Small garment makers stand to benefit

Badrul Ahsan | Published: March 10, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The government has decided to issue certificates to small garment makers, allowing them to export to south Asian countries at lower duty, a senior official said.
According to the existing export policy, Export Promotion Bureau (EPB) under the ministry of commerce issues SAFTA certificates only to the member factories of BGMEA and BKMEA. SAFTA certificates allow exporters to get duty benefits while shipping products in eight south Asian countries.
The EPB, at a recent meeting, has decided to issue such certificates in favour of smaller apparel makers, helping them to foray into the neighbouring countries, where demand of low-cost Bangladeshi garment items is growing.
"Our study shows that there is a huge demand for low-cost Bangladeshi garments in our neighbouring countries, especially in India.Â Currently, smaller factories can't export because they don't have the SAFTA certificate. This is a big hurdle," a director of EPB told the FE preferring anonymity.
"We hope our exports to the neighbouring countries will increase manifold if we can begin issuing the certificate," he added.
According to the official, the smaller garment factories mainly produce their garment by using wastage and cut pieces of big garment factories, which make those items less-expensive.
The smaller factories mainly make vest, T-shirt, shorts, shirt, bottom and other low cost basic garment products.
Small garment factory owners have hailed the government's decision, saying that the decision has emerged as "lifeline" for them.
"There are huge demands of our low cost items mainly to Nepal, Bhutan and more than ten to twelve estates of India but for lack of certification we could not do well so far. Present decision of the government would boost our export significantly," Lokman Hakim, who owns Bizli Fashion at Narayanganj, told the FE Monday.
"As our raw materials are mostly wastage and cut-piece, we can sell at the lowest price," he added.
While production cost in smaller factories is cheaper, they cannot take the advantage due to lack of strong financial footing and logistic support, said Abu Abdulla, an owner of Bangla Fashion.
"We're not eligible for becoming members of BGMEA or BKMEA. We're not financially well off. So, we can't utilise our potential," he said.
"Our raw materials are mostly wastage and excess fabrics of big garment factories and workers also contractual. Our establishment is also not so strong which bars our factories to be a compliant one," he added.
However, BGMEA and BKMEA leaders expressed their concern over the compliance situation in such small garment units.
"It's good that the government has come forward to providing policy support to the small entrepreneurs but the government cannot ignore the issue of minimum compliance in these factories," president of Exporters' Association of Bangladesh Abdus Salam Murshedy told the FE.
"If an accident occurs in these factories, none will take the responsibility. If these factories are members of the BGMEA or BKMEA then the associations would follow-up their activities and safety issues would taken care of," he added.
President of BKMEA A.K.M. Salim Osman also voiced same concern and said the government could provide policy support to these factories in making them members of the associations rather than only providing clearance to export by passing the existing practice.
He also urged the government to make strict follow-up to these factories so that the units can maintain minimum compliance in their factories.
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