BANGLADESH: EMERGING MARKET FOR INDIAN MMF TEXTILES EXPORTS
Bangladesh imported around US$ 3 billion of Man-made fibre textiles from the world during 2013 of which India’s share was around 8% (US$ 0.23 billion). The main countries which exported man-made fibre textile to Bangladesh during the year were China, India, Thailand, South Korea, Indoia, Japan, Vietnam, etc. Since, India’s share in Bangladesh’s total import of manmade fibre textiles was only 8%, there is huge untapped scope for increasing exports of Indian manmade fibre textiles to this country.
IMPORT OF TOTAL TEXTILE & CLOTHING VS. MAN-MADE FIBRE TEXTILES
Bangladesh has emerged as one of the largest apparel exporting countries in the world. Bangladesh is manufacturing for international brands like Tommy Hilfiger, Gap, Calvin Klein, H&M, etc. and global retailers like Target and Walmart are now having sourcing offices in Dhaka. Exports of apparel from Bangladesh have recorded a growth of 12% during 2013 as compared to the previous year. Major apparels exported by Bangladesh include knitted and woven articles like Jerseys, pullovers, T-shirts, singlets, Babies' garments, suits, jackets, trousers, shirts, skirts, shorts, jackets, sweaters, among other fashion apparel.
However, the strong and growing ready-made garment industry of Bangladesh is not being able to support adequately by its local production of textiles and there is a huge demand – supply gap which has been covered up through imports. Bangladesh is importing its required textiles including manmade fibre textiles from countries like China, India, Thailand, South Korea, Indoia, etc.
Imports of Textiles and Clothing by Bangladesh
Chap |
Product Description |
Imports in 2013 (In US$ 1000) |
Silk |
7,397 |
|
Wool, animal hair, horsehair yarn and fabric thereof |
71,816 |
|
Cotton |
4,974,075 |
|
Vegetable textile fibres , paper yarn, woven fabric |
98,430 |
|
Manmade filaments |
639,635 |
|
Manmade staple fibres |
1,204,488 |
|
Wadding, felt, non-wovens, yarns, twine, cordage, etc |
63,987 |
|
Carpets and other textile floor coverings |
9,604 |
|
Special woven or tufted fabric, lace, tapestry etc |
252,653 |
|
Impregnated, coated or laminated textile fabric |
217,973 |
|
Knitted or crocheted fabric |
534,709 |
|
Articles of apparel, accessories, knit or crochet |
183,851 |
|
Articles of apparel, accessories, not knit or crochet |
112,577 |
|
Other made textile articles, sets, worn clothing etc |
56,311 |
|
TOTAL |
|
8,427,506 |
Source: COMTRADE Statistics
During 2013 Bangladesh imported around US$ 800 Mn. of Man-made fibre yarn from the world of which India’s share was around 9% (US$ 70 Mn.). Thus, there is substantial scope for India to increase its market share in Bangladesh’s import of MMF yarns from the world.
