Silk sector braces for heyday as Chinese investors queue up

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Monira Munni
Local silk industry is expected to get a boost, as China, the world's one of the largest silk producing country, showed its interest to invest in the sector.
A high-powered delegation from the China Chamber of Commerce for Export and Import of Textiles (CCCT) expressed the interest during a discussion with the leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Silk Manufacturers and Exporters Association of Bangladesh (SMEAB) Monday.
The purpose of the Chinese delegation's short visit was to explore potentiality of the local silk sector, Chinese and joint venture investment in silk production, facilities offered by the Bangladesh government for foreign investors, and duty structure for raw material and machinery import.
The eight-member Chinese delegation, headed by CCCT vice-chairman Zheng Xinmin, also included silk cultivators and representatives from finance and commerce ministries.
BGMEA president Md. Shafiul Islam (Mohiuddin) presided over the meeting, while its vice presidents Md Siddiqur Rahman and S M Mannan Kochi, and former vice president Atiqul Islam were also present in the meeting.
"China wants to invest in the sector. They also expressed their willingness to set up factories in Bangladesh and produce silk for manufacturing textile and garment," a meeting source told the FE.
Garment manufacturers discouraged foreign direct investment (FDI) in the sector, except for manufacturing high-value added products, he said, though FDI is now the need of time for the local silk sector.
"If Chinese investment comes in this sector, it will give a breakthrough to the sector. It will also create employment and forestation," he added.
SMEAB president Alauddin Ahmed said: "Bangladesh has huge potentiality, as labour cost is relatively low here, which is significantly increasing in China."
"We welcome foreign investment in mulberry silk production. Chinese investment will help the sector to grow further by using modern technology, necessary for upgradation of traditional system of local silk production."
There is a huge market for silk, especially in China. The country is looking for a suitable place, as manufacturing is gradually reducing there, he added.
BGMEA leader Siddiqur Rahman said: "The Chinese team's visit is a short one-day visit this time. They will come early next year with a big delegation to explore the potentiality in Bangladesh."
The delegation discussed about the present situation of silk and sericulture sector, the government's policy support to draw local and foreign investments for the sector, and the potentiality of the sector etc, he added.
Sericulture and the silk industry are mainly concentrated in the country's western and north-western regions. Bholahat, Chapai Nawabganj and Rajshahi are the major producing areas, though Jessore, Kushtia, Natore and Pabna are also suitable for sericulture, industry people said.
The north-western regions, especially Bogra, Dinajpur, Rangpur and Thakurgaon, are noted for mulberry cultivation, they added.
Local manufacturers produce sharee, shirt, panjabi, fatua, tie, salwar kameez, stole and various gift items. They also export silk scarf and accessories, jacket, coat, home furnishing fabrics, cushion, pillow, bed cover and wall-mats.
Most of the local demand is met by importing silk yarn, mainly from China, as its production is meagre here. However, industry people claimed that the production is gradually increasing in the recent times.