Accessories - Bangladesh Business News

How to make the Bangladesh apparel industry sustainable

BBN Desk — Wed, 16 Oct 2019 04:11:56 +0000

Dhaka, Bangladesh (BBN) - The second edition of the Sustainable Apparel Forum (SAF), scheduled to be held in Dhaka on November 05, is aiming to make the apparel and clothing industry of Bangladesh more sustainable.

"Sustainability is not an option but a must for the Bangladesh apparel industry. So, the SAF aims to add pace to the sustainability momentum and drive discussions to that end,” Mostafiz Uddin, a key organizer of the forum said during a press conference in Dhaka on Monday, reports SPORTSWEAR INTERNATIONAL.

The SAF is being organized by the Bangladesh Apparel Exchange (BAE) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) with support from the embassies of the Netherlands and Sweden, H&M, Better Work Bangladesh and C&A Foundation.

Mr. Uddin, founder and CEO of the BAE, said the second SAF is going to be the biggest event in the history of the Bangladesh apparel industry.

This is high time for the Bangladesh garment industry to demonstrate its determination to make the industry sustainable, diplomats and business leaders said while explaining the necessity for sustainability at the press conference.

A sustainable readymade garment sector will help ensuring economic growth, job creation and social progress of Bangladesh, they added.

GJ Harry Verweij, ambassador of the Netherlands in Bangladesh, said nobody wants to buy products that are made by children or that seriously harm the environment.

“People expect products to be responsibly sourced. People feel they have a right to fair products, produced without human rights violations and environmental damage,” the diplomat explained.

Apparel consumption is set to increase by 65 per cent by 2030 globally when the population will go up by 16 per cent, creating huge business potential for Bangladesh’s garment industry, according to Ziaur Rahman, H&M’s country manager for Bangladesh, Pakistan and Ethiopia.

“Environmental pollution will appear as a big challenge then, as it is spreading at the same rate of the global apparel consumption,” the H&M official added.

Mr. Rahman also said that his company had already asked all of its suppliers and manufacturers to be more aware of the sustainability of the fashion business.

Bangladesh has already built up many world-class green garment factories solely for sustainability of the business and environment, not under any buyer’s prescription, Rubana Huq, president of the BGMEA, said.

“For me sustainability is not only environment, it is very much about sustainable factories, labour practice and of course sustaining and subscribing sustainable environment prices,” the BGMEA chief added.

Charlotta Schlyter, Sweden’s ambassador to Bangladesh, and MA Rahim (Feroz), vice-president of the BGMEA also spoke on the occasion.

The SAF will include a series of panel discussions on critical issues such as water sustainability, actions to combat climate change, transparency and responsible purchasing practice among others where more than 50 speakers from home and abroad are expected to share their expert opinions, according to the organizers.

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H&M encourages suppliers to pay workers digitally

BBN Desk — Thu, 09 Mar 2017 03:23:54 +0000

Dhaka, Bangladesh (BBN)- Swedish retailer H&M has announced it would encourage its suppliers to pay their workers through mobile money or other digital forms to improve the livelihoods of its workforce, enhance transparency and cut factory costs.
The move came following the company’s joining the ‘Better Than Cash Alliance’, a United Nations-based partnership of governments, companies and international organisations accelerating the transition from cash to digital payments, according to a statement issued by the Alliance.
“Digital payments are an efficient and scalable way to improve the lives of the employees of our suppliers. They offer a faster, safer and more transparent way to receive their salary, increase financial inclusion and support women’s economic independence,” Gustav Loven, Social Sustainability Manager at H&M group, said in the statement.
“Also, for our suppliers, paying wages digitally can generate savings, increase security and provide more accurate data on wages,” it quoted Gustav Loven as saying.
“H&M group is taking a bold step in recognising how cash-heavy supply chains limit efforts to empower workers and prevent companies from increasing transparency. And, it’s inefficient,” said Ruth Goodwin-Groen, Managing Director of the Alliance.
“H&M group’s leadership will help inspire other companies in the industry, and beyond, to make the shift to digital payments and contribute to inclusive growth, as well as to the Sustainable Development Goals, in emerging markets.”
As most part of the benefits will be realised by female workers, this move is a prime example of a corporation working to achieve the SDGs on gender equality (SDG-5) and decent work and economic growth (SDG-8).
Some 65 per cent of the 1.6 million people employed along H&M group’s supply chain including in Bangladesh were women, many of them with limited access to the financial services they need to create a better life for themselves and their families.
H&M group joins 55 other Better Than Cash Alliance members, and will have access to the knowledge and technical expertise offered by the Alliance and its members to accelerate the shift to digital payments, helping to advance economic growth and expand financial inclusion.

