Xinjiang cotton fermentation upgrade
According to foreign reports, Bangladesh’s clothing exports to the United States may be hit due to the United States’ restrictions on related goods from China’s Xinjiang region. Prior to this, the Bangladesh Garment Buyers Association (BGBA) issued a directive asking its members to be cautious about sourcing raw materials from the Xinjiang region.
According to a statement from the BGBA, the Indo-Pacific Opportunities Project regional assessment mission funded by the US Agency for International Development notified the BGBA that any clothing produced in Bangladesh cannot enter the United States if it is produced with fabric imported from Xinjiang cotton. If products are found to be in any way related to Xinjiang cotton, these products will be confiscated. If confiscated, exporters will not receive their payments.
It is reported that the delegation also held a meeting with the Bangladesh Textile Mills Association (BTMA). The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said manufacturers are closely monitoring the issue and many of them have found alternatives to imported yarns and fabrics. Domestic knitting manufacturers can source yarn and fabric from the local market, while woven manufacturers that meet most of their fabric needs through imports may face some challenges. However, Bangladeshi cotton mills mainly import raw cotton from African countries, India and the United States, so they will not face any challenges.
In 2021, Bangladesh’s yarn imports amounted to US$2.1 billion, a year-on-year increase of 150%, of which 84% came from India, 8% came from China, Indonesia and Turkey accounted for 4% and 3% respectively. The import value of gray fabrics was US$1.8 billion, a year-on-year decrease of 30.7%, due to a significant increase in yarn imports.
energy supply crisis
And Pakistan’s textile industry is also in dire straits now! Affected by energy outages and severe shortages of natural gas and electricity supplies, the local textile industry may face an export loss of at least US$1 billion in early July.
The Pakistan Textile Mills Association stated that the textile industry will not only reduce its output by more than 50% due to the half-month shutdown, but will also be forced to borrow US$6 billion from overseas due to energy supply and cost constraints. At the same time, it will face the loss of orders, customers, and defaults. Loss and other risks. Currently, the most severely damaged area is Pakistan’s Punga Province, where textile factories account for 70% of the country’s total. 400 textile factories are facing closure, and thousands of people have lost their jobs. The export target of US$26 billion for the fiscal year has been adversely affected, and the association has submitted the consequences of this matter to the Prime Minister to recommend that energy supplies be restored as soon as possible.
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