India, Pakistan surpass Bangladesh in RMG export growth in EU, US markets
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Thursday
February 02, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
THURSDAY, FEBRUARY 02, 2023
India, Pakistan surpass Bangladesh in RMG export growth in EU, US markets

RMG

Reyad Hossain
01 October, 2021, 01:05 pm
Last modified: 01 October, 2021, 01:30 pm

Related News

  • BGMEA president calls for ethical prices from buyers
  • Bangladesh apparel industry: Steps to move the industry forward in 2023
  • Challenging time waiting for RMG
  • What should be the management strategy of our apparel industry in 2023
  • Another RMG factory in Bangladesh recognised as green

India, Pakistan surpass Bangladesh in RMG export growth in EU, US markets

Reyad Hossain
01 October, 2021, 01:05 pm
Last modified: 01 October, 2021, 01:30 pm
TBS Infograph
TBS Infograph

Despite Bangladesh's securing a good number of apparel work orders from the European Union and the United States, it was outnumbered by neighbouring India and Pakistan in terms of export growth in the two major markets in January-July this year. The two countries clearly capitalised on their competitive advantages. 

In the first seven months of this year, Bangladesh's readymade garment exports registered a little over 18% growth in the EU, while the two neighbouring countries saw their exports rise by 22% and 28% respectively, according to Eurostat. 

Likewise, exports from India and Pakistan to the US market during the same period experienced better growth over Bangladesh, according to Otexa data.

Apparel exports say an abnormal rise in yarn prices - a key ingredient that accounts for 50-60% cost of a clothing item - has given the two countries an edge over Bangladesh as they can source yarns domestically at prices 30%-50% lower than in Bangladesh.

"Many work orders slipped out of our hands and shifted to India or Pakistan because of high yarn prices in Bangladesh," Fazlee Shamim Ehsan, chief executive officer at Fatullah Fashion Limited, told The Business Standard.

As the two neighbouring countries produce cotton locally, they can offer clothing items at comparatively low prices, he said.

Md Fazlul Hoque, former president of Bangladesh Knitwear Manufacturer & Exporters Association (BKMEA), told TBS, "The difference between raw material prices might be the reason why India and Pakistan performed better than us in RMG growth. Our exports are increasing and there is room for further development."

"There is no research on why our apparel exports are not growing more. We have to find out the reasons. We need to assess what strategies our competing countries have adopted to accelerate growth," he pointed out.   

However, Shahidullah Azim, vice-president of Bangladesh Garment Manufacturers & Exporters Association (BGMEA), expressing his optimism, said, "We will surpass both the countries in the coming months with a large number of work orders flowing in."

According to Eurostat data, European countries imported around $38 billion worth of apparel items in the January-July period this year, up by 13% over the same period a year ago.

Bangladesh, the second largest RMG exporter after China, exported apparel items amounting to $7.82 billion to 27 European countries in January-July this year. 

Other top garment exporters to the EU market are Turkey, India, Cambodia, Vietnam, Pakistan, Morocco, Sri Lanka and Indonesia.

Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), told TBS that Bangladesh stays behind a bit because it does not have its own cotton, which can be compensated to some extent by enhancing productivity and product diversification.

"There is a competition over getting hold of the buyers moving away from China. Bangladesh should pay attention to it," he added. 

Prices of cotton had been rising worldwide since the beginning of this year, leading to a surge in yarn and fabric prices. 

RMG entrepreneurs have claimed that local spinning mills have been charging much higher than in the global market, while spinners have repeatedly clarified that they hiked prices in line with cotton prices.

Both the parties, however, recently reached an agreement on pricing of yarns.

In FY21, Bangladesh exported $31.45 billion worth of garment products, of which knitwear items accounted for over 50%.

In 2020, Bangladesh exported a little over $14 billion worth of RMG items to the European market, while the volume amounted to $16.45 billion in 2019.

Yarn price differences between local and global markets

According to global market data, the current cotton price is a little less than 95 cents per pound. Cotton imported by Bangladesh is mostly used to produce 30 count yarn meant for manufacturing knitwear items. 

RMG exporters claim that per kg yarn price should not cost more than $3.8, including all expenses, but is being sold at $4.15-$4.2 at the local market. 