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China to start cotton reserve auctions this month

BBN Desk — Sat, 04 Mar 2017 05:10:17 +0000

Washington, DC (BBN)- The Chinese government is expected to start sales from its cotton reserves on the sixth of this month and to continue offering around 30,000 tonnes a day until the end of August 2017.
More cotton may be put up for auction if sales are strong and market prices rise, according to the International Cotton Advisory Committee (ICAC).
Last year, around 2.6 million tonnes were sold through the end of September 2016. Assuming a similar volume is sold this year, the total volume held by the Chinese government will reach 6 million tons by the end of 2016/17.
China’s total stocks, including those in the private sector, are forecast to reach 9.3 million tonnes at the end of 2016/17, accounting for 53 per cent of world stocks, the ICAC said in its latest report.
World ending stocks are expected to decline by 7.0 per cent to 17.9 million tonnes in 2016/17.
In 2017/18, world cotton consumption is projected to exceed production by 1.2 million tonnes and stocks are expected to decline for the third consecutive season to 16.7 million tonnes.
China’s ending stocks could fall by 19 per cent to 7.5 million tonnes, accounting for 45 per cent of world stocks at the end of 2017/18.
This would mark the first season since 2011/12 that China’s stocks account for less than half of world inventories.
World ending stocks outside of China are forecast to grow by 7.0 per cent to 8.0 million tonnes, which could place downward pressure on prices later this season.
Global cotton production is forecast to grow by 23.1 million tonnes on a planted area of 30.4 million hectares in 2017/18.
India’s cotton production is projected to rise by 2% to 5.9 million tonnes, as area expands by 7.0 per cent to 11.2 million hectares.
China’s cotton production may increase by 2.0 per cent to 4.8 million tonnes, but will greatly depend on whether a subsidy is provided this year.
While high cotton prices relative to competing crops is likely to lead to a large increase in planted area expected in the United States in 2017/18, production is forecast to rise by just 1.0 per cent to 3.7 million tonnes.
Assuming normal weather patterns, the harvested area is projected to expand by 3.0 per cent to just under 4.0 million hectares. Pakistan’s cotton production is forecast to grow by 11 per cent to 1.9 million tonnes.
Its cotton area is projected to expand by 3.0 per cent to 2.5 million hectares as high prices this season encourage farmers to plant, and the average yield may grow by 8.0 per cent to 736 kg/ha as the crop recovers from pest pressure.
After declining by 1.0 per cent to 24 million tonnes in 2015/16, world cotton consumption is expected to remain stable in 2016/17.
Given the strong demand this season and anticipated world economic growth in 2017 and 2018, world mill use is forecast to increase by 1.0 per cent to 24.3 million tonnes.
China’s consumption and share in the world total declined continuously from 2010/11 to 2015/16, when it reached 7.4 million tonnes. While its mill use is forecast to grow by 2.0 per cent to 7.6 million tonnes in 2016/17 and by 1.0 per cent to 7.7 million tonnes in 2017/18, its world share of cotton consumption is likely to remain at 30 per cent.
Mill use in India is projected to decline by 3.0 per cent to 5.1 million tonnes in 2016/17, but is forecast to recover by 1.0 per cent to 5.2 million tonnes in 2017/18.
Consumption in Bangladesh continues to grow due to strong textile exports, with its mill use likely to rise by 5.0 per cent to 1.5 million tonnes in 2017/18. Mill use in Vietnam has more than doubled in the last five years from around 500,000 tonnes in 2012/13 to an expected 1.2 million tonnes in 2017/18.
World trade is expected to expand by 3.0 per cent to 8 million tons in 2017/18.
China’s import volume is expected to rise by 11.0 per cent to 1.1 million tonnes in 2017/18 as its mill use continues to outpace its production.
Bangladesh’s imports are projected to rise by 3.0 per cent to 1.5 million tonnes in 2017/18, while Vietnam’s imports are forecast to increase by 7.0 per cent to 1.24 million tonnes.
The United States is expected to remain the world’s largest exporter and its volume is forecast to rise by 5.0 per cent to 2.9 million tonnes in 2017/18.
Exports from India, the world’s second largest exporter, are projected to grow by 3.0 per cent to 990,000 tonnes.

