Staff Correspondent : Bangladesh’s non-cotton apparel exports could increase to $42 billion by 2032 from the existing $15.6 billion with the support of a fully integrated value chain with investments worth $18 billion, according to a recent study.

The study titled ‘Beyond Cotton: A Strategic Blueprint for Fibre Diversification’ said that the share of non-cotton apparel exports from Bangladesh was lesser than cotton apparel exports, but it was increasing rapidly in the global trade.

Over the past five years, there has been a notable surge in global non-cotton fibre production, capturing an impressive 78 per cent share of the total fibre production, it mentioned saying that in contrast, cotton fibre production had faced a decline in the same period.

Under the support of the Bangladesh Garment Manufacturers and Exporters Association, Indian research firm Wazir Advisors Pvt Ltd conducted the research.

The BGMEA on Sunday launched the report at a press conference held at the headquarters of the trade body at Uttara in the capital Dhaka.

The study found that Bangladesh’s cotton apparel exports exhibited a high concentration, primarily focusing on four categories, including t-shirts, jerseys and woven trousers that collectively commanded a significant 63 per cent share.

As Bangladesh approaches graduation from the least developed country status in 2026 and the government and industry leaders are negotiating to extend the duty-free market access in the global market up to 2032, the country should aim to achieve a sustained double-digit growth rate in non-cotton apparel exports, aspiring to increase the earnings to $42 billion, it said.

To realise this vision, the report recommended developing a dedicated policy for the non-cotton industry, encompassing a clearly defined vision, mission and actionable points that specifically address the key challenges of insufficient technical know-how and limited upstream capacities.

It also estimated that an investment of approximately $18 billion in the area of yarn, fabric and garment manufacturing would be required to forge a fully integrated value chain that aligns with the aspirations set for the Vision 2032.

The report also showed that the investment would create additional employment of over 1.8 million.

The report also identified lack of technical know-how and limited upstream capacities as the key challenges for establishing a non-cotton value chain in Bangladesh.

Varun Vaid, business director of Wazir Advisors Pvt Ltd, presented the key findings of the study at the press conference.

He said that globally the use of non-cotton fibre was 75 per cent, but in Bangladesh the picture was just reverse as the local apparel makers used 71 per cent cotton fibre for making garment.

BGMEA president Faruque Hassan said that they wanted to take the global market share of locally made apparel to 12 per cent from the existing 7.87 per cent by using the non-cotton fibre as the prices of the products made with man-made fibre was higher than the cotton made items.

The choice of consumers has also changed and they prefer durable and sustainable products, he said.

Once the country graduates to a developing one, the government could not provide cash incentive for the sector, but the government incentive would be needed in different forms in establishing a non-cotton value chain in the country, the BGMEA president said.

Regarding the recent price hike of power, Faruque said that it would increase the cost of production, fuel inflation and hamper the growth of apparel sector.

He urged the government to withdraw the decision on increasing the price hike of electricity.

BGMEA director Asif Ashraf and former director Shovon Islam, among others, spoke at the press conference.