Major MMF Yarns imported by Bangladesh
Chap |
Product Description |
Imports in 2013 (In US$ 1000) |
Sewing thread of synthetic filaments |
13,533 |
|
Texturd yarn ,of nylon/oth polyamides fi,</=50tex/s.y.,not put up |
6,667 |
|
Textured yarn ,of polyester filaments,not put up for retail sale |
121,535 |
|
Synthetic filament elastomeric yarn, single, untwisted or with a twist |
26,660 |
|
Filament yarn of nylon or other polyamides, incl. monofilament of < 67 |
9,957 |
|
Filament yarn of polyester, incl. monofilament of < 67 decitex, single |
17,826 |
|
Yarn of synthetic filaments, single, untwisted, , not put up |
7,630 |
|
Yarn of nylon or other polyamides fi, multiple, , not put up |
6,308 |
|
Yarn of polyester filaments, multiple, , not put up |
9,259 |
|
Yarn of viscose rayon filaments, single, untwisted, , not put up |
5,398 |
|
Sewing thread of synthetic staple fibres |
46,776 |
|
Yarn,>/=85% nylon or other polyamides staple fibres,single,not put up |
5,768 |
|
Yarn,>/=85% nylon o oth polyamides staple fibres,multi,not put up |
7,593 |
|
Yarn,>/=85% of polyester staple fibres, single, not put up |
12,972 |
|
Yarn,>/=85% of polyester staple fibres, multiple, not put up, |
60,793 |
|
Yarn,>/=85% of acrylic or modacrylic staple fibres, single, not put up |
45,397 |
|
Yarn,>/=85% acrylic/modacrylic staple fibres,multiple,not put up |
103,154 |
|
Yarn of polyester staple fibres mixd w/ arti staple fib,not put up |
6,684 |
|
Yarn of polyester staple fibres mixed with cotton, not put up, |
16,448 |
|
Yarn of polyester staple fibres, not put up, |
5,521 |
|
Yarn of acrylic staple fib mixd w wool/fine animal hair,not put up |
14,284 |
|
Yarn of acrylic staple fibres mixed with cotton, not put up, |
43,211 |
|
Yarn of acrylic staple fibres, not put up, |
26,832 |
|
Yarn of other synthetic staple fibres, not put up, |
8,574 |
|
Yarn,>/=85% of artificial staple fibres, single, not put up |
17,933 |
|
Yarn,>/=85% of artificial staple fibres, multiple, not put up, |
36,178 |
|
Yarn of artificial staple fibres mixed with cotton, not put up, |
17,065 |
|
Yarn of artificial staple fibres, not put up, |
11,243 |
Source: COMTRADE Statistics
Major MMF Fabrics imported by Bangladesh
During 2013 Bangladesh imported around US$ 1 Bn. of Man-made fibre yarn from the world of which India’s share was 12% (US$ 118 Mn). Hence, there is scope for India to increase exports of MMF fabrics to Bangladesh.
Chap |
Product Description |
Imports in 2013 (In US$ 1000) |
Woven fab of high tenacity fi yarns of nylon oth polyamides/polyesters |
4,461 |
|
Woven fabrics,>/=85% of nylon/other polyamides filaments, dyed, |
48,571 |
|
Woven fabrics,>/=85% of textured polyester filaments, dyed, |
170,337 |
|
Woven fabrics,>/=85% of textured polyester filaments, printed, |
19,664 |
|
Woven fabric >85% non-textured polyester filaments |
73,830 |
|
Woven fabric >85% polyester filaments, |
18,936 |
|
Woven fabrics,>/=85% of synthetic filaments, dyed, |
11,303 |
|
Woven fabrics of synthetic filaments,<85% mixed with cotton,dyed |
6,434 |
|
Woven fabrics of synthetic filaments,<85% mixd w cotton,yarn dyd |
5,183 |
|
Woven fabrics of synthetic filaments, dyed, |
6,122 |
|
Woven fabrics,containg>/=85% of polyester staple fibres,o/t unbl or bl |
15,192 |
|
Woven fabrics,containing>/=85% of acrylic staple fibres,o/t unbl or bl |
10,390 |
|
