As per Bangladesh Textile Mills Association (BTMA) data, the market share of domestic woven fabrics in RMG export is stagnating for the last three years despite rising demand. Though the mills have expanded their production capacity in line with export growth, their market share is stagnating at 35 per cent.

BTMA points out that with 35 per cent local market share, Bangladesh is meeting more than 70 per cent denim demand. However, local mills are yet to start manufacturing high-tech and other woven fabrics. So these fabrics are imported. Lack of investment options is also one of the factors leading to players not setting up high-tech woven mills.

With increasing competition from countries like India, Cambodia, Vietnam, Pakistan coupled with issues like rising wages and transport costs, costlier utility services, high bank rates and other problems are also impacting competitiveness of the export segment.

As per data available from different sources, local millers could meet 35 per cent demand four years back when export for readymade garment was less than $16 billion. The sources says in the last fiscal, RMG exports was more than $20 billion and the current fiscal target is $23 billion but local woven contribution is not increasing. As per experts, foreign direct investments in textile industry could be a solution as the foreign companies can bring their money to manufacture high-tech woven textile products.

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