Latest news with #BGMEA
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
Bangladesh allocates $56 mn for Jute & Textile Ministry in FY26 budget
An allocation of TK 4.8 billion (~$56 million) has been made for the Ministry of Jute and Textile for fiscal 2025-26 (FY26), Bangladesh finance adviser Salehuddin Ahmed announced yesterday while unveiling the national budget for the next fiscal. He said TK 2.32 billion is designated for operational expenses, while TK 2.48 billion is for development expenditure. An allocation of TK 4.8 billion (~$56 million) has been made for the Jute and Textile Ministry for FY26, Bangladesh finance adviser Salehuddin Ahmed announced yesterday while unveiling the FY26 national budget. Meanwhile, trade body BGMEA has applauded the government's decision to keep the source tax on exports and corporate tax for industries unchanged in the proposed budget. The revised budget for FY25 had allocated TK 4.98 billion for the ministry. Meanwhile, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has applauded the government's decision to keep the source tax on exports and corporate tax for industries unchanged in the proposed budget for next fiscal. This announcement is particularly significant for the readymade garment (RMG) sector, which faces immense pressure from domestic and global challenges, including recent US retaliatory tariffs, India's cancelled transhipments, high bank interest rates, rising wages, and frequent increases in gas and electricity prices, the BGMEA said in a press release. The budget plans to reduce the overall cost of electricity generation by 10 per cent to gradually decrease subsidies in the power sector, the BGMEA said. A decision has also been made not to raise electricity prices shortly to control inflation, which the BGMEA termed highly beneficial. Fibre2Fashion News Desk (DS)
Yahoo
23-05-2025
- Business
- Yahoo
BGMEA Seeks 3-Month Delay for India's Land Port Ban on Garment Exports
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called on India to allow for a three-month reprieve on its abrupt ban on the entry of Bangladeshi garment exports via its land ports. The association is urging Bangladesh's interim government to send a formal letter to the Indian government on their behalf, which would request for a three-month 'notification period' that would give ample time to clear the pending backlog of garments that are already set to be exported to India. More from Sourcing Journal Bangladesh, US Engage in Free Trade Agreement Talks US Ports Warn of $6.7B Bill if 100% Tariff on China-Made Cranes Kicks in India Ends Land Port Entry for Bangladeshi Garment Imports Many India-bound shipments have been waiting to be unloaded at the land ports since Saturday, when the restrictions were put in place. In an interview with Bangladesh publication The Daily Star, Asif Ashraf, a former vice president of the BGMEA, said exporters were not prepared for such a sudden ban, and are now concerned about financial impacts to their business on the shipping delays. On Tuesday, Bangladesh's commerce ministry held an inter-ministerial meeting in Dhaka with stakeholders and government officials to discuss a response to India's restrictions. 'We will not take any retaliatory steps. They've taken this step, and we will engage with them,' Commerce Secretary Mahbubur Rahman told reporters after the meeting. Rahman mentioned that a meeting at the secretary level between the two countries is being considered to resolve the issue. 'We will point out that not only Bangladeshi businesses are being affected, Indian businesses will also suffer. So, let's sit together and find a solution,' said Rahman. 'We have an established secretariat-level forum with India. Last week, we sent a letter requesting a meeting. Once we receive a response, we'll know when it can be held.' According to the BGMEA, readymade garment (RMG) exports to India reached $563 million in the first 10 months of the current fiscal year. The association says 93 percent of the garments shipped from Bangladesh to India goes through land ports. The move to block entry to RMGs, as well as limit other exports like processed foods, plastic goods and wooden furniture, will impact 42 percent of India's total inbound trade from Bangladesh, according to a report from New Delhi-based Global Trade Research Initiative. The land port ban was an apparent escalation of a series of supply chain restrictions the countries have placed on each other in recent months. In February, India implemented a 20 percent import tariff on nine varieties of knitted fabrics from Bangladesh. Two months later, the country revoked Bangladesh's access to its transshipment services, which prevents Bangladeshi exporters from shipping cargo via Indian land borders and customs stations. That service, first established in 2020, allowed Bangladeshi businesses to use Indian airports and seaports to send goods to third countries. Bangladesh has