- Bangladesh’s Apparel Exports Climb 10.84% in FY25 Q3
Bangladesh’s readymade garment (RMG) exports increased by 10.84% year on year between July and March of FY2024-25, hitting $30.25 billion, according to figures issued by the Export Promotion Bureau (EPB).
The European Union (EU) remained the leading destination, accounting for 49.82% of all RMG shipments for the year. Exports to the EU increased to $15.07 billion, up 11.31% over the same period last year. Germany led the EU markets in imports with $3.80 billion, followed by Spain at $2.65 billion, France at $1.65 billion, the Netherlands at $1.61 billion, and Poland at $1.26 billion.
The United States, Bangladesh’s second-largest garment market, grew 17.23% year on year, with export revenues of $5.74 billion. The United Kingdom and Canada got exports totaling $3.36 billion and $963.85 million, respectively. Canada witnessed a 15.66% increase, while the United Kingdom saw a 4.14% growth.
Meanwhile, RMG exports to non-traditional markets totaled $5.12 billion over the period, representing a 6.66% increase and 16.93% of total clothing exports. The top non-traditional destinations were Japan ($960.45 million), Australia ($653.64 million), and India ($535.15 million). Exports to Mexico and Turkey also expanded significantly, increasing by 23.44% and 32.54%, respectively.
However, shipments to Russia, South Korea, the UAE, and Malaysia decreased due to war-related disruptions and altering trade dynamics. The reduction in Russia was attributed to the ongoing conflict, but the other markets indicated the need for more targeted engagement initiatives.
“Buyers now look beyond just pricing — they’re prioritising sustainability, reliability, and social compliance,” said Faruque Hassan, former president of BGMEA. “Bangladesh is ahead in all three areas, and that’s what’s driving long-term growth.”
Despite the achievements, there is concern about possible tariff increases in the United States. Discussions in Washington about slapping 37% retaliatory duties are presently on hold for 90 days. Bangladesh’s garment exports to the United States currently face levies ranging from 15% to 33%, with an extra 10% applied lately.
Knitwear led the sector’s export growth at 11.22% over the period, with woven garments following at 10.40%. Both categories performed well in traditional and emerging markets.
The results show that, while traditional destinations continue to anchor Bangladesh’s RMG sector, long-term resilience will necessitate a greater focus on diversifying markets.
Source: The Business Standard
- Bangladesh Set to Lead Global Cotton Imports in Fiscal Year 2025
Bangladesh is set to overtake China as the world’s biggest cotton importer in the 2024–25 fiscal year, according to data released by the US Department of Agriculture.
The increase in cotton imports is being driven by the nation’s strong reliance on the export-oriented ready-made clothing industry, which employs around 5 million people, the majority of whom are women.
Bangladesh, which is currently the second-largest center for the production of clothing worldwide, is anticipated to import 8 million bales of cotton this fiscal year. After China, it was the world’s second-largest importer of cotton in FY 2023–2024.
With 35% of total imports, West Africa was Bangladesh’s top source of cotton during the previous fiscal year. The United States contributed 11%, while Brazil and India were also significant providers. Bangladesh is still mostly dependent on imported cotton given its minimal domestic production, imported raw cotton is primarily spun into yarn, which is then transformed into woven and knit fabrics.
“We produce lower-end clothing that requires natural cotton, which is why our cotton imports are steadily rising,” said Anwar Alam Chowdhury Pervez, Managing Director of Evince Group. Commenting on US cotton, Mr. Chowdhury said it is competitively priced and suggested boosting imports from the US to help balance trade. “We could use our bonded warehouse facilities to store larger volumes of US cotton, which would reduce lead times,” he said. “We’re planning to talk with the Arizona Cotton Growers Association in the US to explore collaborative opportunities,” he added.
Meanwhile, the state-run Cotton Development Board (CDB) is pushing for increased domestic output through hybrid and super-hybrid farming, with the goal of producing 500,000 bales by 2030 and 1.9 million bales in 2050.
Bangladesh now produces only 200,000 bales per year, accounting for less than two percent of overall consumption. The country has 1,849 spinning mills, and demand is approaching 7.3 million bales, valued more than $3.0 billion.
Source: The Financial Express
- Yarn imports banned via land ports
The National Board of Revenue (NBR) has banned yarn imports through all land ports in the country, including Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari, whereas yarn imports via sea routes or other channels will be unaffected. However, the import of other commodities through these land ports will continue as before.
