TEXTILE IN BANGLADESH
Spinning Mills in Bangladesh is increasing rapidly and machinery form India, Japan, Switzerland, China, italy, Germany & UK are imported for this purpose. Though new Machine manufacturers are penetrating in the market of Bangladesh. Japanese machine still dominating and Zechosolokia has monopoly in exporting rotor Spinning frame to Bangladesh. Most of Mills are equipped with modern testing facility including High Volume Instrument (HVI) & Advance Fiber Information System (AFIS) and utilities like humidification plan, Chiller, Generator, Boiler, Water & Gases etc. Lot of raw cotton is imported from CIS countries and 50% of product yarn used for export quality fabric.
The ratio technical person, production related workers, administrative manpower is 0.756 : 0.38 and ratio of male & female workers is 7989: 6193 i.e. almost 50 : 50. Now at this moment the ratio of working Degree & Diploma Textile Engineer is 153: 1 46 i.e. almost 50:50.
Textile and Clothing sector is the largest sector in Bangladesh in respect to foreign currency earning and job creation. The sector is labor intensive and it is of low productivity; i.e., low value added per labor. It provides employment to about 50% of the work force of our country and contributes9.5 0f our total GDP. Commencing in 1980s, Bangladeshi T&C sector has gained fame globally; in this category. It has established this position in this category since long; in the US and European markets. Present global financial meltdown is helping Bangladesh to enter in the stronger Asian market, namely- Japan. As soon as the global economy meltdown started, several features& articles in different perspectives of T&C sector of Bangladesh.
Bangladeshi Textile and Clothing (T&C) Sector and Its possible prospect
All most all of the articles published so far have concluded, the present meltdown in global economy has good impact on our T&C sector. Recently, also Bangladesh Bank has confidently disclosed positive impact of global financial turmoil on our T&C sector. Global financial crisis pressurizes consumers of medium and high valued textile products absorb low value-added products. Bangladesh is undoubtedly leading in the low value- added category of T&C items globally with its competitors China, India, Cambodia, and Sri Lanka, Bangladesh captures only 3% of T&C market of the global demand. But it is more than 76% of our total export figure. We export 85% clothing and 15% textile of total T&C export.
Global clothing sector generally divided into three commodity chains. Bangladesh belongs to the bottom position with lowest value added unit price, dealing with mere assembling; so called mere assembling Manufacturer. Original Brand Manufacturer with highest value added unit is on the top of the commodity chain where Italy positioned and at the middle is original Equipment Manufacturer where Korea and Hong Kong enumerated. China belongs to both OEM and OBM.
Bangladeshi T&C sector can be divided into 5 sub- sectors, which starts with Fiber Manufacturing, Yarn Manufacturing, Fabric Formation, Dyeing& Printing and Clothing Manufacturing. Though belongs to MAM member, Bangladesh clothing sector has gained remarkable growth and becoming almost cent percent export- oriented. Bangladesh is one the five top clothing exporters in the world with annual export ofUS$12 billion. The reasons behind the growth of the T&C industry are through international supports in various forms: MFA (Multi-Fiber agreement 1974-94), ATC (Agreement on Textile and Clothing 1995-05), and GSP (Generalized System Preferences) etc. In addition, local cheap and vast work force contributes remarkable growth of this industry. Our work force is 140% cheaper than that of China.
In literatures ‘Garment and Clothing’ have their own meaning. Garments refer to the products that cover human body. Therefore, textile products, Leather products, Shoes, etc are garments. Clothing refers to finished piece of fabric that can be used for the purpose of human body or bed. Therefore, It is wise to use the word ‘Clothing Industry’ instead of ‘Garment Industry’ in Bangladesh Progressive Enhancement of export Performance: Every year the export figure of T&C sector of Bangladesh is showing positive growth Therefore, the next year target is set- up about 16 billion US$ by EPB.
