Saturday 30 December 2006

Textile Industry Scenario of Bangladesh-3

Technology

It is believed that one of the major drawbacks in the Bangladesh Textile industry has been a low level of technical development, which is reflected in the low productivity in the industry.

The Waist Loom

The Waist Loom is used by the Hill Tribes only, producing characteristic tribal textiles.

The Throw-shuttle Loom
This very simple pit loom is used for Jamdani and Bonsai saris, being operated by two persons: One throwing the shuttle, and the other receiving the shuttle and throwing it back. This type of loom can also be operated by one weaver, depending on the width of the weave.

The Fly-shuttle Loom
Most of the fly-shuttle looms in Bangladesh are pit looms, even if frame looms are also available (but more expensive). The fly-shuttle pit loom is the most extensively used handloom in Bangladesh for producing a range of fabrics from superfine to common utility varieties. One person can operate it. The main products are sari, lungi, dhoti (scarf), tablecloth etc. The superfine Tangail sari is woven on this loom.



The Chittaranjan Loom/ The Semi-automatic Loom
The Chittaranjan loom is made completely of seasoned timber, and the construction is almost like a fly-shuttle frame loom with the added feature of long length cloth winding devices and an iron wheel attachment. The former mechanism facilitates the use of long warp, usually 500-600 meters, and the latter expedites the battening as well as the shuttle throwing operations. The jacquard attachment in this loom is more comfortable than in the pit frame-shuttle loom, as it is controlled by the wheel.



Huttersley Pedal Loom
This loom is made completely of steel and iron castings. The improvement of this loom over the Chittaranjan loom is that shuttle throwing, battening and shaft propulsion are done on this loom under the power of a wheel operated by pedaling, which synchronizes all the movements.

The limitation of the Huttersley Pedal Loom is that the exertion demanded of the operator is very great. This loom can be easily converted into power-loom by using an electric motor. Due to the expansion of electrification in the 1980es in the areas where this loom was being operated, almost all such looms have been converted into power-looms and no longer can be regarded as handlooms.

Capacity
Normally a pit loom weaver can make 4 yards a day. It is possible to make a sari a day that is 6 yards, on a fly-shuttle loom. On a Chittaranjan the daily output can be up to 18 yards, equaling three saris a day.

Organizational Structure

According to Latif, the weavers can be classified into four categories:

Independent weavers
This group of weavers is characterized by the ownership of both fixed (looms) and working capital (cash). However, most of the weavers have to borrow to finance their trade and are thus dependent on the fanciers, mostly yarn traders. This group is sometimes called “self-employed weavers”.



Dadan Weavers
The dadan weavers are also characterized by the ownership of looms and accessories, and have their own establishments, but they do not have working capital. They produce goods for their mohajan known as the dadan master, with the raw materials supplied by him. Dyed yarns are usually supplied by the mohajan to the weaver on a weekly basis to produce cloth of a prescribed pattern. At the end of the week, the weaver hands over the woven cloth and receives payment on a piece-rate basis, and gets fresh supplies of yarn for the coming week’s weaving.



Master weavers
The present day master weaver does not have to know weaving or come from the weaving community, he is simply a merchant. There are two types of master weavers: the first type owns the production establishments and mainly employs outside labourers. The other type does not own any production n equipment and is a true merchant, being known as dadan masters or mojohans, as described above.



Workers or karigar weavers
These weavers are simply the workers employed on a wage basis. They possess neither the looms and the accessories nor the working capital. This class of weavers is said to come mainly from the landless agricultural class and the dadan weavers. It is important to understand that weaving is considered easy work, probably because it is compared to agricultural work and rickshaw cycling.



Competition in the local market
The mill industry can influence the hand-weaving industry in two ways. It can affect the decentralized handloom industry favorably by concentrating on spinning and supplying yarn. On the other hand, large-scale mills can adversely affect the demand for traditional handlooms by expanding their supplies of cloth to the market. The small-scale power-loom industries as well as the import of cloth also play a competitive role with the handloom industry.