Textile millers, however, say it costs about $4.12 to produce 30 count yarn per kg of yarn, which they offer at $4.2 per kg.

Drawing a comparison between 30 cotton carded yarn prices in Bangladesh and India as of last Wednesday, Fazlee Shamim Ehsan said per kg import cost of the same yarn from India is $3.60, which is sold at $4.15 per kg in Bangladesh. But Indian buyers get the same at $3.5 per kg. 

 

Bangladesh / Economy / Top News

RMG / RMG Exports

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • File photo
    Another shock for consumers as LPG price hiked by Tk266 per 12 kg cylinder
  • The by-polls to six constituencies witness a low turnout on 1 February. This picture was taken from a polling centre at Brahmanbaria-2 by-polls. Photo: TBS
    Why has the ‘little man’ gone missing in elections?
  • Indian billionaire Gautam Adani speaks during an inauguration ceremony after the Adani Group completed the purchase of Haifa Port earlier in January 2023, in Haifa port, Israel January 31, 2023. REUTERS/Amir Cohen
    Adani's market losses top $100 bln as shelved share sale spooks investors

MOST VIEWED

  • Photo: PR
    BKMEA extends deal with CSL Software to bring knit workers under biometric database
  • Faruque Hassan. Sketch: TBS
    BGMEA president calls for ethical prices from buyers
  • The problem is that domestic politics increasingly takes primacy over everything else. And it often works at cross purposes with sensible trade policy. Photo: TBS
    New wage board for garment workers on cards
  • Abdullah Hil Rakib/Director,BGMEA. Illustration: TBS
    Bangladesh apparel industry: Steps to move the industry forward in 2023
  • Representational photo: Collected
    2 more factories recognised ‘green’ with platinum rating
  • Photo: Courtesy
    World Bank MD visits Team Group factory

Related News

  • BGMEA president calls for ethical prices from buyers
  • Bangladesh apparel industry: Steps to move the industry forward in 2023
  • Challenging time waiting for RMG
  • What should be the management strategy of our apparel industry in 2023
  • Another RMG factory in Bangladesh recognised as green

Features

Six Jeep Wranglers and a special XJ Jeep Cherokee set out into the depths of Lalakhal, Sylhet for an experience of a lifetime. Photo: Ahbaar Mohammad

Jeep Life Bangladesh: A club for Jeep owners to harness the power of their vehicles

7h | Wheels
While the Padma bridge in operation is changing the lives of millions in the south for the better, passenger rush to Shimulia ghat died down. Photo: Masum Billah

How are the Shimulia ghat businesses faring after Padma bridge?

9h | Panorama
After so many investments going embarrassingly wrong, as was the case with Sam Bankman-Fried, perhaps tech investors’ preference for less experience will wane. Photo: Bloomberg

Are you the next Steve Jobs? Good luck raising money in 2023

9h | Panorama
An elderly couple's lonely battle to save Dhaka's trees

An elderly couple's lonely battle to save Dhaka's trees

1d | Panorama

More Videos from TBS

Colorful display of SAGC

Colorful display of SAGC

Now | TBS Graduates
Is Hathurusingha the most successful coach of Bangladesh?

Is Hathurusingha the most successful coach of Bangladesh?

22h | TBS SPORTS
Semiconductor, pharma should get more attention

Semiconductor, pharma should get more attention

1d | TBS Round Table
Dhali Al Mamun’s art depicts colonial impact

Dhali Al Mamun’s art depicts colonial impact

23h | TBS Stories

Most Read

1
Bapex calls candidates for job test 9 years after advert!
Bangladesh

Bapex calls candidates for job test 9 years after advert!

2
Leepu realised his love for cars from a young age and for the last 40 years, he has transformed, designed and customised hundreds of cars. Photo: Collected
Panorama

'I am not crazy about cars anymore': Nizamuddin Awlia Leepu

3
Photo: Collected
Energy

8 Ctg power plants out of production

4
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo
Economy

IMF approves $4.7 billion loan for Bangladesh, calls for ambitious reforms

5
Photo: Collected
Court

Japanese mother gets guardianship of daughters, free to leave country

6
Fund cut as Dhaka's fast-track transit projects on slow spending lane
Infrastructure

Fund cut as Dhaka's fast-track transit projects on slow spending lane

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]