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Bangladesh cuts reliance on raw material imports


The retention value of the exported apparel from Bangladesh surged 36 per cent in the financial year 2021-2022 from a year earlier.

Thanks to the increasing use of local raw materials, Bangladesh’s retention value from the shipment of apparel items is rising, highlighting the development of a strong backward linkage industry and less reliance on imported yarn and fabrics.A high retention value means local garment suppliers use more local yarn and fabrics to make apparel items for international consumers, cutting their dependence on imported raw materials such as yarn, fabrics and dying chemicals.

From the very beginning of the garment industry in Bangladesh, the knitwear sector has created more retention value than the woven sector thanks to the higher use of locally made yarn by the former.Currently local spinners can supply nearly 90 per cent of raw materials needed by export-oriented knitwear factories as entrepreneurs have invested heavily in the primary textile sector.

The investment in the woven sector has not matched that of the knitwear sector. So, woven garment makers rely on countries such as China, India and Pakistan to source raw materials like woven fabrics.Local weavers can supply 45 per cent of raw materials to woven garment exporters.


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