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Denimsandjeans Bangladesh expo ends with high hopes

BBN Desk — Fri, 03 Mar 2017 02:02:06 +0000

Dhaka, Bangladesh (BBN)- The 7th edition of Denimsandjeans Bangladesh ended in the capital Thursday evening with high hopes to provide hi-fashion denim products with a lower cost to attract global buyers.
Exhibitors as well as buyers expressed their satisfactions over the expo, saying that it will help creating a platform for denim stakeholders and will make Bangladesh as one stop sourcing platform for denim industry.
Bangladesh has become a major hub for sourcing trendy denim products for international retailers for its competitive pricing, they observed.
“We’ve received very good response from the global brands and retailers as they think Bangladesh is a nice place to source denim at reasonable prices and will lead the global denim industry very soon,” Sandeep Agarwal, Founder of Denimsandjeans.com, said.
He also said: “Our motive is to showcase the potential of Bangladeshi Apparel and Textile Industry to the world by organizing such events.”
About 28 companies from countries including Bangladesh, Turkey, India, China, Germany, Spain, Brazil, Pakistan, Hong Kong etc took part in the exhibition to showcase their denim collections, new technologies, innovations and accessories.
The expo with a new theme –‘Denim Mashup’– focused the latest trend in denim where embellishments, embroideries, sequins, patches, paint etc are used in different combinations to produce visually exaggerated hi fashion denims.
The ‘Denim Mashup’ has been a subtle trend over many years now and we now see its strong resurgence across multiple brands worldwide from luxury brands like Gucci to fast fashion retailers like Zara and H&M, all are taking up this as the next cool denim trend in 2017.
Denimsandjeans.com, a website dedicated to the world denim industry since 2007, organised the show aiming to expand the footprint of denim and denim products made in Bangladesh.

The 8th edition of Denimsandjeans Bangladesh will be held Radisson Blu Water Garden Hotel in Dhaka on October 04-05, 2017 and the 2nd edition of their Vietnam show is scheduled on June 7-8, 2017 at Gem Center, Ho Chi Minh City, Vietnam.

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Denimsandjeans Bangladesh expo opens to attract global buyers

BBN Desk — Wed, 01 Mar 2017 06:35:15 +0000

Dhaka, Bangladesh (BBN) - The 7th edition of Denimsandjeans Bangladesh began in the capital Dhaka on Wednesday aiming to attract global buyers through showcasing latest jeanswear and accessories with a lower cost.
The expo with a new theme –‘Denim Mashup’– is focusing the latest trend in denim where embellishments, embroideries, sequins, patches, paint etc are used in different combinations to produce visually exaggerated hi fashion denims.
This trend is being taken up by global brands like Gucci, D&G, Tommy Hilfiger, Wrangler and many others. The whole show will be decked up in the ‘Denim Mashup theme.’
The ‘Denim Mashup’ has been a subtle trend over many years now and we now see its strong resurgence across multiple brands worldwide from luxury brands like Gucci to fast fashion retailers like Zara and H&M, all are taking up this as the next cool denim trend in 2017.
"Bangladesh has strengths in apparel industry duly supported by textile base which no other Asian country has,” Sandeep Agarwal, Founder of Denimsandjeans.com, said while explaining the position on the country.
Bangladesh is the largest exporter of denim jeans to Europe -- even more than China, he said, adding that Now Bangladesh is exporting jeans in more than double the quantity of China to the EU.
“We’re trying to bring some of the most important denim personalities of the globe through organizing the expo and help in further focus on the denim industry in Bangladesh and its great potential,” Mr. Agarwal noted.
About 28 companies participating from countries including Bangladesh, Turkey, India, China, Germany, Spain, Brazil, Pakistan, Hong Kong etc are taking part in the exhibition to showcase their denim pants, fabrics and latest accessories.

