Past and future of knit industry in Narayanganj
Wednesday, 4 January 2012
Once Narayanganj was used to be known as the 'Dandy of the East' due to its volume and significance of jute industry. In course of time, Narayanganj was about to lose its glory but at present it could manage and regain its glory in another field of business: it is knit Industry. Now it may be introduced as the 'Knit City' of Bangladesh.
In the past Narayanganj used to produce knit fabric and garments only for use as under vest (genji) in domestic purpose only. But export quality knit goods are produced in Narayanganj. More than 80% of total knitwear exports from Bangladesh and holding its unique quality image to the several countries of the world.
In 1984 only three business men of Narayanganj initiated knitwear export by exporting some T-shirts. By this time, more than 1800 knit garment factories are functioning in Narayanganj. By giving the pace of direct and indirect employment to 1.2 million (12 lakh) employees, this industry exported US$10 billion in the last fiscal year (FY). This target has been fixed at $12 billion for the current FY.
The contribution of garment industry to the total export earning of our country is 80%. The government should pay more attention and should be pro-active for the development of this labour intensive industry. It has to ensure adequate supply of electricity and gas.
At present, the number one problem for the textile sector is the shortage of energy. The major supply of energy for our factories comes from gas-driven generators. But it is to be regularly noted that the production of 60% factories is being hampered tremendously due to severe shortage of gas supply. As an entrepreneur, I think, if our government imposes the cylinder system for household use of gas like other neighbouring countries, at least 50% of existing gas supplies will be saved from this purpose. This will then be possible to be added to supplies for industrial production.
Transportation and port facility are the most important preconditions for economic and industrial development of a country. Our country is far backwards in this respect. Development of industrial sector will be a far cry if the government does not take prompt and pragmatic steps to help address such issues. In addition to these, we have to be more attentive to the implementation of compliance requirements for the factories and to upgrade the living standard of the workers. Otherwise, the bright prospects of textile/RMG sector will be blighted sooner rather than later as it was our previous experience with the jute sector.
To survive in competition with the competitor, countries, there is no alternative to fixing the rate of interest on bank credits/loans within single digit. Incentives should be given at the rate of 10 per cent for all types of export-oriented units against their respective export receipts. Bangladesh is going to be mostly affected by the global climate change factor. So we have to be more careful to save our environment from pollution by the factories. Every factory should obviously run under effluent treatment plant (ETP).
But ETP is an expensive infrastructure. Here the government should take the responsibility to help set up zone-wise central ETP to purify centrally the extracts from all the factories in a certain zone and can take the bill from all of them at a rate, to be filed by it, on the basis of per cubic meter of water like that of gas bill.
The new markets for knit products should effectively be explored. The prospective countries in which our knit products are yet to be introduced should be identified. Our embassies and high commissions in those countries can arrange useful trade fair with the cooperation of the chamber and the relevant ministry of those countries. Through negotiations with different countries, arrangements of exports under zero tariff facility are very much important. Amid a lot of constraints, there is a light of hope: negotiations have been made or are in progress with countries like Russia, Malaysia, Dubai, Japan for opening up opportunities as new promising export makes for knit products. This is very much important to take the advantage of market access to such countries through proper planning and nursing.
We can note with a great deal of confidence that if the afore-mentioned proposals and recommendations are properly acted upon, the rising trend of our knit textile sector will become sustainable. This will make it then possible to implement the 'Vision-2021' and 'Digital Bangladesh', as has been envisioned by Prime Minister Sheikh Hasina, provided effective arrangements for proper development of knit textile sector is ensured through proactive policy support.
The writer is the managing director of Rahman Knit Garments Ltd. He can be reached at info@rkgltd.com
In the past Narayanganj used to produce knit fabric and garments only for use as under vest (genji) in domestic purpose only. But export quality knit goods are produced in Narayanganj. More than 80% of total knitwear exports from Bangladesh and holding its unique quality image to the several countries of the world.
In 1984 only three business men of Narayanganj initiated knitwear export by exporting some T-shirts. By this time, more than 1800 knit garment factories are functioning in Narayanganj. By giving the pace of direct and indirect employment to 1.2 million (12 lakh) employees, this industry exported US$10 billion in the last fiscal year (FY). This target has been fixed at $12 billion for the current FY.
The contribution of garment industry to the total export earning of our country is 80%. The government should pay more attention and should be pro-active for the development of this labour intensive industry. It has to ensure adequate supply of electricity and gas.
At present, the number one problem for the textile sector is the shortage of energy. The major supply of energy for our factories comes from gas-driven generators. But it is to be regularly noted that the production of 60% factories is being hampered tremendously due to severe shortage of gas supply. As an entrepreneur, I think, if our government imposes the cylinder system for household use of gas like other neighbouring countries, at least 50% of existing gas supplies will be saved from this purpose. This will then be possible to be added to supplies for industrial production.
Transportation and port facility are the most important preconditions for economic and industrial development of a country. Our country is far backwards in this respect. Development of industrial sector will be a far cry if the government does not take prompt and pragmatic steps to help address such issues. In addition to these, we have to be more attentive to the implementation of compliance requirements for the factories and to upgrade the living standard of the workers. Otherwise, the bright prospects of textile/RMG sector will be blighted sooner rather than later as it was our previous experience with the jute sector.
To survive in competition with the competitor, countries, there is no alternative to fixing the rate of interest on bank credits/loans within single digit. Incentives should be given at the rate of 10 per cent for all types of export-oriented units against their respective export receipts. Bangladesh is going to be mostly affected by the global climate change factor. So we have to be more careful to save our environment from pollution by the factories. Every factory should obviously run under effluent treatment plant (ETP).
But ETP is an expensive infrastructure. Here the government should take the responsibility to help set up zone-wise central ETP to purify centrally the extracts from all the factories in a certain zone and can take the bill from all of them at a rate, to be filed by it, on the basis of per cubic meter of water like that of gas bill.
The new markets for knit products should effectively be explored. The prospective countries in which our knit products are yet to be introduced should be identified. Our embassies and high commissions in those countries can arrange useful trade fair with the cooperation of the chamber and the relevant ministry of those countries. Through negotiations with different countries, arrangements of exports under zero tariff facility are very much important. Amid a lot of constraints, there is a light of hope: negotiations have been made or are in progress with countries like Russia, Malaysia, Dubai, Japan for opening up opportunities as new promising export makes for knit products. This is very much important to take the advantage of market access to such countries through proper planning and nursing.
We can note with a great deal of confidence that if the afore-mentioned proposals and recommendations are properly acted upon, the rising trend of our knit textile sector will become sustainable. This will make it then possible to implement the 'Vision-2021' and 'Digital Bangladesh', as has been envisioned by Prime Minister Sheikh Hasina, provided effective arrangements for proper development of knit textile sector is ensured through proactive policy support.
The writer is the managing director of Rahman Knit Garments Ltd. He can be reached at info@rkgltd.com