Table 1: T&C items export figures, its contribution and growth
|Year||Export in US$ (million)||Contribution to total exports||Growth Rate|
|2008-09||12000.267||– – – –||+12.14|
Table 2: Comparing labor cost & Energy cost with competitor countries.
|Country||Labor cost||Energy cost|
Positive and smooth export growth is directly contributing to build our local market of clothing. Within very short period, we have seen fast growth of local clothing brands and its outlets in different parts of Dhaka and other big metropolitan cities. There are more than 50 famous clothing brands; big and small size; in our country. Thereby directly & indirectly; creating job for many educated, unskilled and semi skilled people. Many private fashion and clothing designing institutes have been set up in capital and in other big cities. As the T&C export is contributing substantially more than any other sectors in the national economy, the government is going to introduce diploma education on fashion designing and clothing designing to strengthen this sector very soon.
To bringing better idea and educational syllabus on these diploma education, the honorable Director General, Prof. Md. Abu Basher of Technical Educational Board of Bangladesh visited the most leading fashion institute of Europe in Germany. Positive export growth of items has made textile and clothing education most lucrative Most of the private universities are offering Bachelor of Science (B.Sc.) in textile Engineering, Diploma and B.Sc. Clothing Technology. Some universities are offering textile/clothing Master of Business Administration. Buying houses by local and foreign entrepreneurs for T&C in Bangladesh have sprang up more than 1000 within very short time. These Buying houses contribute to about 70% of total T&C export of the country. Every month 5-6 Buying Houses are coming into existence. Therefore, creating job opportunities for skilled and semi skilled manpower of the country.
Basic Structure of Bangladeshi Textile& Clothing
In fact, our T&C sector is in flourishing stage. Minimum one more decades is required for the sector to become fully flourished! Thereby, we can higher and higher export figures on T&C. As our country would be fully flourished with T&C export, work force development with employment saturation, our country could improve her status from least Developed Country to Developing Country. Past and present trends and positive performance strongly announce more and more T&C units would be erected around Dhaka and Citation.
Rural areas, where numerous clothing labors are living through small production; like house- based clothing production cottages; could also come into account. When Dhaka and chittagong and its surrounding will be saturated in term of area shortage, then the rural areas would get priority by investors for installing T&C industry or park. The first step for setting up clothing production unit must be in saidpur that is situated the
northwest of Bangladesh And where there two production factors ie; land and labor are already existing .Only capital that is investor are required. However road and infrastructure Saidpur town are well electricity plant and EPZ, more than 15 different banks and internet facilities are present there.
After few years, when out T&C sector would get matured in terms of quality production; skilled and educated persons might take the role of employers. Our T&C industry consequently switch from low value- added items to medium and high value-added items. In other word, we change our status from ‘cut and paste’ to Original equipment Manufacturer. Then some premier clothing brands names may be found in our export lists. Now, mostly discounters of clothing chains consume clothing’s from Bangladesh.
However, there is a consistent support from government to ensure working environment. Moreover, intelligent and smart policies and rules with importing countries, e-governance in banks, customs offices, clearing and Forwarding offices, etc are getting support of our government. Government should also create a monitoring board that would watch and recommend T&C industries to be compliant with environment and social issues. In future, this T&C sector would play an important role to revive jute and its industry. Our T&C industry is only vertically integrated. But if the competition go intense; our producers have to have picked up newer way to compete. In other word , they pick horizontal integration. Therefore, the producers would compete through economics of scope.
Possible ways to Remain competitive in T&C Sector: More R&D and innovation for T&C sector: There nothing better than continuous Research and Development to remain competitive in the global trade battle. Through R&D new product development is possible which is the armored to remain competitive globally. We already proved our ourselves most competitive in price of basic clothing products. We have to switch from low value-added items to medium and high value-added products through own clothing fashion and design.
Develop Higher Quality Education and Training: At present 70 institutes are involved to provide educations on T&C fields, which includes vocational training, certificate courses, diploma and B.Sc. degrees. However, there emphasis on quality improvement is not adequate or of International standard. According to a survey of Bangladesh Quality Support Programmed (BQSP) T&C requires more than 30,000 marketing personal 20,000 technically educated experts. ‘Quality Improvement’ based technical institutions are most necessary in the country. Only college of textile engineering and technology under Dhaka University has proved itself as the most effective institution to supply technical experts (textile engineers) while BIFT is contribution through producing technical knowledge- based clothing marketing human resources. However, quality and training of our exiting institutes need to be improved significantly
Active common platform for T&C sector: In Bangladesh there are two stakeholders of this sector namely BGMEA and BKMEA who are more active than earlier to build our T&C industry less vulnerable and to promote the sector through seminars and exhibitions locally. These institutions along with German organization, GTZ, are trying to improve the overall scenario of this sector. Besides, there is a very active organization name ‘ITET’ (The institution of Textile Engineers and Technologist, Bangladesh) organized by textile engineers who is playing a very important role to improve the whole T&C sector.
