'Conspiracy' glass ceiling: RMG breakthrough
PRIME Minister Sheikh Hasina has alerted all concerned against 'conspiracy' at home and abroad to harm Bangladesh's highly prospective garments sector. Quarters looking unkindly on our ranking as the second largest exporter in the global apparel market are at work to pull us down.
The occasion was the Apparel Summit last week which concluded on a very positive note. Bangladesh's quest for reaching the $ 50 billion mark in garments export by 2021 received encouragement in a constructive face-off between our garments exporters and manufacturers and the foreign buyers, brands and Accord and Alliance minders.
When the prime minister says something, it is taken seriously. And it should be because she is privy to information and trend analysis that others may not have had access to. Interestingly though, her important remark has gone off the radar sooner than one had expected it would. Perhaps, political overtone was read into her observation at the summit; but some garment sector leaders do nod at her flagging off the concern.
The prime minister has been only discreet not to specify the quarters that have been scheming to damage our reputation. Garment sector leaders tend to hold the view that compliant industries have been targets of labour disturbances, alleging incitement from the weaker factories.
Also they say that adverse news about the sector gets disseminated abroad from various rights groups and lobbying sets in to highlight the downside of the sector. The blame-game apart, there is little denying the fact that so far the industry has largely thrived on the exploitation of the workers. Now with donor, buyer and foreign consumer pressures being exerted on the employers, remunerative salary of workers comparable to that in other competing countries appears within reach.
After Tazreen and Rana Plaza, improvement of working conditions and safety standards for the workers looks attainable as well.
But the prime minister's pointer should not get lost on us. It merits dispassionate dissection through the lens of reality on the ground. United States is the single largest importer of Bangladesh apparels, a basket worth $ 5 billion. US buyers, brands and minders at the summit have sounded upbeat in doing business with Bangladesh, so the US is not on the list.
India has a $ 30 billion worth of internal garment market. Its 45 million-strong middle class can buy our products. The strong points about India are the low transportation cost and accessibility to foreign brands flocking to India to buy garments. We couldn't take advantage of the 46 items listed for duty-free access to India, largely because of non-tariff, regional barriers, not excluding visa restrictions, as some would like to point out. A top garment sector leader chipped in to say that 30 Bangladeshi factories having supplied apparels to Indian Lotus brand have not been paid yet. Overall, options are there to be taken through vigorous economic diplomacy and synergy of interests.
Garment industry has come a long way in forming backward linkages. It is almost self-sufficient in accessories, washing materials, embroidery, dyes and chemicals. In the knit category we import 20%.
It is in forward linkages that we face a big deficit in fashions and designs. That is where the newly inaugurated Apparel Excellence Centre can play a useful role.
One strategic move, as Salam Murshidi, the President of the Exporters Association, suggested to me could be for Japan to set up a composite textile industry to meet the demand for fabrics.
But we need a robust pricing support from the buyers. A dozen shirts sold at $ 26.50 ten years back. The cost of production has increased at least by 15% to 20% since; yet the same price is being persisted with. We have been promised stepped up orders but along with this should come about a price notch-up.
The China plus is being touted for the competing countries, a prospect that comes about following China going high-tech in garment industries. Bangladesh is not the only candidate, the list including Cambodia, Myanmar and Vietnam. But we can be a strong contender. That, not only in spite of Tazreen and Rana Plaza but because of them, the latter making us wiser and resolute to push ever newer borders.
As for the prime minister, she has to stand the strain of being right all the time, as Peter Ustinov so imaginatively configured.
The writer is Associate Editor, The Daily Star.
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