Textile Focus presents Industry Opinion Powered by Eurofins, Episode 27 was on the topic- “Recent Industry Scenario for BD Textile Industry” Team Textile Focus received feedback from the industry experts.
Mohammad Hatem, President, BKMEA
I believe the knitted sector is currently the most affected, and one of the main reasons is the gas crisis. You’ve seen in various newspaper reports and in the government investigation committee’s report because gas extraction was delayed for so long. It became evident that due to the profitability of import commissions, more importance was given to imports than to domestic gas extraction. This has harmed both the country and the industry. The extent of the damage we’re facing due to this gas crisis will be very difficult to recover. If the government does not address this issue immediately, the future growth of industrial production will be largely hindered. On the other hand, I believe trade bodies must remain free from political influences. If any trade body gets involved in politics, it will be difficult to resolve its members’ issues or determine effective policies.
Md. Shehab Udduza Chowdhury, Managing Director, Amity Design Ltd.
Many meetings and seminars are held regarding SME factories, but in reality, they do not receive any substantial support. In our BGMEA, there were more than 1,150 SME factories, both bonded and non-bonded, but due to policy and banking issues, nearly 300–400 factories have shut down. These factories collectively contributed approximately USD 6.5 billion in exports and employed around 700,000 workers. I believe the interest rates applied to large factories should not be the same as those for smaller factories. To boost exports and save this industry, a different rate of interest must be established for SME factories. Additionally, the renewal fees for SME factories should be kept at half of what is charged for larger factories. The government should refinance from special funds to reduce financial costs and provide them with 15-year instalment facilities.
Azhar Ali, COO (Spinning), SALMA Group
In our country, cotton fiber is not cultivated naturally, and we have to import the entire supply, amounting to over 7 million bales. We source these from several countries, with 40% coming from Africa, and the rest from the USA, Australia, Brazil, etc. At one time, we used to import significant amounts of cotton from Central Asian countries, but after their spinning industries developed, they no longer export cotton to us.
Asad Sattar, Founder, Arka Fashion Week
Bangladesh has immense potential for advancement. China is one of the largest exporters but has recently focused on capturing the retail sector with some of their popular brands. For instance, in the USA, C&A is now stronger than H&M. If we consider backward linkage, Bangladesh has all the opportunities—it just needs to capitalize on them at the right time. Thinking positively about forward linkage, we should not only focus on export but also consider developing brands for export. Instead of exporting a USD 1 item, we could aim to export items worth USD 50 or 100. This will not only increase our export earnings but also foster talent development.
