
The Ready-Made Garment (RMG) and textile industries in Bangladesh face numerous challenges that hinder growth and sustainability. Below are the seven primary challenges, along with their potential solutions, to shape a resilient future for the sector.
Key Challenges
- Lack of Raw Materials (Fiber, Yarn, and Fabrics)
- Impact: Dependence on imported raw materials drives up production costs, creates supply chain disruptions, and limits competitiveness.
- Lack of Machinery & Spare Parts
- Outdated or insufficient machinery hinders production efficiency and quality.
- Lack of Dyes & Chemicals
- Inadequate local production and high costs of importing essential chemicals slow manufacturing processes.
- Lack of Energy & Power
- Frequent power outages and limited access to renewable energy sources impact production timelines and sustainability goals.
- Logistics Challenges
- Inefficient transport and port infrastructure lead to delays and higher operational costs.
- Lack of Sustainability Practices
- Increasing global demand for sustainable practices is unmet due to limited adoption of eco-friendly manufacturing methods.
- Lack of Employee Skill Development Programs
- A shortage of skilled workers reduces productivity and innovation within the sector.
Detailed Focus: Addressing Raw Material Scarcity
Challenges in Raw Material Availability
- Import Dependency: Heavy reliance on imported cotton, synthetic fibers, and premium yarn.
- Limited Local Production: Insufficient domestic cultivation of cotton and alternative fibers.
- High Costs: Importing raw materials escalates production expenses, reducing price competitiveness.
- Supply Chain Disruptions: Geopolitical factors and global economic shifts can create material shortages.
Strategies for Overcoming Raw Material Issues
- Encouraging Local Production
- Expand cotton cultivation in regions like Rajshahi and Rangpur.
- Promote the farming of alternative fibers such as bamboo, hemp, and jute.
- Foster the development of synthetic fibers like viscose and polyester domestically.
- Promoting Recycling and Circular Economy
- Establish recycling plants to convert textile waste into reusable fibers and yarn.
- Invest in post-consumer waste recycling technologies to reduce dependence on virgin materials.
- Investing in Local Textile Mills
- Enhance spinning capacities to decrease reliance on imported yarn.
- Support the establishment of knitting and weaving mills to boost local fabric production.
- Diversifying Import Sources
- Develop trade partnerships with alternative suppliers from regions like Africa, Turkey, and Southeast Asia.
- Negotiate preferential trade agreements to ensure a steady and affordable supply of raw materials.
- Building Strategic Reserves
- Create stockpiles of essential materials to safeguard against supply chain disruptions.
- Establish cooperative buying programs for bulk purchasing of raw materials.
- Fostering Innovation and Technology
- Invest in R&D for producing high-quality synthetic fibers.
- Develop blended fabrics like cotton-polyester to reduce reliance on single raw materials.
- Policy Support and Incentives
- Offer tax exemptions and low-interest loans for businesses investing in raw material production.
- Reduce import duties on essential raw materials to ease cost burdens.
- Encouraging Global Collaborations
- Partner with international firms to establish production plants for textiles, yarn, or fibers in Bangladesh.
- Invite global experts to train local manufacturers in advanced production techniques.
- Improving Supply Chain Management
- Upgrade storage and transport facilities for raw materials.
- Digitize supply chain systems for better inventory and shortage management.
Future of Bangladesh’s RMG/Textile Industries: What’s Next?
To secure a sustainable and competitive future:
- Focus on localizing raw material production.
- Embrace eco-friendly and circular production processes.
- Strengthen logistics and supply chain systems.
- Prioritize skill development programs for employees.
- Integrate renewable energy solutions to ensure a steady power supply.
A self-sufficient raw material supply chain will:
- Lower production costs and enhance competitiveness.
- Shorten lead times for export orders.
- Increase global market share by offering cost-effective, high-quality products.
- Build resilience against global supply chain disruptions.
Bangladesh’s RMG and textile industries must address these challenges with robust strategies to remain a global leader in the sector.

Author Name : Asadul Hoque Shaun
M.com, MBA, PGDSCM
GM (HOD) Supply Chain and Warehouse Management.
Asrotex Group