In the eleventh month of the fiscal year, the growth rate of garment exports has dropped dramatically. Last May, exports plummeted by 16 per cent. The garment sector is under pressure as a result of the severe gas crisis, unregulated bank loan interest rates, wage increases, and a lack of product price increases. In this situation, clothing industry owners should take some strategic initiatives in conjunction with government policy support.
The global demand for man-made fibre (MMF) apparels is on the rise, with annual growth of 3 to 4 per cent as a substitute for cotton amid changes in global fashion trends. Over the past five years, the share of man-made fibres (MMF) in global fibre production has risen to 78 per cent. However, the picture in Bangladesh is completely different.
According to the Export Promotion Bureau (EPB), about 25 per cent of the country’s apparel exports comprise MMF products. Three-fourths of Bangladesh’s exports are cotton-based whose price is much lower than the MMF-based apparel.
The global demand for MMF-based apparel items is increasing due to uncertainty in cotton production and supply, price comparability and some of the benefits offered by such products, such as superior durability, water and wrinkle resistance and color retention. Increased use of MMF would enable the country’s RMG industry to diversify its products and move up the value chain. However, Bangladesh’s MMF backward linkage capacity needs to be developed and more investment is needed in the domestic MMF sector.