The Denimsandjeans team is recreating the theme using products from some of the key global denim suppliers and brings them at Radisson Blu Water Garden Hotel on March 1-2.
Informative Seminar by Dr. Dilek Erik from Turkey on the topic – “Studying Lifestyles and Creating Story to Sell Denims” and Presentation by Mr. Jordi Junai on the topic - “Jeans supply opportunity in US market” and couple of workshops on global denim innovations add further zing to the show.
Besides, the Denimsandjeans brings out the ‘Denim Quiz’ for the students of fashion universities of Bangladesh in its Seventh Edition on March 01 to enhance their denim knowledge.
This is a special event for the students of the participating universities – BUET, SMUCT and NIFT –as they will be able to compete with each other on their denim knowledge and their competition will be transmitted globally through Denimsandjeans Facebook Livecast.
The idea behind the event is to encourage the students to research more on denim subjects and get deeper knowledge - which will help them in their careers as well.
Such Quiz is FIRST of its kind held in Bangladesh to promote the knowledge of Bangladesh’s students.
Denimsandjeans has been involving the students of Bangladesh’s fashion universities in their various editions.
Earlier, the Denimsandjeans had also encouraged the students to make a denim collection based on High Fashion theme and selected pieces were showcased on the runway in front of global audience including the Diesel team from Italy.
The show will be opened during 11.00 AM to 7.00 PM (BST) and the entry is through invite only. For invitations, you can register here -http://www.bdshow.denimsandjeans.com/invite.php.

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Bangladesh: The near-boycott of international buyers caused a drawback

BBN Desk — Tue, 28 Feb 2017 03:19:29 +0000

Dhaka, Bangladesh (BBN) - Until shortly before its start, the Dhaka Apparel Summit was on the brink: fashion companies like H&M, Inditex (Zara), C&A, Next and Tchibo, which account for billions of US dollars garment products purchases from Bangladeshi manufacturers annually, announced early the last week that they would not take part in the summit as a mark of protest against the arrest and harassment of workers.
But in the end the companies changed their minds and took part. “The retailers have finally changed their decisions as the government assured them that steps have been taken for the release of the detained workers and worker leaders, who were arrested at Ashulia for their alleged involvement in labour unrest in December 2016,” Mostafiz Uddin, a organizer and Founder of the Bangladesh Denim Expo, told the SPORTSWEAR INTERNATIONAL on Sunday.
“Actually, we have tried to create a platform through organising the summit to find out ways of coping with the upcoming challenges for the better future of country's apparel sector,” Mr. Mostafiz explained.
The majority of the 35 Bangladeshi unionists and garment workers arrested since December last year have been released, and the remaining should be released shortly, according to a statement, issued by IndustriALL Global Union on Friday.
The agreement was reached following an international campaign against the Bangladesh government’s crackdown on the labour movement, led by IndustriALL Global Union and UNI Global Union.
A tripartite agreement was reached on 23 February between IndustriALL Bangladesh Council (IBC), the Ministry of Labour and the BGMEA, providing the release of the majority of the arrested trade unionists and garment workers.
So, Prime Minister of Bangladesh Sheikh Hasina explained while inaugurating Dhaka Apparel Summit-2017 in the capital on Saturday: "Huge funds are required to overhaul the factories. So, various brands and buyers can come forward to assist the Bangladeshi factory owners.”

