Why is the recovery of Bangladesh’s garment sector urgent ?
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Ibrahim Khalil Ahasan
Bangladesh's exports are greatly aided by its apparel industry. Approximately 85 percent of Bangladesh's $55 billion in yearly exports come from its 3,500 garment factories. However, the textile industry has suffered along with other sectors due to the numerous irregularities and corruption of the previous Hasina government. The nation's vital textile industry was severely disrupted during the weeks of turmoil and large-scale demonstrations that overthrew Hasina, with suppliers moving orders abroad. Companies have been finding it difficult to continue operating on a regular basis, and heavy losses have been incurred by producers, exporters, traders, and entrepreneurs in the economy as a whole. This industry is currently experiencing a severe crisis as a result of recent internal and international conspiracies. In recent years, several textile mills have closed. One by one, the yarn mills are also closing.
The yarn produced in those that are running is not being sold. Mountains of yarn are consequently building up in the godown. The situation is such that the mill owners are now busy struggling to survive. As most of the domestic yarn and textile mills have closed down, the ready-made garment industry has also started to have a negative impact. Industry owners say that international circles are taking many planned steps to take over the entire textile sector of Bangladesh very smartly. If the necessary initiatives are not taken now, Bangladesh will have to remain a puppet due to the monopoly of foreigners in the future.
It is seen that the rival countries have taken several strategic steps to completely capture the market in the yarn and textile sector. On the one hand, they are giving attractive incentives to this sector in their country. As a result, their production cost is much lower than that of Bangladesh.
In addition to this, there is a vicious cycle in the international market of buying and selling cotton. Besides, industrial owners have to face extreme shortage of gas and electricity in the country if they want to produce products.
As the country rejoices at the end of an era of managed elections and ever-increasing economic cronyism and autocratic rule, we think that initiatives should be taken now to thwart the international conspiracy on the textile sector. Advice should come from experts on what to do so that domestic yarn mills can produce products at low cost. High service charges on the country's yarn mills and compound interest on bank loans are also leading the sector to disaster.
In this context, it is necessary for the government to come forward to save the yarn and textile industry. In that case, providing cash incentives to domestic yarn and cloth manufacturers, solving the electricity and gas crisis, adopting industrial conservation policies, and also taking out strategies to prevent industrial encroachment. If the national interest is not given importance in this regard, it will be difficult to keep the domestic textile industry alive. The formation of a task force to address sector-specific challenges, aiming to restore international buyers’ confidence in Bangladesh, resolve the prevailing issues of the garment industry, particularly removing business barriers, simplifying business processes should BE MAIN TASK OF THE REVIVAL OF THE GARMENTS INDUSTRY GROWTH.
Dr. Yunus indicated that she was in favor of the BGMEA delegation's suggestion to create the task force. and declared, "We'll guarantee openness at every turn. Bangladeshis are incredibly talented people. Bangladesh is the second-biggest exporter of clothing in the world. Professor Muhammad Yunus, the chief adviser to the interim government, urged Bangladesh's garment industry on Wednesday to aid in the reconstruction of the nation following 15 years of economic looting under Sheikh Hasina's dictatorship.
"We want it to grow further.". Additionally, Prof. Yunus advised the manufacturers to keep politics out of their business. "You ought to make it very evident that you will not combine politics and business. It doesn't advance any cause," he suggested.
(To be contd)
Bangladesh's exports are greatly aided by its apparel industry. Approximately 85 percent of Bangladesh's $55 billion in yearly exports come from its 3,500 garment factories. However, the textile industry has suffered along with other sectors due to the numerous irregularities and corruption of the previous Hasina government. The nation's vital textile industry was severely disrupted during the weeks of turmoil and large-scale demonstrations that overthrew Hasina, with suppliers moving orders abroad. Companies have been finding it difficult to continue operating on a regular basis, and heavy losses have been incurred by producers, exporters, traders, and entrepreneurs in the economy as a whole. This industry is currently experiencing a severe crisis as a result of recent internal and international conspiracies. In recent years, several textile mills have closed. One by one, the yarn mills are also closing.
The yarn produced in those that are running is not being sold. Mountains of yarn are consequently building up in the godown. The situation is such that the mill owners are now busy struggling to survive. As most of the domestic yarn and textile mills have closed down, the ready-made garment industry has also started to have a negative impact. Industry owners say that international circles are taking many planned steps to take over the entire textile sector of Bangladesh very smartly. If the necessary initiatives are not taken now, Bangladesh will have to remain a puppet due to the monopoly of foreigners in the future.
It is seen that the rival countries have taken several strategic steps to completely capture the market in the yarn and textile sector. On the one hand, they are giving attractive incentives to this sector in their country. As a result, their production cost is much lower than that of Bangladesh.
In addition to this, there is a vicious cycle in the international market of buying and selling cotton. Besides, industrial owners have to face extreme shortage of gas and electricity in the country if they want to produce products.
As the country rejoices at the end of an era of managed elections and ever-increasing economic cronyism and autocratic rule, we think that initiatives should be taken now to thwart the international conspiracy on the textile sector. Advice should come from experts on what to do so that domestic yarn mills can produce products at low cost. High service charges on the country's yarn mills and compound interest on bank loans are also leading the sector to disaster.
In this context, it is necessary for the government to come forward to save the yarn and textile industry. In that case, providing cash incentives to domestic yarn and cloth manufacturers, solving the electricity and gas crisis, adopting industrial conservation policies, and also taking out strategies to prevent industrial encroachment. If the national interest is not given importance in this regard, it will be difficult to keep the domestic textile industry alive. The formation of a task force to address sector-specific challenges, aiming to restore international buyers’ confidence in Bangladesh, resolve the prevailing issues of the garment industry, particularly removing business barriers, simplifying business processes should BE MAIN TASK OF THE REVIVAL OF THE GARMENTS INDUSTRY GROWTH.
Dr. Yunus indicated that she was in favor of the BGMEA delegation's suggestion to create the task force. and declared, "We'll guarantee openness at every turn. Bangladeshis are incredibly talented people. Bangladesh is the second-biggest exporter of clothing in the world. Professor Muhammad Yunus, the chief adviser to the interim government, urged Bangladesh's garment industry on Wednesday to aid in the reconstruction of the nation following 15 years of economic looting under Sheikh Hasina's dictatorship.
"We want it to grow further.". Additionally, Prof. Yunus advised the manufacturers to keep politics out of their business. "You ought to make it very evident that you will not combine politics and business. It doesn't advance any cause," he suggested.
(To be contd)