• CCI AD FROM 5th April 2021

Bangladesh

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)

50

Silk

7,397

51

Wool, animal hair, horsehair yarn and fabric thereof

71,816

52

Cotton

4,974,075

53

Vegetable textile fibres , paper yarn, woven fabric

98,430

54

Manmade filaments

639,635

55

Manmade staple fibres

1,204,488

56

Wadding, felt, non-wovens, yarns, twine, cordage, etc

63,987

57

Carpets and other textile floor coverings

9,604

58

Special woven or tufted fabric, lace, tapestry etc

252,653

59

Impregnated, coated or laminated textile fabric

217,973

60

Knitted or crocheted fabric

534,709

61

Articles of apparel, accessories, knit or crochet

183,851

62

Articles of apparel, accessories, not knit or crochet

112,577

63

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)

540110

Sewing thread of synthetic filaments

13,533

540231

Texturd yarn ,of nylon/oth polyamides fi,</=50tex/s.y.,not put up

6,667

540233

Textured yarn ,of polyester filaments,not put up for retail sale

121,535

540244

Synthetic filament elastomeric yarn, single, untwisted or with a twist

26,660

540245

Filament yarn of nylon or other polyamides, incl. monofilament of < 67

9,957

540247

Filament yarn of polyester, incl. monofilament of < 67 decitex, single

17,826

540249

Yarn of synthetic filaments, single, untwisted, , not put up

7,630

540261

Yarn of nylon or other polyamides fi, multiple, , not put up

6,308

540262

Yarn of polyester filaments, multiple, , not put up

9,259

540331

Yarn of viscose rayon filaments, single, untwisted, , not put up

5,398

550810

Sewing thread of synthetic staple fibres

46,776

550911

Yarn,>/=85% nylon or other polyamides staple fibres,single,not put up

5,768

550912

Yarn,>/=85% nylon o oth polyamides staple fibres,multi,not put up

7,593

550921

Yarn,>/=85% of polyester staple fibres, single, not put up

12,972

550922

Yarn,>/=85% of polyester staple fibres, multiple, not put up,

60,793

550931

Yarn,>/=85% of acrylic or modacrylic staple fibres, single, not put up

45,397

550932

Yarn,>/=85% acrylic/modacrylic staple fibres,multiple,not put up

103,154

550951

Yarn of polyester staple fibres mixd w/ arti staple fib,not put up

6,684

550953

Yarn of polyester staple fibres mixed with cotton, not put up,

16,448

550959

Yarn of polyester staple fibres, not put up,

5,521

550961

Yarn of acrylic staple fib mixd w wool/fine animal hair,not put up

14,284

550962

Yarn of acrylic staple fibres mixed with cotton, not put up,

43,211

550969

Yarn of acrylic staple fibres, not put up,

26,832

550999

Yarn of other synthetic staple fibres, not put up,

8,574

551011

Yarn,>/=85% of artificial staple fibres, single, not put up

17,933

551012

Yarn,>/=85% of artificial staple fibres, multiple, not put up,

36,178

551030

Yarn of artificial staple fibres mixed with cotton, not put up,

17,065

551090

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)

540710

Woven fab of high tenacity fi yarns of nylon oth polyamides/polyesters

4,461

540742

Woven fabrics,>/=85% of nylon/other polyamides filaments, dyed,

48,571

540752

Woven fabrics,>/=85% of textured polyester filaments, dyed,

170,337

540754

Woven fabrics,>/=85% of textured polyester filaments, printed,

19,664

540761

Woven fabric >85% non-textured polyester filaments

73,830

540769

Woven fabric >85% polyester filaments,

18,936

540772

Woven fabrics,>/=85% of synthetic filaments, dyed,

11,303

540782

Woven fabrics of synthetic filaments,<85% mixed with cotton,dyed

6,434

540783

Woven fabrics of synthetic filaments,<85% mixd w cotton,yarn dyd

5,183

540792

Woven fabrics of synthetic filaments, dyed,

6,122

551219

Woven fabrics,containg>/=85% of polyester staple fibres,o/t unbl or bl

15,192

551229

Woven fabrics,containing>/=85% of acrylic staple fibres,o/t unbl or bl

10,390

551311

Plain weave polyest stapl fib fab,<85%,mixd w/cottn,</=170g/m2,unbl/bl

60,600

551313

Woven fab of polyest staple fib,<85% mixd w/cot,</=170g/m2,unbl/bl

7,720

551321

Plain weave polyester staple fib fab,<85%,mixd w/cotton,</=170g/m2,dyd

51,910

551323

Woven fab of polyester staple fib,<85%,mixd w/cot,</=170 g/m2,dyd

8,649

551329

Woven fabrics of oth syn staple fib,<85% mixd w/cotton,</=170g/m2,dyed

8,558

551331

Plain weave polyest stapl fib fab,<85% mixd w/cot,</=170g/m2,yarn dyd

45,010

551339

Woven fab of oth syn staple fib,<85% mixd w/cot,</=170g/m2,yarn dyd

10,210

551341

Plain weave polyester stapl fib fab,<85%,mixd w/cot,</=170g/m2,printd

7,660

551422

Twill weave polyester staple fibre fab,<85%,mixd w/cotton,>170g/m2,dyd

28,832

551423

Woven fabrics of polyester staple fib,<85%,mixed w/cot,>170 g/m2,dyed

13,459

551511

Woven fab of polyester staple fib mixd w viscose rayon staple fib

62,062

551513

Woven fab of polyester staple fibres mixd w/wool/fine animal hair

6,198

551612

Woven fabrics, containing>/=85% of artificial staple fibres, dyed

15,255

551614

Woven fabrics, containing>/=85% of artificial staple fibres, printed

10,725

551622

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)

600122

Looped pile knitted or crocheted fabrics, of man-made fibres

8,107

600192

Pile knitted or crocheted fabrics, of man-made fibres,

59,631

600531

Unbleached or bleached warp knit fabrics of synthetic fibres "incl. th

2,573

600532

Dyed warp knit fabrics of synthetic fibres "incl. those made on galloo

33,098

600631

Unbleached or bleached fabrics, knitted or crocheted, of synthetic fib

3,385

600632

Dyed fabrics, knitted or crocheted, of synthetic fibres, of a width of

97,497

600634

Printed fabrics, knitted or crocheted, of synthetic fibres, of a width

14,514

600642

Dyed fabrics, knitted or crocheted, of artificial fibres, of a width o

10,626

600644

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
including: bed, bath, kitchen linens, etc.

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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