Export potential
Grameen Uddug has done a great deal to develop the handloom industry for export, concentrating on the so-called Grameen check fabric. The Grameen Uddog deals with 100 000 weavers, also being able to meet their credit needs, to provide an institutional infrastructure to buy yarn in bulk, have it processed, enforce quality control and marketing the fabric to the RMG industry as well as exporting it.



Mr. Latif suggests that it is possible to build forward linkages from the handloom industry to the Readymade Garment (RMG)/Clothing industry, strengthening the export potential of both industries.

Product design
“Product development makes sense only where there is a defined marketing strategy based on sound market research,” says Viand Chand. This may be so. On the other hand, market research can only answer to the known needs and wishes and has to be combined with innovative product development. Innovative product development based on solid market knowledge is the job of designers.


The general problem in Bangladeshi textile production is the small numbers of available designers. It is difficult to know how many there are, as there is no designer organization with a membership list indicating the numbers. The lack of designers also mean that whenever a designer, trained in-house, move on, there is no one of equal ability to step into the vacancy.

There are very few designers in the garment industry or in crafts with a degree in design. The ones that do have a design education are educated abroad, - many in India and some in the West. Some of the designers working in the craft businesses have an education from Dhaka Institute of Fine Arts. Although this educational background in combination with experience from the craft businesses, in many cases seem to work well, some say that a lot of people in the trade do not understand the difference between an artist and a designer, “Design is planning step by step and the artists do not know how to do that”. Others say that the creativity exists, but that the understanding of the market is lacking.

One of the first classes Jackie Corlett taught in her workshops in Bangladesh in the early 90ies tackled the similarities and differences between artists and designers. It drew some very enlightening responses, she says. Some very clearly thought design activity was some lower form of artistic life, notably those with MFAs, others could not see any difference at all at first. It was important to establish that it was not qualifications that made a designer but rather a certain outlook on life, and attitude to learning.

It seems to me that there are more fashion designers than other kinds of designers, this also being reflected in the educational system. I heard of only two product designers and both were from other countries (Germany and Australia). The level of graphic design is supposed to be comparable to the 60ies and 70ies in the Western world.



Production
It is important to understand that the Bangladeshis, both in the large mills and in the small crafts businesses, put a lot of emphasis on labor-intensive production. There is no social security system taking care of the unemployed.



Technology
The general level of technology in one of the “least-developed” countries is naturally very different from the level of technology in a developed country like Norway. The simplicity of the available technology is obvious in the handloom industry. The jute mills say that they can often use old European machinery, i.e. has Sonali bought old flax machines from France. The mills have to use machines made for other raw materials than jute, as there is no jute machinery being produced, anyway.


The DTC, the Design and Technology Center claims, that some government institutions do have jacquard looms, textile machinery and computers, but that they do not know how to utilize the equipment.

Quality
The topic of quality is regarded as a very important, and quite difficult one, by all my contacts in Bangladesh.

The distance between the rural women and the market is tremendous, and the comprehension of the term “quality” is not consistent. How can a poor rural woman comprehend the life style of well-off Westerners or the urban middle class in Bangladesh?

All the businesses and NGOes that we have spooked to, work very hard securing quality. Quality control is entered into the production process at different intervals.

These major challenges are described by some of our contacts:

The quality of the fabric itself, regarding i.e. colorfastness etc

The quality of the work, i.e. the sewing

The understanding of sizes in general and also the need for all the products in a production line to be of the same size. One of the companies commented that the buyers always want all products to be just the same as to color and size, but that this, however, is not always important to the consumer, who is only going to buy one piece, anyway.

The delivery to the buyers - Delivery can often be a problem, as there is a certain unpredictability in the service of the Bangladeshi shipping harbors.

ISO certification is not being seen as important to the small crafts businesses. This may, however, be different in the larger industries.


Creativity
Many of my informants touched upon the question of creativity, saying that it is a great problem in the Bangladeshi society that the school system does not stimulate to creativity. The children and students are taught to repeat what they are told by the teachers, not to think themselves. There is no arts or crafts being taught in the public schools. Teaching at the new design oriented institutions like the BIFT is a challenge because of the lack of creativity exposed by the students when they start their studies.