Highlighting the government's steps in developing the sector, Sheikh Hasina said a number of measures have already been taken at the international level to make the sector safe, according to the SPORTSWEAR INTERNATIONAL, a Germany-based international magazine, report.
"Under the initiative, 3,869 factories have been inspected. Among those, faults have been found in only 39 factories and those were shut down. The remaining factories are being renovated to improve those safeties," she noted.
The premier also stressed diversifying products and expanding markets to boost export earnings.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in association with Bangladesh Apparel Exchange (BAE) organised the single day summit with the theme 'Together for a Better Tomorrow'.
The aim of the summit is to explore priority areas to turn Bangladeshi garment industry into a sustainable sector. The summit featured discussions on how to establish a more sustainable apparel supply chain and focused on setting the next course of action for achieving the US$50 billion export goal by 2021.
At the second edition of the summit held at Sonargaon Hotel in Dhaka, garment makers, business leaders, researchers, diplomats, ministers and other stakeholders discussed the future roadmap of Bangladesh's apparel sector.
They suggested all stakeholders, mainly global clothing brands and manufacturers, work together to ensure compliance, better prices and technology up-gradation and enhance productivity.
The speakers also observed that Bangladesh Taka (BDT) has become too much overvalued over the years and some depreciation against the US dollar (USD) is necessary for making the country's exports more competitive.
US Ambassador to Bangladesh Marcia Bernicat said although significant progress has been made in terms of safety inspections and remediation of readymade garment (RMG) factories, mediation effort has stalled especially in factories outside the purview of relevant agencies like Alliance for Bangladesh Worker Safety or The Bangladesh Accord.
"All RMG stakeholders must reinvigorate their effort to establish a consistent and sustainable inspection and enforcement regime," she noted.
Product diversification and shorter lead time to ship products to the export desalination is one of the keys to grow export earnings of Bangladesh, according to Shwapna Bhowmick, country head of Marks and Spencer in Bangladesh and Myanmar. “The manufacturers have to come out of their traditional thinking.”
About the worker rights, Ambassador of the Netherlands to Bangladesh Leoni Margaretha Cuelenaere said the workers should be able to make their complaints without risking their job. “They should be free to organise themselves and exercise their rights. This is a precondition for a healthy working environment.”

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Textiles machinery expo begins in Bangladesh

BBN Desk — Fri, 24 Feb 2017 17:16:20 +0000

Dhaka, Bangladesh (BBN)- A four-day 'Dhaka International Textile and Garment Machinery Exhibition 2017 (DTG 2017)' began in Dhaka on Thursday to create a common platform for facilitating the country’s apparel and clothing sector.
State Minister for Textiles and Jute Mirza Azam formally inaugurated the 14th 'DTG-2017' exposition at Bangabandhu International Conference Centre (BICC) in the capital Dhaka.
Bangladesh Textile Mills Association (BTMA) president Tapan Chowdhury, its vice president Hossain Mehmood and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) vice president Mansoor Ahmed, among others, were present at the inaugural ceremony.
The BTMA, Yorkers Trade and Marketing Service Co in Hong Kong and Chan Chao International Co in Taiwan are jointly organizing the fair.
More than 1,000 companies from 33 countries are taking part in the exposition with their garment and textile machinery and technologies.
The companies include Barudan, CTMTC, Fong's, Groz-Beckert, Karl Mayer, LMW, Loepfe Graf, Lonati, M&R, Oerlikon, Pai Lung, Picanol, Rieter, Santoni, Shima Seiki, Stall, Tajima, Terrot, Thies, Toyata, Zimmer and Truetzschler.
The countries are Austria, Bangladesh, Belgium, Brazil, China, Czech, Denmark, France, Germany, Hong Kong, India, Indonesia, Ireland, Italy, Japan, Korea, Malaysia, Netherland, Pakistan, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the United Kingdom, Vietnam and the United States.
'DTG-2017' can be an ideal forum for the suppliers of machinery and the buyers to make contact and source their desired plants, BTMA President Tapan Chowdhury said.
He also said local entrepreneurs will get opportunities to visit latest machinery and technologies at the fair.
Mr. Chowdhury also said Bangladesh aims to increase the volume of its ready-made garment exports to US$ 50 billion by 2021. "We have to turn this ambition into reality through well-designed and co-oriented approaches towards investment and other business initiatives.”
Ever since its inception, the DTG has been renowned for its high turnout of international exhibitors and trade visitors. It is widely seen as a must-visit, leading textile and garment machinery fair in Bangladesh.