Plain weave polyest stapl fib fab,<85%,mixd w/cottn,</=170g/m2,unbl/bl |
60,600 |
|
Woven fab of polyest staple fib,<85% mixd w/cot,</=170g/m2,unbl/bl |
7,720 |
|
Plain weave polyester staple fib fab,<85%,mixd w/cotton,</=170g/m2,dyd |
51,910 |
|
Woven fab of polyester staple fib,<85%,mixd w/cot,</=170 g/m2,dyd |
8,649 |
|
Woven fabrics of oth syn staple fib,<85% mixd w/cotton,</=170g/m2,dyed |
8,558 |
|
Plain weave polyest stapl fib fab,<85% mixd w/cot,</=170g/m2,yarn dyd |
45,010 |
|
Woven fab of oth syn staple fib,<85% mixd w/cot,</=170g/m2,yarn dyd |
10,210 |
|
Plain weave polyester stapl fib fab,<85%,mixd w/cot,</=170g/m2,printd |
7,660 |
|
Twill weave polyester staple fibre fab,<85%,mixd w/cotton,>170g/m2,dyd |
28,832 |
|
Woven fabrics of polyester staple fib,<85%,mixed w/cot,>170 g/m2,dyed |
13,459 |
|
Woven fab of polyester staple fib mixd w viscose rayon staple fib |
62,062 |
|
Woven fab of polyester staple fibres mixd w/wool/fine animal hair |
6,198 |
|
Woven fabrics, containing>/=85% of artificial staple fibres, dyed |
15,255 |
|
Woven fabrics, containing>/=85% of artificial staple fibres, printed |
10,725 |
|
Woven fabrics of artificial staple fib,<85%,mixd with man-made fi,dyd |
61,216 |
Source: COMTRADE Statistics
Major MMF Knitted Fabrics imported by Bangladesh
Chap |
Product Description |
Imports in 2013 (In US$ 1000) |
Looped pile knitted or crocheted fabrics, of man-made fibres |
8,107 |
|
Pile knitted or crocheted fabrics, of man-made fibres, |
59,631 |
|
Unbleached or bleached warp knit fabrics of synthetic fibres "incl. th |
2,573 |
|
Dyed warp knit fabrics of synthetic fibres "incl. those made on galloo |
33,098 |
|
Unbleached or bleached fabrics, knitted or crocheted, of synthetic fib |
3,385 |
|
Dyed fabrics, knitted or crocheted, of synthetic fibres, of a width of |
97,497 |
|
Printed fabrics, knitted or crocheted, of synthetic fibres, of a width |
14,514 |
|
Dyed fabrics, knitted or crocheted, of artificial fibres, of a width o |
10,626 |
|
Printed fabrics, knitted or crocheted, of artificial fibres, of a widt |
2,026 |
Source: COMTRADE Statistics
Exports of Indian man-made fibre textiles to Bangladesh
Bangladesh is a growing market for man-made fibre textiles. During 2013-14 Bangladesh has emerged as the 5th largest market for Indian man-made fibre textiles. Exports of these textiles from India to Bangladesh have steadily grown over the years to reach to the tune of USD 230 Mn. during 2013-14 recording a growth of 32% compared to the previous year.
|
Fabrics |
Made-up |
Yarn |
Fibre |
Total |
%Gr/Dec |
2009-10 |
76.4 |
2.56 |
30.72 |
14.51 |
124.19 |
|
2010-11 |
57.94 |
2.6 |
49.5 |
24.02 |
134.06 |
7.95 |
2011-12 |
61.18 |
2.5 |
48.77 |
16.47 |
128.92 |
-3.83 |
2012-13 |
88.48 |
4.59 |
53.2 |
27.64 |
173.91 |
34.90 |
2013-14 |
117.49 |
6.73 |
69.58 |
35.58 |
229.38 |
31.90 |
Source: DGCI&S
Main items of exports in India's export basket of manmade fibre textiles to Bangladesh during 2013-143 were as follows: |
|
Fabrics |
Polyester Filament Fabrics, Nylon Filament Fabrics, Sarees, etc. |
Made-ups |
Furnishing Articles, Laces, Braids, Muffler, etc. |
Yarn |
Acrylic Spun Yarn, Polyester Textured Yarn, Polyester Cotton Yarn, etc. |
Fibre |
Viscose Staple Fibre, Polyester Staple Fibre, etc. |
Import Duty Structure of Bangladesh
Bangladesh's import tariffs are applied on the c.i.f. (cost, insurance, freight and other charges) value.
