The apparel manufacturers of Bangladesh have shifted their focus towards India from China for importing man-made fibre yarn and fabric, reported Bangladeshi media.
Media also reported that the manufacturers are doing this due to competitive pricing, improved lead time as Bangladesh recently opened two new land ports, and growing demand for the key apparel raw material globally.
Moreover, the United States’ anti-China position might also have played a role in this shift, industry people told the media.
They also said that the move towards alternative sources of raw materials will help support the growth of the man-made fibre industry in Bangladesh and reduce dependence on China.
Last December, the Bangladesh government allowed the import of man-made yarn and fabric through Benapole and two other new land ports – Bhomra in Satkhira and Sonamasjid in Chapainawabganj.
Last month, 60 firms of Gujarat yarn and fabric producers, most of whom are involved in the man-made fibre trade, participated in an expo in Dhaka to explore the possibility of exporting the product at a higher rate to Bangladesh.
Moreover, a delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is going to visit India to explore the possibility of sourcing man-made yarn from the neighbor.
Faruque Hassan, president of the BGMEA told the media that Gujarat has a special reputation for man-made fibre yarns and fabrics. Bangladesh has also increased its focus on the export of such products. As a result, they have increased attention there for raw materials.
The global market for man-made fibre clothing is steadily increasing while demand for cotton-made clothing is decreasing.
However, for Bangladesh, it is the other way around. – man-made fibre clothes cost more than cotton.
Speaking to the media, Sparrow Group MD Shovon Islam said that earlier they used to import almost all of the requirements from China but last year, they imported 20% of the raw materials from India.
In particular, they have increased the import of raw materials for export to the US market from there.
The global apparel market was $440 billion in 2021, of which man-made fibre apparel accounted for more than 50%. On the other hand, Bangladesh’s cotton-based apparel export accounted for 72%, man-made fibre apparel 24% and the rest were silk, wool, and others.