One designer said that the true creativity in the Bangladeshi society is to be seen by the very poor, who would not survive if they were not able to develop creative survival strategies.


Design
The tasks that should be undertaken by companies using design effectively include responsibilities such as:

Submitting considered schemes at a management level on how design can be integrated into the company's aims and objectives

Thinking and planning strategically how design can be placed within the company's structure to ensure optimum interaction

Recommending the use of design as a business resource to generate revenue and encourage cost reductions to benefit the company

Assessing the risk factor in new design ventures and managing innovation

Actively seeking appropriate opportunities to use designers' skills within the company

Giving guidance to designers and others when necessary, on design practice in relation to the overall design strategy

The list mentioned is not exhaustive but does show some of the crucial points, which can be put to good effect in the context of businesses in countries like Bangladesh. Obviously however certain resources are required in order to encourage these kinds of practices, most notably trained designers who are also able to manage design. This use of design as a resource in business is a long way off in Bangladesh. The consequence of a notable lack of formal design education in Bangladesh does not appear to preclude an ability to carry out job responsibilities. With an involvement of the designer at all stages of the production cycle there is a fuller understanding of the considerations necessary when actually designing a product in the initial stages. This is where designers in development situations can be in an advantageous position.

Thursday 28 December 2006

Textile Industry Scenario of Bangladesh-2

About Bangladesh

Bangladesh is a poor, agricultural society with 130 million inhabitants on 144 000 sq. km. With app. 900 people per sq. km, the country is the most densely populated country in the world. The majority of the people are Bengali (98%), some 250 000 are Bihari and around one million are different tribal people. 88 % of the population are Muslim, 11 % Hindu, and 1 % have other religions. The People’s Republic of Bangladesh is headed by President Professor Dr. Iajuddin Ahmed. The present government is run by the BNP whose Prime Minister is Begum Khaleda Zia. The Awami League is the largest opposition party. The average age of living is 58 years for men and 59 years for women. 49 % of the adult men are illiterate as compared to 71 % of the adult women. Bangla is the local language. Educated people also speak English. The unit of currency is the Taka.

The country is mostly flat farmland divided by numerous rivers, the main ones being the delta of Ganges and Bramaputra, called the Padma and the Jamuna in Bangla. For Bangladesh, annual flooding is a way of life. Much of the flooding is regarded by farmers as beneficial, replenishing the worn soils with nutrients. The principal crops are rice, jute, tobacco, tea, sugarcane and vegetables. About 10% of the country is still forested. There are two hilly areas, one in the northeast and one in the southeast. Most of the tribal people live in these areas.

Preserving the environment is not as much a priority as human survival in Bangladesh. About half the population is living below the poverty line and most of them are extremely poor. In spite of the relatively high economical growth in the 90ies the reduction in poverty has only been 1 % per year. The gap between the poor and the wealthy sections of the population is increasing. The most important industries are jute manufactures, ready-made garments, cotton textiles, seafood processing, and pharmaceuticals.[1] The most important trade partners are EU, USA, Hong Kong, Japan, India, China and Singapore. The seaports of Chittagong and Mongla are instrumental for exports as are the airports in Dhaka, Chittagong and Sylhet.

Norway has been providing development assistance for Bangladesh since the country seceded from Pakistan in 1971. Since 1975, Bangladesh has been one of the main recipients of Norwegian development assistance and is now one of seven main partner countries. Norway focuses its efforts on education, economic development, improved governance and human rights. Despite sustained domestic and international efforts to improve economic and demographic prospects, Bangladesh remains a poor, overpopulated, and ill-governed nation. It is one of the so-called “least developed” countries. Major impediments to growth include frequent cyclone and floods, inefficient state-owned enterprises, inadequate port facilities, a rapidly growing labour force that cannot be absorbed by agriculture, delays in exploiting energy resources (natural gas), insufficient power supplies, and slow implementation of economic reforms. Economic reform is stalled in many instances by political infighting and corruption at all levels of government.


