Bangladesh Aims to Slash Cotton Imports by 15% Through Garment Waste Recycling
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- Published: Wednesday, 10 January 2024 03:39
In a groundbreaking move, Bangladesh is poised to revolutionize its textile industry by significantly reducing cotton imports through the efficient recycling of garment waste. Industry insiders reveal that this strategic initiative not only promises substantial cost savings but also opens the door to billions in additional annual revenue.
President of the Bangladesh Textile Mills Association (BTMA), Mohammad Ali Khokon, disclosed the staggering potential of transforming the vast amount of garment waste generated during pre- and post-production stages. Khokon emphasized that this transformation could lead to a remarkable 15% reduction in cotton imports, translating to savings of several hundred million dollars annually.
In 2022, Bangladesh imported over 18 lakh tonnes of cotton, worth Tk47,869 crore. If garment waste were efficiently recycled, the country could have saved Tk7,180 crore (almost $700 million) in that year alone.
The advantages extend beyond cost-cutting, with the potential for significant additional revenue. With the right policy support for local value addition, exports from garments made from recycled textile waste could generate an additional annual revenue of $4 billion to $5 billion, according to industry exporters.
Shahidullah Azim, Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), emphasized that recycling around 4 lakh tonnes of garment waste could potentially lead to an additional export value of $5 to $6 billion.
Despite the transformative potential, the garment recycling industry faces substantial challenges related to financing and taxation. A 22% VAT imposition is a major hurdle, as highlighted by BTMA President Mohammad Ali Khokon. He stressed the need for government support through policy and tax incentives.
BGMEA President Faruque Hassan urged prompt government action, emphasizing that the BGMEA and its member factories are actively involved in waste recycling efforts to reduce dependence on the 98% of imported cotton meeting current demand.
The move towards recycled yarn, a process that doesn't require water or chemicals, aligns with environmentally friendly practices. The industry's shift toward recycling not only promises economic benefits but also underscores a commitment to sustainability.
As Bangladesh charts a new course in utilizing its garment waste, the potential for substantial cost savings, additional revenue, and environmental sustainability positions the country as a trailblazer in textile industry transformation. With the right policy support and collaboration, Bangladesh is on track to unlock billions and pave the way for a more sustainable and prosperous future. Stay tuned for further updates on this groundbreaking development.