Wednesday, January 7, 2009

Bangladesh:RMG sector uprises despite hurdles

Bangladesh:RMG sector uprises despite hurdles

Although tumultuous, last year has been quite productive for the Ready made garment sector in terms of export.

The RMG sector, one of the biggest foreign exchange earners for Bangladesh had struggled to cope with severe competition from the Chinese counter part when quota on Chinese products lapsed on January 1, last year.

Even severe labour unrest and continuous strikes in manufacturing units also deteriorated its condition. Hike in yarn prices, high input and energy cost further added to the woes of the production units.

But the good news is the RMG sector overpowered all these troubles and fetched rosy revenue by exporting to various destinations. During this period the country succeeded in exploring some new markets like Japan, Romania, Poland, South Africa and Russia. These new markets helped to curtail the impact of global financial recession.

It was a momentus moment when Bangladeshi Government gave the approval to export RMG workers to Russia in July.

In this regard Mr Mostaqur Rahman, Deputy General Manager (DGM), Noman Group told, “Although quota ended in January, we did not face any problem. Yes, input cost in the production has gone up by manifolds but it can be saved though international cost saving.”

Talking about drooping international demand for RMG, Mr Rahman stated, “Current recession has not affected us much as we are producing basic items and demand for these products will always be there.”

According to the DGM, Government will make policy very shortly for setting news factories in order to help the industry to grow further.