BGMEA eyes potential $5 billion recycled apparel export
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has touted great prospects in the export of value-added garments made of recycled yarn from scrap fabric or used cloth.
Around five billion dollars in revenue can be generated by exporting apparel products made from recycled yarn, the organisation estimated during the pre-budget discussion held at the NBR Building in Dhaka's Agargaon on Tuesday (7 March).
BGMEA President Faruque Hassan at the meeting highlighted the export potential of recycled RMG products noting that around $500 million worth of jhut or scrap fabrics are currently produced in the country.
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Anticipating that Bangladesh could turn into a hub for recycled garments, Faruque Hassan said three factories have already started producing recycled yarn while encouraging others to invest.
He sought policy support from the government in this regard as the value-added scrap fabric ha the potential to earn billions while reducing environmental pollution and unsolicited conflicts over the issue.
Agreeing with the export potential, NBR Chairman Abu Hena Md Rahmatul Muneem, who presided over the meeting, said policy support can be provided to this effect.
"However, it will be detrimental for the country if the enterprise ends up encouraging the creation of a harmful chemical hub here," warned the NBR chairman.
"The scrap fabrics are either causing harm to the environment by ending up in landfills or factory owners are being forced to hand them over to local influential groups for free or at a cheap price," BGMEA President Faruque explained while talking to The Business Standard (TBS) after the meeting today.
He said, "If the local textile mills can be exempted from value-added tax (VAT) that they are required to pay when selling scraps formally, it will encourage them to invest in recycling the fabrics."
Besides, Faruque Hassan suggested collecting scrap fabrics from other countries and exporting them after value addition. He said he believes this would welcome opportunities for Bangladesh to become a hub for sustainable garment products.