since opened a new air cargo hub at one of its major airports to pick up the slack. Bangladesh also put up some of its own supply chain barriers, clamping down on foreign imports of yarns via its land ports. Yarns can still be imported via seaports and airports, but textile mills had claimed the land ports didn't have the required infrastructure to properly vet raw materials. According to the Bangladesh Textile Mills Association, 95 percent of yarn imports come from India. In April, other imports from India including rice were restricted through the land ports, while goods like paper, tobacco and powdered milk got banned outright. Bangladesh's tit-for-tat with India comes as the south Asian country still is trying to maneuver through trade negotiations with the U.S. after the Trump administration's imposition of country-specific tariffs on April 2. Both countries agreed in principle to start Free Trade Agreement (FTA) talks this week, Rahman said. Currently, Bangladesh has a 10-percent tariff placed on all goods it exports to the U.S., but that total could hike to 37 percent—or nearly 53 percent on apparel—if a new deal isn't reached by July 9. As part of a potential deal, Bangladesh's government is considering removing import tariffs on about 100 products it brings in from the U.S. In accordance with World Trade Organization rules, the removal would apply to all countries Bangladesh imports from. These products reportedly range from raw materials for readymade garments, as well as man-made fibers and wool. They would also include items like machinery, effluent treatment plants, dialysis filters, fire extinguishers and certain arms, according to a report from Bangladesh publication The Business Standard. Officials from the National Board of Revenue (NBR) told the publication that the plans were discussed during a meeting with Chief Adviser Muhammad Yunus ahead of the upcoming fiscal year budget. In 2024, Bangladesh imported goods worth $2.2 billion from the U.S., while exporting $8.4 billion, making the U.S. Bangladesh's largest export market.
Associated Press
22-05-2025
- Business
- Associated Press
DigiProd Pass signs MoU with BGMEA: Preparing Bangladesh's Garment Supply Chain for EU Market Compliance
DigiProd Pass Ltd., Digital Architect, and BGMEA launch a pilot to implement blockchain-based Digital Product Passports in Bangladesh's garment industry MANCHESTER, UNITED KINGDOM, May 22, 2025 / / -- DigiProd Pass Ltd. and Digital Architect, signed a Memorandum of Understanding (MoU) today with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to initiate a pilot project for implementing a blockchain-enabled Digital Product Passport (DPP) system in the Bangladeshi garment industry. The MoU signing ceremony took place at the BGMEA Complex in Uttara, Dhaka, signifying a major step forward in the industry's commitment to transparency, sustainability, and alignment with international regulatory standards. The MoU was signed by BGMEA Administrator Mr. Anwar Hossain, Mr. Salauddin Sohag, Managing Director of DigiProd Pass Ltd., and Dr. Fahim Chowdhury, CEO of Digital Architect and Technovative Solutions Limited. Over the 24-month pilot period, BGMEA will onboard selected garment manufacturers and coordinate data provision and integration support. DigiProd Pass Ltd. will lead the technical development and implementation of the DPP platform, while Digital Architect will act as the local technology partner, delivering services such as Life Cycle Assessment (LCA), data collection, system deployment, training, and integration. An image of DigiProd Pass signs MoU with BGMEA The pilot initiative seeks to assess the feasibility of designing, developing, and implementing a Digital Product Passport (DPP)—a digital tool aimed at enhancing traceability and accountability throughout the garment value chain. By capturing and sharing verified data on a product's lifecycle, environmental footprint, and sustainability performance, the DPP is positioned to strengthen Bangladesh's competitive edge in the global apparel market. The urgency of this pilot project is underscored by the fact that a very significant percentage (almost 60%) of Bangladesh's garment exports are destined for the European market, making the EU the country's single largest apparel market. As such, compliance with evolving EU standards is not optional—it is essential. The DPP is a fundamental requirement under the EU's Ecodesign for Sustainable Products Regulation (ESPR), adopted by the European Parliament in April 2024, with phased implementation beginning in 2026. This legislation will mandate that textile and other high-impact products entering the EU market carry a digital passport containing data on sustainability, durability, and environmental impact. For Bangladesh, which is the second-largest garment exporter globally, embracing DPP now is a strategic move to safeguard and future-proof its access to the EU market. This pilot project's