To improve our T&C sector we need effective trade policies and compliance. With better trade policy we can have easy access to global market.
Bangladesh has a glorious background of Textile Industry and at present it is an important sector as more than 76% at the export earning comes from this sector. At present BTMA members have the highest investment about 9500 corer in the industrial sector at Bangladesh and Textile Sector employees about 27 ac people.
In Bangladesh at present there are 1 58 Spinning mills under BTMA. In Bangladesh, Spinning mills are fully capable of meeting the requirement of export quality knit fabric and about 20% at the woven fabric requirement for export oriented RMG industries.
As the export increased in the Knitwear sector, the capacity of backward linkage also gradually increased accordingly. The result is local suppliers can provide 90% of the total fabric requirement of the sector. The growth of spinning also stepped with the growth of knitwear exports. In 1 993-94 total number of spindles was 1 .38 million that supplied 1 0.70 million KG yarn. In 2003-04 the number almost tripled and it became 3.77 million that supplies 239.00 million KG yarn. As of now the total investment in the backward
linkage industry is more than US$ 2.00 billion. At present, Bangladesh is facing challenge in the quota free world market. Hence Bangladesh must maintain quality in all respect in Textile Industry. This is way it is necessary to find out the present status of Textile Spinning Mills in Bangladesh.
Period of Establishment:
|Year of Establishment||Number of mills||Percentage of Mill %|
Mill Size ( According to the no. of Spindle):
|No. of Spindle||No. of Mills||Percentage of mill %|
|Up to 17000||1||4.76|
Demand of yarn over year:
|Year||Yarn Demand for Domestic fabric consumption in million kg||Yarn Demand for export oriented RMG industry in million kg||Total Demand for yarn in million kg|
Country of Origin of Machinery Used:
|Country of origin||Percentage of machine ( Different Origin) Used|
|India||Blow Room||Carding||Drowing||Lapformer||Combing||Simplex||Ring frame||Rotor frame||Auto winder|
comber & Rotor status in spinning:
|Spinning Mills||With comber||80.95%|
|Country 0f 0rigin||Percentage %|
TESTING FACILITY (According to Existing Testing Machinery):
|Name of M/c||No. of Mill||Percentage %|
|Process Type||No. of mill||Percentage %|
|In process Q.C.||3||14.28|
|Both in process & Routine||12||57.16|
|In process, Routine & Online||4||9.04|
Utility status of Soinning Mills:
|Own water supply||100%|
|Water from wASA||0%|
Origin Row Materials (Cotton):
|Country of origin||No. of Mill Using||Percentage of Mill Using %|
|Designation||Total Mills||Total No. of Officers||Officers|
3.10.2. Details Of Manpower:
|Type of Manpower||Total Number||Man power/1000 spindle|
|Stuff & Workers||16150||20.24|
|Others Stuff & workers||448||0.56|
3.10.3. Natiponality 0f Technical person:
|Nationality||Total Number||Percentage Of Technical Person|
3.10.4. Gender of workers:
|Gender||Total Number||Percentage Gender|
3.10.5. Qualification of technical Person:
For the economic development of a nation R & D is one of the pre-conditions. Though the textile industries of Bangladesh have exporting their products in the competitive wolrd market, R & D phenomenon in textiles as a whole is not mentionable compared to our neighboring countries. In India Universities and research institute are conducting continuous research on textiles with a view to improving quality & reducing the cost of products. In Bangladesh their prevails no such national university/ institutes expecting Bangladesh Jute Research Institute where only jute fibre is addressd. In this situation ,national research institute on textiles is a crying need of the nation. Both public & private sectors can come sorward to fill up the gap.Private institute may be pioneer in formulating a modern textiles research institute for having quality feedback of the technical problem in industry.