Monira Munni
The country's home textile and terry towel makers are struggling to survive as some of them find themselves in a difficult situation to compete with the global counterparts.
The exporters have identified price pressure from buyers for reducing the rate, less work orders, strong local currency against US dollar and rising cost of doing business in the country as reasons for their failure to be in the race.
Following the situation, at least half a dozen of home textile mills and more than 30 terry towel factories have been shut during the last couple of years, according to industry people and trade bodies concerned.
Besides, export earnings from home textile subsector fell by 2.69 per cent to $800.85 million in July-May period of the current fiscal (2018-19), according to data of Export Promotion Bureau (EPB). The earnings also fell short of the period's target by 6.14 per cent.
The country fetched $823 million from home textile in FY 2017-18.
On the other hand, terry towel, which have immense potentials to grow further and diversify, exports witnessed 24.32 per cent growth to $49.43 million during the July-April period of the current FY.
The export earnings from terry towel products declined by 4.40 per cent to $ 42.35 million in the FY 2017-18. The shipment also fell by 7.32 per cent in FY 2016-17, according to EPB data.
Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) data showed that a total of 32 terry towel factories were shut in last three to five years.
According to BTTLMEA, there are some 90 units involved in towel subsector across the country.
According to Bangladesh Textile Mills Association (BTMA), some 17 home textile mills are registered with the association having a production capacity of 556.39 million metres annually.
Local home textile exporters are facing stiff competition both in the EU and US markets with its main competitor country Pakistan, which is a cotton producing country, said Nurul Islam, chairman of Noman Group, told the FE.
On the other hand, Pakistani Rupee depreciated more than 36 per cent against US dollar in last few years whereas Bangladeshi currency has witnessed a strong appreciation, he explained.
In US market, home textile products face a high duty of 16 per cent, Pakistan remains at an advantageous position due to its own raw material and devalued currency, Mr Islam noted.
Besides, the good relation between Pakistan and USA, the formers' direct deport arrangement in New Jersey along with its other competitive edges help being competitive compared to Bangladesh, he said, adding that three to four months are needed to ship Bangladesh made products.
Noman Group alone exports $350 million worth of home textile and $150 million of terry towel products annually, Mr Islam said, adding that now they are struggling to survive whereas some five to six home textile making factories were closed in recent years.
Regarding the European Union market, he said, the EU buys more from Turkey due to a lower lead time and Pakistan also is competitive as it enjoys GSP plus facility there.
Home textile makers have sought government policy support to help them become competitive in the world market. They demanded that the government should provide 12 per cent cash incentive to attract more investment and help them sustain.
Echoing Mr Islam, BTTLMEA chairman M Shahadat Hossain said more than 30 terry towel factories, mostly small and medium-sized ones, were forced to shut down during last four to five years as they failed to remain competitive due to the price pressure.
Thousands of workers lost their jobs due to the closure at a time when the sector just started to grow with billions of taka investment, he noted.
Mohammad Kapadia, an importer of terry towel, said he mostly import the items from Pakistan and Vietnam while his import from Bangladesh has reduced.
High cost of doing business, fluctuating international cotton price and inadequate and lengthy process of getting fund have compelled his company to reducing production capacity towards closure, he said, explaining the situation of his company located in the southern region of Bangladesh.
In terry towel segment, Bangladesh exports face, hand, bath, beach, jacquard, tea, dish, glass, kitchen and surgical towels while bath mat and robe, dish clothes, kitchen gloves, draw sheet and mommy napkin also being shipped, according to BTTLMEA.
Home textiles such as bed-sheets, bedcovers, pillow covers, cushion covers, curtains, rugs, quilt, kitchen aprons, gloves, napkins and tablecloths are exported mainly to the European Union countries while some products also exported to the USA and Canada, according to the association.
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