core objectives include evaluating the technical and operational viability of the DPP system, promoting transparency and traceability in garment production, supporting adherence to sustainability and regulatory standards, and training relevant stakeholders while assessing the system's potential for broader industry-wide adoption. About DigiProd Pass Ltd. DigiProd Pass Ltd. is the specialist division of Technovative Solutions Ltd, a UK research-based organisation dedicated to the advancement of innovative digital solutions to address real-world challenges. DigiProd Pass Ltd. brings proven expertise in blockchain-based product traceability and compliance systems, with experience working on EU-aligned sustainability frameworks such as Life Cycle Assessment (LCA) and Product Environmental Footprint (PEF). DigiProd Pass' established understanding of European regulatory landscapes, combined with a strong commitment to ethical sourcing and transparent supply chains, makes the company a highly relevant technology partner for Bangladesh's apparel sector, especially in preparing for evolving EU market requirements. Offering traceability from source through production and sale to end-of-life, DPPs of DigiProd Pass provide evidence of standards, compliance, environmental and social responsibility. About Digital Architect Digital Architect is a Bangladesh-based technology solutions provider and the local partner of DigiProd Pass Ltd., both divisions of Technovative Solutions Ltd, a UK research-driven organisation committed to developing cutting-edge digital innovations for global impact. As a key technology enabler in the Digital Product Passport (DPP) pilot initiative with BGMEA, Digital Architect will contribute and support the local deployment, integration, and stakeholder training essential to the success of the project. The company brings specialised expertise in Fintech and software services, alongside hands-on capabilities in Life Cycle Assessment (LCA) and sustainability data collection. With a strong focus on transparency, traceability, and regulatory compliance, Digital Architect is uniquely positioned to bridge global technological frameworks with local industry needs. Salauddin Sohag DigiPord Pass Ltd. email us here Visit us on social media: LinkedIn Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. 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Fashion Network
21-05-2025
- Business
- Fashion Network
Bangladesh targets faster textile shipments with new deep-sea port
Bangladesh, one of the world's leading textile exporters, has taken a decisive step to upgrade its trade infrastructure. At the end of April, the country signed an agreement to construct its first deep-sea port in Matarbari, located 350 kilometers south of Dhaka. The project is expected to significantly accelerate garment exports and reduce the country's dependence on regional transshipment hubs such as Colombo and Singapore. The Chittagong Port Authority (CPA) finalized the agreement with a Japanese joint venture composed of Penta-Ocean Construction Co. Ltd. and TOA Corporation. The first development phase involves the construction of a 760-meter container terminal, scheduled for completion by 2029. This terminal will be capable of accommodating large international container ships—up to 350 meters in length and carrying as much as 100,000 tons of cargo—traveling between Asia and Europe. The initial investment for this phase is 500 million euros, while the overall project is expected to cost 1.8 billion euros. In parallel, the government plans to execute major highway expansions by 2041 to reinforce the national transport infrastructure supporting the port. For years, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has advocated for this development, emphasizing its strategic value for the textile sector. The new port will streamline the import of raw materials for garment manufacturing and offer greater independence from Sri Lanka's Colombo port, which currently manages about 80% of Bangladesh's transshipment cargo. 'When we have our own deep-sea port, we'll become the priority stop for vessels,' BGMEA Vice President Miran Ali said in 2022. 'And our goods will move faster, since cargo ships will no longer need to make a mandatory stop in Colombo before heading to Europe or America.' With low labor costs positioning the country as the second-largest clothing supplier to the European Union and the third-largest to the United States, Bangladesh's textile sector remains central to its economy. The industry accounts for 80% of national exports, contributes 20% to GDP, and directly employs four million workers. Bangladesh's textile manufacturers have recently reported a wave of suspended and canceled orders from American brands in response to increasing U.S. tariffs. To counter the impact, the country is seeking to strengthen ties with the U.S. by sourcing American cotton for its textile and apparel production.