The move follows persistent demands by the Bangladesh Textile Mills Association (BTMA), which has advocated for a ban on yarn imports via land routes, mainly from India, alleging significant financial losses for local yarn producers as a result of low-cost Indian imports.
In March, the Bangladesh Trade and Tariff Commission supported the BTMA’s concerns.
In a letter to the NBR chairman, the commission advised a temporary ban of yarn imports through land ports, stressing that these facilities lack the necessary infrastructure to monitor yarn count criteria in accordance with international guidelines. Instead, the panel urged that imports continue to be made via Ports.
According to the Tariff Commission, Indian yarns, particularly those originating in India’s northern and southern regions and warehoused in Kolkata, are entering Bangladesh at significantly lower prices, undercutting domestic yarn and increasing the use of imported yarn in local textile manufacturing. The panel also noted that yarn imported through land ports is declared at lower values than that at the Chittagong Custom House.
While yarns from China, Turkey, and Uzbekistan are priced similarly to local items, Indian yarn entering via land routes is far cheaper. Local producers are apparently unable to compete.
During a pre-budget discussion at the NBR office, BKMEA President Mohammad Hatem opposed the move. “Yarn can be brought from India via land route in less time. This allows garment factories to easily manufacture products against large purchase orders. If yarn imports are stopped in this way, the cost of garment manufacturing will increase and Bangladesh will lag behind in its competitiveness in the export market.”
He questioned the reasoning behind BTMA’s demand, stating, “The argument on which BTMA has demanded a ban on yarn imports by land is not correct.” He further criticized the government for not consulting with key stakeholders in the RMG sector before making the decision.
Source: Textile Today
- UK trade unions, NGOs urge Bangladesh to improve RMG workers’ wages
Trade unions and campaigners on April 24th delivered a joint letter to the Bangladesh High Commission in London, calling for urgent action to address wages and assure trade union freedoms for workers making clothing in Bangladeshi factories.
UK trade unions including UNISON, GMB, PCS, CWU, IWGB and civil society groups such as Labour Behind the Label and War on Want, Amnesty International UK and No Sweat submitted the letter.
They also held a rally where speakers called for the interim government to urgently ensure wage reform, grow social security for RMG workers, and build support for trade union freedoms.
The event, held on the 12th anniversary of the Rana Plaza factory collapse in Bangladesh, also included a moments’ silence to honour the lives of the 1138 Bangladeshi garment workers who were killed on this date in 2013, following decades of inaction over their working conditions and rights.
In the face of uncertain trade tariffs, climate fluctuations and volatile markets, campaigners said boosting the social security situation for garment workers in Bangladesh is essential now more than ever.
“Dickensian conditions faced by workers under colonial trade policies are something many think of as a thing of the past, but Bangladesh unions are fighting every day in a system rigged to build money for fashion brands and keep workers in economic enslavement. Trump is only the latest white man to have a go at taking money from the women of Bangladesh. The Interim Government has a chance to set laws and social security that protects their workers from global bullying,” said Anna Bryher, Policy Lead for Labour Behind the Label.
In specifics, the letter highlights multiple spurious court cases still pending against tens of thousands of workers and trade unionists following the 2023 wage protests in Bangladesh. Nine of the 37 cases have been dropped but many are still standing, creating fear around participation in trade union organising and marking the continued repression of human rights in the sector, reads the letter. The letter calls on the interim government of Bangladesh to unilaterally drop the remaining repressive legal cases and take action to improve the climate for freedom of association for garment workers across Bangladesh factories.
Kalpona Akter, president of the Bangladesh Garment & Industrial Workers Federation said, “In an industry where union repression is rife, getting the cases dropped is just a first but very necessary step on the way to an industry in which workers can live a decent life off their wages and in which barriers to freedom of association are taken down. We won’t live in fear. We are calling for living wages that support our families.”
Source: The Business Standards
- Justice eludes Rana Plaza victims as trials drag on even after 12 years: 1,136 RMG workers killed in Rana Plaza collapse in 2013; Of 39 accused in murder case, only Rana Plaza owner in prison
Despite widespread national and international attention, the legal proceedings surrounding the tragedy on 24 April 2013 continue at a sluggish pace.