The Textile and Clothing Industry

International trade involving textiles and clothing represent a classic example of “managed trade”. During the 1974-94 period, international trade in textiles and clothing were negotiated bilaterally and governed by the rules of the Multifibre Agreement (MFA). On January 1, 1995, the Agreement on Textiles and Clothing (ATC) replaced the MFA and became part of the World Trade Organization (WTO) agreements. The ATC provides for the complete integration of textiles and clothing into the WTO regime over a 10-year period ending on January 1, 2005. Quotas will be eliminated at the same time.


World trade in textiles normally divides the products into three separate categories:
-Textile fiber
- Natural fibers
- Cellulosic fibres
- Synthetic or non-cellulosic fibres

International trade in textiles and clothing has changed substantially the last twenty-five years. Developed countries are increasingly relying on developing countries for exporting clothing.

Textile production is relatively capital intensive while apparel production is relatively labor intensive. Bangladesh, being a labor-abundant country, started the process if industrialization by concentrating on labor-intensive products such as clothing. Textiles and clothing account for about 85 % of total export earnings of Bangladesh, the clothing industry alone employing 180 000 managers and 1.5 million workers, of whom 1,2 million are women. The country has become a significant exporter of clothing within a short period of time. The important question is whether Bangladesh will be able to maintain or improve its competitive position in clothing after the 10-year transition period of the world trade agreement, which comes to an end in 2005. In a liberalized trade regime, competition among textiles and clothing exporting countries is likely to become intense.

Implementation of the comprehensive world trade agreement involves:
Abolition of quotas under the multifiber arrangement (MFA)
Reduction of tariffs on textiles and clothing of 21 % for industrial countries and 14 % for developing countries
Reduction of agricultural output subsidies by 20 % and export subsidies by 36 %

The impact of the world trade agreement is predicted to be growth of output of textiles to be negative in developed countries such as Australia, New Zealand, the European Union, North America, and also in Latin America. Output of textiles, in contrast, will grow substantially in Asian, China, the NIEs, and South Asia and modestly in Japan. For a developing country such as Bangladesh, low relative labor costs may not be sufficient for improving the competitive position of the clothing industry. Greater competition from China and India, which both have a well-integrated textiles and clothing industry and even lower labor costs than Bangladesh, can be expected.

Productivity in apparel and other sub-sectors of Bangladesh are substantially lower than that in other developing countries, including India, Pakistan and Sri Lanka. It also appears that this productivity gap has widened. Professor S. Islam suggests in his book “The Textile and Clothing Industry of Bangladesh in a Changing World Economy” that the demand for South Asian clothing is quite sensitive to price changes. This is consistent with the fact that South Asian countries typically export standardized low-value-added apparel products. Low labor productivity in Bangladesh may be responsible for the relatively high unit labor costs compared to the major competitors. In countries were the share of wages is quite high, the apparel industries are concentrating on high-value-added products.

The clothing industry often produces in the way of production sharing. The garments are for instance cut in one country and assembled in another. This trend may well be changing. Fully vertically integrated manufacturing seems to be a growing trend, meaning that the production of thread and yarn, fabrics, cutting and sewing the apparel is done in one place. This can be seen in Mexico i.e., due to the need of increasing the competitiveness relative to Asian competitors who all want a part of the large US market.

The European Union (EU) is the leading market for apparel, with a share of world apparel imports of 42 % in 1997. The EU imposes no quotas on textiles and clothing from least developed countries including Bangladesh. Textiles and clothing from the least developed countries also enter the EU duty free. Bangladesh relies heavily on the European Union and the United States for exporting clothing. Japan is the third largest market for textiles and clothing after the European Union and the United States. In recent years Japanese textile companies have increased investments in Asian countries such as China and Vietnam. The market share for Bangladesh in Japan’s apparel imports was only .6 % in 1997.

During the last decade or so, Bangladesh has substantially liberalized its trade regime, moving away from costly protectionist policy toward a more export-friendly trade regime. The current industrial policy has identified the textile and clothing sector as one of the “thrust” sectors in the country.