Yahoo
19-05-2025
- Business
- Yahoo
India Ends Land Port Entry for Bangladeshi Garment Imports
India has imposed restrictions on Bangladesh's readymade garments (RMGs) from entering the country via its land ports, forcing the latter's exporters to rely on longer, more expensive shipping routes. Bangladeshi cotton and cotton yarns, as well as items such as processed foods, plastic goods and wooden furniture, will no longer be allowed through six land ports in northeast India, under certain restrictions imposed by Directorate General of Foreign Trade Saturday. More from Sourcing Journal Ocean Carriers Levy Surcharges, Cut Pakistan Port Calls Amid India Trade Embargo Maersk Expects No Cost Impact From Port Fees, Assures 'Unchanged' Service Tariffs Tank China's US Exports, but Southeast Asia and India Cash In Garments will be allowed to enter India only through the Nhava Sheva and Kolkata seaports, according to the notification. According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), in the first 10 months of the current fiscal year, RMG exports to India have already reached $563 million. A whopping 93 percent of cargo shipped goes through land ports. 'Land ports provide easy access for various goods. Shipping through seaports will take significantly more time,' BGMEA administrator Anwar Hossain told Bangladesh publication The Business Standard. 'We are currently consulting with exporters to understand the full impact. Once that's assessed, we'll approach the relevant authorities to seek solutions and explore alternative channels.' Exporters rerouting goods through Kolkata would require the cargo to travel roughly 1,200 kilometers via road or rail to reach other northeastern cities closer to the Bangladesh-India border. While sending goods through land routes to India typically can take one-to-three days, the sea routes would take two weeks. According to a report from another Bangladesh publication, The Daily Star, hundreds of trucks carrying India-bound goods were stuck at land ports or forced to leave without dropping off goods in the wake of the directive. At Benapole, the largest land port in Bangladesh, at least 36 trucks carrying ready-made garments were stranded on Sunday. Bangladeshi Garment exporter Energypac Fashions Ltd reported three containers of formal suits and pants worth over $300,000 were stuck at Benapole. India's government likely made the decision to help open more opportunities for the country's expanding domestic textile sector, and curb the indirect entry of Chinese fabrics routed through Bangladesh. According to India's National Textile Committee, the policy could generate between 1,000 and 2,000 crore Indian rupees, or between $117 million and $234 million. Indian textile stocks surged early Monday on the news, with Siyaram Silk Mills jumping more than 8 percent and Kitex Garments and Raymond Limited increasing 5 percent. Under India's commerce ministry, the directorate implemented the trade policy shift in another escalation of tensions between the two countries since Bangladeshi Prime Minister Sheikh Hasina was ousted last summer. Hasina is currently residing in India under self-imposed exile, with the Bangladesh government seeking her extradition. India has yet to comply with the request. The restrictions will not apply to Bangladeshi exports to Nepal and Bhutan transiting to India. Additionally, imports of fish, liquefied petroleum gas, edible oil and crushed stone from Bangladesh can still pass freely through Indian land ports. The move to impose entry to RMGs and the other exports will hit 42 percent of India's total inbound trade from Bangladesh, affecting $770 million in product, according to a report from New Delhi-based Global Trade Research Initiative (GTRI) released Sunday. Readymade garments are valued at $618 million, the report calculated. India and Bangladesh have both imposed supply chain restrictions on each other in recent weeks amid the growing tensions. In April, India revoked Bangladesh's access to transshipment services, which allowed the latter to export goods via India's land borders and customs stations. Bangladeshi exporters used the service to ship goods out of India's airports and seaports, with Indian exporters urging the government to end the service to the congestion that had built up. Bangladesh had implemented some barriers of its own, halting foreign yarns from being imported into its own land ports in a move that pleased textile mills but frustrated apparel exporters in the country. Bangladesh orders roughly 45 percent of India's total cotton yarn exports. The country also restricted rice imports from India through the same land routes last month, and placed bans on paper, tobacco, fish and powdered milk imports. GTRI founder Ajay Srivastava said in the report that the cumulative actions, along with operational delays and tightened port inspections, have hampered Indian exporters and triggered calls for a 'calibrated response.' 'Top global brands like H&M, Zara, Primark, Uniqlo and Walmart source apparel from Bangladesh, some of which enters India's domestic market,' said Srivastava. 'Indian manufacturers have long expressed concern over the uneven playing field: they pay a 5 percent GST on locally sourced fabric, while Bangladeshi firms import fabric duty-free from China and receive export incentives for sales to India—giving them an estimated 10–15 percent price advantage.' India implemented a 20 percent import tariff on nine varieties of knitted fabric in February to control flooding of cheap textiles apparel into country—namely from China.
