RMG export slowdown affects local textile sector
Readymade garments export slowdown over the last several months has been gradually affecting the local textile sector, particularly the factories, which supply woven and knits fabrics for exports.
Currently more than forty per cent of the demands for woven fabrics and about hundred per cent for knit fabrics are met locally and due to slowdown few textile mills are being compelled to stockpile their products.
Textile manufactures who meet the requirement of the exporters are also capable to export their produce directly, but for this they need full support from the government.
Meanwhile the production of locally woven and knit fabrics is rising following the government's strict monitoring on misuse of bonded facilities, said Mohd Khorshed Alam a former director of Bangladesh Textile Mills Association (BTMA) while exchanging views with The Daily Observer on recent fall in earnings from garment exports.
He said as Bangladesh is using state of the art machinery in producing woven fabrics with maintaining compliance, the demand for Bangladesh products persists abroad and there are still opportunities to explore new markets for exports.
He said neighboring India is a potential market for Bangladeshi woven fabrics due to quality.
Alam also chairman of Little Group said, "Few days back I visited Surat of Gujarat in India and I saw their 'viscos' and few other textile products quality are poorer than those of Bangladesh."
He said due to higher costs of several types fabrics in India, Bangladesh can enter at their market at competitive prices with better quality products.
The group chairman said, "I am already trying to enter their market and procedure of sending samples are going on."
The BTMA former director said, "Our textile companies along with dependency on supplying fabrics to exporters and local market can directly search for its export market which will benefit the growing sector and will not be in risks of falling demands at slow exports readymade garments."
He said currently Bangladesh is capable of producing world class fabrics and its market share with the RMG exporters is more than 40 per cent and 60 per cent is being imported as per requirements by world's buyers.
Alam said, "Once we get adequate government supports and there are development in economic diplomacy Bangladesh can invest further in textile sector as still 60 per cent woven fabrics are being imported."
He said once a market for Bangladeshi woven fabrics is identified like in readymade garments, more investments in will occur in weaving sectors.
The BTMA former leader said the recent slowdown RMG export may not persist long but we must search for export destinations for woven fabrics and increase investments in manufacturing new items which are currently being imported by the exporters on back to back letters of credits and under bonded facilities.