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Two garment factories declared safe in Bangladesh

BBN Desk — Sat, 30 May 2015 06:45:27 +0000

Dhaka, Bangladesh (BBN)-Two garment factories in Bangladesh have became the first to be declared safe under a scheme set up to prevent a repeat of one of the world's worst industrial disasters.
The owners of the plants on the outskirts of the capital Dhaka have implemented all the measures needed to make them safe for workers, according to a statement the Accord on Fire and Building Safety in Bangladesh released on Thursday.

The Accord is a grouping of around 200 European retailers including H&M, Primark and Tesco that got together to try to improve safety after the collapse of the Rana Plaza in 2013, reports the Press Trust of India.
The grouping's chief safety inspector Brad Loewen said the declaration was a milestone for Bangladesh's USD 25 billion garment industry.
But unions in Bangladesh say it is taking too long to make the country's thousands of garment factories safe for workers.
It is more than two years since the Rana Plaza -- a nine-storey garment factory -- collapsed due to shoddy structure, leaving at least 1,138 people dead.
The disaster triggered international outrage and put pressure on the Western brands using the factory to improve the woeful pay and conditions of Bangladesh's garment workers.
Some 2,500 factories have been inspected since the tragedy, but global labour group IndustriALL said last month that safety upgrades were running behind schedule and none were considered "100 per cent safe".

Bangladesh’s garment sector set to be safer

BBN Desk — Sat, 23 May 2015 10:30:12 +0000

Dhaka, Bangladesh (BBN)-Bangladesh’s ready-made garment industry is set to be safer as all 1500-plus factories covered under the accord have been inspected for fire, electrical and structural safety.
The positivity is peeping through the door of the RMG sector of the country two years after global garment brands and retailers and two global unions and their national readymade garments affiliates signed an unprecedented agreement to make garment factories safe in Bangladesh.
Many safety issues were identified at each inspected factory, Bangladesh Accord said in a recent statement.
“Fixing all these hazards is a massive amount of work for the RMG industry, but safety remediation work at the inspected factories is underway,” the statement said.
Fibre2fashion adds: There has been especially good progress on electrical remediation which is positive as most factory fires are caused by electrical hazards.
As a result, we have helped prevent fires in factories covered by the Accord,” said Brad Loewen, chief safety inspector of the Accord.
“We are pleased to also report that we have verified the first fully remediated factories where all fire, electrical, and structural safety corrective actions from the initial inspections are complete.”
With more than 200 company signatories and 1500 factories covered by the agreement, the Accord had embarked on a large scale effort to identify and resolve all major safety risks in these factories.
The initial inspections by the Accord have brought the urgency to improve workplace safety in the Bangladeshi RMG to the fore.
“Identifying the issues and developing plans to correct them is the first step. In the remaining three years of the Accord we will work with our signatories and suppliers to complete the remediation at all factories and ensure that a functioning safety and health committee capable of maintaining and monitoring safety issues on a day-to day basis is in place at every Accord listed factory.
This requires a concerted effort from the factories with support from the Accord signatory companies and Accord union colleagues.
The Accord team stands ready to support all parties if we hit obstacles in this road ahead,” said Rob Wayss, executive director of the Accord.
The Accord continues to work intensively with its company and union signatories, workers, factory owners and their associations and the Government of Bangladesh- National Effort to realize the common goal of a safe and sustainable RMG industry in the country, the statement said.

