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Dhaka Tribune

Govt exploring export market for RMG accessories

Some 1,900 accessories and packaging makers meet almost the entire demand of the export-oriented RMG sector

Update : 30 Jul 2023, 03:56 PM

With the surplus production capacities of readymade garment (RMG) accessories and packaging products, Bangladesh is now looking to export them. 

The government has asked the country's 18 missions abroad to explore how to increase earnings from the subsector that mainly supplies to local RMG factories as deemed exporters, and has recently started exporting directly to the RMG factories in other countries.

Efforts in this regard are being made to mitigate possible shocks after the country's LDC graduation, sources at the Ministry of Commerce said.

The ministry recently instructed the commercial councilors, ministers (commercial), economic minister (Geneva) and first secretaries (commercial) to send home detailed reports on demands for the backward linkage products in various countries and export opportunities.

Textile fabrics and accessories are two major inputs of the RMG industry. 

Some 1,900 accessories and packaging makers meet almost the entire demand of the export-oriented RMG sector, industry insiders said.

As many as 15 accessories and packaging products are now being exported to 21 countries and regions, including the Netherlands, South Africa, Pakistan, India, Middle-East, Ethiopia, Indonesia, Italy, Sri Lanka, Turkmenistan, Germany, and Austria.

In FY22, the subsector earned about $7.67 billion (deemed and direct export), including direct export worth around $1 billion.

It has set an export target of $12 billion by the end of 2025. 

More than 700,000 employees are working in the sector, including 20% women, according to the association.

The Tk35,000 crore packaging and accessories sector's value addition is around 40%, according to Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA).

Sector insiders said the government should take steps to provide cash incentives for the accessories and packaging sector to help boost export earnings.

They also stressed the need for bonded warehouse facilities to facilitate exports.

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