Bangladesh needs a lot of diverse raw materials as local apparel makers are diversifying their product list including denim and artificial fabrics. The country’s local spinners are capable to supply 85 percent of the raw materials required by the knitwear sector and 40 percent of the woven sector. It looks like local spinners are trying to expand their footprint in the market. Garments manufacturers prefer locally made yarn to reduce long-lead-time as they find it difficult to supply garment items on time when they are manufactured from imported yarn and fabrics. Now, most of the local spinners have export-oriented garment factories. So, they consume the yarn and fabrics according to order.
Majority of the existing mills are expanding their capacity almost every month because of higher demand from local garment manufacturers and exporters. According to data from the Bangladesh Textile Mills Association (BTMA), Entrepreneurs invested Tk 5,970 crore in 26 new manufacturing plants, adding more than 745,400 new spindles to their combined capacity.
In 2020, Bangladesh imported $1.32 billion worth of knitted fabrics, $2.76 billion worth of woven fabrics, and $0.10 billion worth of yarn for the local garment industry. Maximum apparel factory owners have a lot of orders from the international clothing sector and brands. Following the demand, now spinners are investing in the spinning sector to supply adequate yarn. Good quality products, Quick lead-time, and private consumption are highly pushing the local demand for yarn and fabrics. If local garment exporters import yarn and fabrics from other countries such as China and India, it will take almost 20 days to get the raw materials. In contrast, they can buy the necessary items from the local market when they need.
Bangladesh has taken a hit following the gas crisis owing to recasting at the Bibiyana gas field in March 2022. Ashulia, Shreepur, Dhaka, Gazipur, Savar, Narayanganj, Narsingdi, and Bhaluka are known as Industrial hubs as maximum production plants and spinning mills are located there. These Industries require a substantial amount of gas, and following the latest gas crisis, garment manufacturers are agitated in their production capacity. BTMA members have been complaining of losses following production getting hit on account of an acute shortage of gas.