By Reuters article Aug 28, 2019 15:35:45 A textile textile manufacturing plant in the Bangladeshi capital, Dhaka, that processes the fabric for a clothing line that was once owned by the state is struggling with poor quality, with its production costing over US$10,000 per day, the country’s chief executive said.
Textile manufacturing has been a staple of Bangladesh since the country gained independence from British colonial rule in 1971.
In 2018, the textile sector was estimated to contribute almost 50 percent of the countrys GDP and more than half its exports, according to a study commissioned by the government.
The countrys textile production sector is one of the fastest growing sectors in the world, but with growing competition, demand has been rising.
The government has also been seeking ways to raise productivity, as factories are now facing growing pressure from overseas.
Last year, the government said it was considering making the textile industry compulsory.
But a senior official said on Monday that the textile manufacturing industry had suffered in recent years from poor quality and a lack of capital, adding that the government would make up for the lost revenue.
“We have been unable to do it in the past, as we have had to buy raw materials and machinery from abroad,” Abdul Qadir told Reuters.
“Now that we have become a major global market, we are trying to raise quality, we will start increasing production from overseas.”
He said the factory, which was once the government’s flagship textile factory, had lost about $10,500 in revenue in the last six months.
“So now the profit is less than half what we used to make in our factories,” he said.
“It is still a small profit but we need to improve.”