Apparel exports growth declining, need support from govt: AEPC

BBN Desk — Wed, 20 May 2015 08:48:00 +0000

India (BBN)-Apparel Exports growth pattern has fallen in April 2015 in compare to the last year, the apex apparel exporters' body - Apparel Export Promotion Council (AEPC) said in a press release on Tuesday.
The garment manufacturing industry believes that the Government will take necessary steps for boosting the exports, reports SME Times.
Chairman AEPC Virender Uppal in his reaction to the release of exports data for Readymade Garment (RMG) for the month of April 2015 stated that, "The rate of growth of RMG in April 2015 has fallen from 13.4 percent (April 2014) to 9.24 percent (April 2015) in dollar terms. In rupee term the growth has fallen from 24.7 percent to 13.58 percent, respectively.
The overall exports in April 2015 for RMG are USD 1444 million (Rs 9063 cr).
It is to be noted that the overall exports (all commodity) has fallen from USD 25.63 billion to USD 22.05 billion registering a growth of minus (-) 14 percent.

Chairman AEPC, applauded the resilience and hard work of Indian Apparel Exporters which could register a positive growth of 9.24 percent despite the subdued global economic cues resulting in weak demand and most exportable commodities registering negative growth.
Uppal, emphasized, there has been a vacuum in a policy support in the RMG manufacturing export industry.
He said, "In the recent FTP announcement, garment export sector got 2 percent reward only on 239 HS lines out of 398 lines.
The service sector got 5 percent scrip under Service Sector India Scheme. AEPC recommendations were for announcement of 5 percent Duty Credit Script for major market of USA, European Union etc. and for other countries a flat rate of 2 percent was recommended by AEPC."
No Merchandise Exports from India Scheme (MEIS) has been announced to Latin America, West Asia, CIS Countries, Africa and Oceania countries.
The non-traditional markets which constitute around 35 percent share in India's garment exports are poised to receive a setback due to withdrawal of the benefits of the Chapter 3 benefits.
The EU market constitutes 41 percent of the India's RMG exports. Market conditions in major markets like EU, continues to be subdued.
Further, India is facing duty disadvantage of 9.6 percent compared to competing countries like Bangladesh and Pakistan who are having zero duty access under LDC/GSP+ status under EU GSP Scheme.
The USA constitutes 21.7 percent of India's RMG exports and the market condition in USA is still on the path of gradual recovery.
The prospects of considerable improvement in the market are rather limited due to competition from countries like Vietnam, Mexico which have zero duty access under preferential treaties with USA.
Highlighting the demand of the garment manufacturing industry Chairman AEPC has requested Government to look into the following demands for boosting the exports of RMG:
From budgetary announcement â€“ Inclusion of 2 percent fabric within 5 percent overall entitlement under EPC for improving fabric base under Customs Notification no. 10/2015-Cus dated 1.03.2015.

Support from Monetary Policy â€“ Announcement of 3 percent interest subvention scheme w.e.f. 1.4.2014 to partially mitigate high cost of lending, which is hovering around 11 -12 percent interest rates, as compared to 4 â€“ 6 percent in competing countries.
Support from FTP â€“ Duty Credit scrip @ 5 percent to major markets like USA, EU, Canada, Mexico, Australia, Switzerland, Russian Federation, Ireland, Brazil, China, Republic of Korea, Norway, Chile, Turkey, Saudi Arabia, South Africa & Malaysia. Simplification in landing certificates as proposed by AEPC and even for one star exporter should be considered.
For Ease of Business â€“ Actual implementation of 24 x 7 clearances of import and export be ensured by Customs.
FTA/PTA: The Government has also not given any indication about the finalization of India-EU FTA, CEPA with Canada, etc., which needs to be implemented on urgent basis so as to mitigate the duty disadvantage suffered by India vis-a-vis our competitors like Bangladesh, Cambodia, Vietnam, Pakistan etc. in the major markets.