Products |
HS Chapter/Subheading |
Tariff Rate Range (%) |
Fibre/Yarn |
||
silk |
5003-5006 |
12 |
wool |
5105-5110 |
5 |
cotton |
5203-5207 |
5 - 12 |
other vegetable fiber |
5306-5308 |
12 - 25 |
man-made fiber |
5401-5406/5501-5511 |
5 - 25 |
Woven Fabric |
||
silk |
5007 |
25 |
wool |
5111-5113 |
25 |
cotton |
5208-5212 |
25 |
other vegetable fiber |
5309-5311 |
25 |
man-made fiber |
5407-5408/5512-5516 |
25 |
Knit Fabric |
60 |
25 |
Non Woven Fabric |
5603 |
25 |
Industrial Fabric |
59 |
3 - 25 |
Apparel |
61-62 |
12 - 25 |
Made ups: Home Furnishings |
63 |
25 |
INCREASING EXPORT POSSIBILITIES FROM INDIA South Asian Free Trade Area (SAFTA)
Bangladesh is committed to allow duty-free import of 248 products from Non-LDCs (NLDCs) under SAFTA including India as part of a major move by the South Asian nations to boost intra-regional trade. By doing so, Bangladesh has reduced the number of items in its Sensitive List from 1241 to 993 in case of Non-LDCs which also includes textile items including synthetic & rayon textiles. Approval of duty - free import of manmade fibre textiles from India is expected to substantially boost to already growing exports of Indian manmade fibre textiles to Bangladesh.
Sensitive lists under the SAFTA comprise around 53% of the total trade among the SAFTA member-states. The present numbers of the products kept by the SAFTA countries in its respective Sensitive lists are given as follows:
Member State |
Number of Products in the Sensitive Lists at present |
Number of Products agreed to be reduced during the Second Meeting (20% reduction) |
Proposed Number of Products in the Sensitive Lists w.e.f. 1January, 2012 (2) – (3) |
(1) |
(2) |
(3) |
(4) |
Afghanistan |
1072 |
214 |
858 |
Bangladesh |
1233 (LDCs) 1241 (NLDCs) |
246 (LDCs) 248 (NLDCs) |
987 (LDCs) 993 (NLDCs) |
Bhutan |
150 |
0 |
150 |
India |
480 (LDCs) 868 (NLDCs) |
96 (LDCs) 173 (NLDCs) |
384 (LDCs) 695 (NLDCs) |
Maldives |
681 |
136 |
545 |
Nepal |
1257 (LDCs) 1295 (NLDCs) |
251(LDCs) 259 (NLDCs) |
1006 (LDCs) 1036 (NLDCs) |
Pakistan |
1169 |
233 |
936 |
Sri Lanka |
1042 |
208 |
835 (LDCs) 906 (NLDCs) |
Bangladesh being India’s neighbouring market, India has various comparative advantages due to geographical proximity including logistical advantage to export Man-made fibre textiles to Bangladesh. Enhanced trade ties in textiles between India and Bangladesh is a win win situation for both the countries. Moreover, with imports of Indian MMF textiles Bangladesh can cut costs and Indian MMF textiles are complementing Bangladesh garmenting industry rather than competing.
Indian Government’s Positive Steps
The Government of India has recently taken pro-active initiatives to facilitate bilateral trade between India and Bangladesh like extending working hours at Petrapole, aligning the weekly holiday with Bangladesh, allowing movement of trucks carrying export cargo up to the LCS of the importing country for discharge of cargo, regular meetings between the jurisdictional commissioners of Customs of India and Bangladesh as well as meetings at the border to address issues of concern to the trade, etc. The same will enormously help in increasing exports of Indian MMF textiles to Bangladesh.
The Council has also requested for a system to be introduced by which trucks from India may be given permission to reach goods directly to factories in Bangladesh which may substantially reduce the role of middle men and leakages.
SRTEPC Promotional Programme
In view of the importance and growing scope for increasing exports of Indian manmade fibre textiles to Bangladesh, the Synthetic and Rayon Textiles Export Promotion Council is planning to organize an exclusive Indian Textiles Exhibition in Bangladesh during 2014. This will be a big opportunity for the Indian companies to explore the Bangladeshi market in right time. Thus, the Council requests its member –companies to participate in a big way to showcase India’s strength in manmade fibre textiles before Bangladeshi buyers/importers, retail houses, agents, etc. and take advantage of the event.
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