Every year, as this day arrives, various events commemorate the workers killed in that incident. Different labour organisations and relatives of the deceased workers demand justice. However, there is no headway in the completion of the judicial process.
Labour leaders say the case has not been resolved in over a decade due to the state’s indifference. The eight-storey Rana Plaza building collapse also left 1,169 workers severely injured. Approximately 2,500 workers were rescued alive.
Source: RMG Bangladesh
- Garment orders confirmed through Christmas season
Local garment exporters have secured enough orders from US clothing retailers and brands to keep factories going until the end of the year for the Christmas season, while the shipments are still overshadowed by the Trump administration’s proposed tariffs in response.
According to exporters, full-scale Christmas manufacturing is likely to begin in June and continue through July, with shipping to the US market beginning in August to ensure availability in stores throughout the key sales periods of November and December. These months, along with Thanksgiving and the rest of the autumn and winter seasons, are key purchasing periods for Western fashion markets.
However, most local exporters remain skeptical as they await the US’s final tariff decision. Currently, Bangladeshi products are subject to a 10% baseline tariff, whereas China faces a far higher tariff of 145%.
In this environment, exporters are likewise looking for alternative markets. Many are actively negotiating with buyers in Europe and other countries where Bangladesh has preferential or even zero tariff access. However, increasing rivalry is predicted as China and Vietnam, which have also been hurt by US tariffs, strive to extend their presence in the same markets.
Last year, TEAM Group shipped $560 million worth of clothes, with around 25% destined for the US. While Abdullah Hil Rakib, managing director of TEAM Group, remains hopeful about future export growth to the United States, he acknowledges the need to rethink strategy in light of the high proposed tariffs. He stated that following Trump’s pronouncement, a US-focused retailer came to his factory with plans to relocate orders from China, where tariffs are at 145 percent, compared to an effective 26 percent for Bangladesh, including the previous 16 percent and the 10 percent baseline.
Abdullah Hil Rakib believes US buyers would increasingly turn to Bangladesh as increased tariffs make sourcing from China and Vietnam more expensive. Although India enjoys a lower tariff rate, its manufacturing capacity is limited. Pakistan, while also facing lower tariffs, lacks the product diversity that Bangladesh offers, he added.
Pacific Jeans’ managing director, Syed M Tanvir, said he is still negotiating with US buyers for Christmas orders. Similarly, a Rupganj-based garment exporter who sought anonymity stated that his US buyers, who account for 40% of his annual exports, have not canceled or increased orders. “My US buyers neither cancelled nor increased the work orders and also did not seek any discount from me,” he said, adding that buyers remain in a “wait-and-see” position until the 90-day tariff freeze concludes. He expects order confirmations for the next season by June.
Currently, over 900 garment manufacturers in Bangladesh export clothing to the United States. Of these, roughly 25 factories have a strong presence in the American market. Bangladesh is the third-largest apparel supplier to the United States, following China and Vietnam, accounting for 9.3 percent of the country’s annual garment imports of more than $100 billion.
Source: The Daily Star
- 128 RMG factories opened, 113 closed in the last 15 months
A total of 113 garment factories ceased operations between January 2024 and March 2025, forcing over 96,000 workers out of jobs, BGMEA figures show. In contrast, 128 new factories were established and received membership from the trade body during the same period, creating jobs for 74,081 workers.
While the number of newly opened factories slightly outpaces closures, over 22,000 more jobs were lost than created. During the August 2024 to March 2025 window, 69 factories shut down, affecting 76,504 workers—highlighting an accelerating trend of closures.
Industry insiders cited multiple reasons behind the closures, including shrinking global orders, price pressures from international buyers, rising production costs, delayed payments and political changes.
Due to political changes in August 2024, some notable factories closed due to their owners’ close ties with the ousted government, which had helped them receive abnormal loans from the banks. Most of the closed factories were in the small and medium category, which lost their competitiveness long ago. Many small and medium-sized units have struggled to comply with evolving safety and sustainability standards, forcing them out of the market.
The 128 new factories established in the period indicate a shift towards consolidation and modernisation. Many of these are believed to be replacements or expansions by existing players investing in state-of-the-art machinery, green building certifications, and digital production systems. These upgraded units are also creating new employment opportunities—albeit fewer than the losses from closures, as automation reduces labour dependency.
The ongoing transformation is seen as a reflection of the industry’s transition from volume to value, industry insiders said.
Source: The Business Standards