The experiences of textiles and clothing producing countries seem to suggest that a labor-abundant country, which is in an early stage of industrial development, is likely to specialize in only one component, as for instance clothing. As the country moves into higher stages of development, it acquires the capacity to develop other components such as yearns, fabrics, synthetic fibers, chemicals, textile machinery.

Recent years have seen concerns being raised about the viability of the textile sector in Bangladesh, due to the heavy dependence on imported outputs. Export-oriented sectors such as clothing have little linkages with domestic-market-oriented sectors as for instance the handloom industry. It had been argued that Bangladesh may loose its competitive position relative to other South Asian and East Asian countries in a liberalized trade environment because the textile and clothing sector of Bangladesh lacks “backwards linkages” (UNCTAD 1998).

Sadequel Islam concludes in his book “The Textile and Clothing Industry of Bangladesh in a Changing World Economy” that positive development is only possible if

“Trade and industrial policy instruments must be coherent and consistent with the stage of industrial development,

Shifts from assembly-type operations to exports of high value added products require development of a well-integrated textiles and clothing industry, and

The “system loss” due to corruption and government failures in implementation of policy instruments needs to be reduced, in order for government policy to become credible.”

The future for Bangladeshi textile production lies in high-value-added production. High-value-added production requires a host of highly qualified, internationally oriented designers.

Jute
Jute is the major textile fiber growing in Bangladesh. During the British colonial time, jute was taking over where earlier very fine cotton had grown, used for the famous Dacca muslin. Nowadays, the production of cotton and silk is much smaller than the demand and most often these fibers have to be imported. India is the world’s largest producer of jute and also its leading consumer of jute. Bangladesh is the only other major producer of jute. Bangladeshi jute is supposed to hold a high quality. Jute has, however, a low price image in the local market

In Bangladesh, 70 % of the population is working in the agricultural sector. 25 % of the population is directly affected by jute production and many more on the industry. Jute provides a necessary break between rice crops and helps to enrich the soil. It also provides a vital cash flow for people who live at the very margins of subsistence.[2]

The jute industry is a so-called “sunset” industry. Synthetic substitutes play a great role in the downfall of the jute industry, as many of the earlier jute products, i.e. packaging and carpets, now have been substituted by synthetics.
The entire jute industry in Bangladesh is loosing money, my sources said. The government-owned mills are losing the most. Investment is available with great reluctance. Pubali Jute Mills Ltd. has reduced its losses the past year thanks to a product being developed in the wake of the jute project, - a gardening product using jute “wraps” to shield the roots of plants during transport. Jute is now also used in paper production.

Chand´s report states that there are positive signs in export markets for-
a) Food grade sacks that do not use machine oil during processing
b) Natural fiber geotextiles
c) Garden products
d) All jute carpets

This sack like weave still provides the backbone of the jute industry, being used for shopping bags and packaging, webbing, substrates, barrier fabrics, tarpaulin, reinforcement, belts, canvas, carpet backing cloth and Hessian. This quality is also suitable for geotextiles.

Finer weave

The finer weave is today the minimum threshold for consumer products, being used for soft luggage, industrial fabrics and as substrates.

The Jute Research Council in Bangladesh has produced a blended 60 % cotton/40 % jute yarn that has successfully been used in a variety of handloom fabrics from the craft business Prabartana.


The Dutch design company LA Colors worked as consultants in the project’s first years. The project participants grant much of the honor for their success to the Dutch designers. The fact that the project was not planned in detail, allowing for development and changes during the project period, are also mentioned as a positive experience. Thirdly, the length of the project period is seen as positive. Getting started in a serious manner took a long time, says one of the textile mills.

The interior decoration market is a much smaller and specialist fashion driven market than the textile market. The markets that can be targeted by the fabric itself are ten times bigger than those than can be targeted for the treated fabric.
Chand´s report states that the ideal growth pattern for the jute industry is to supply large buyers with industrial products. The need for diversification of the jute production in order to obtain greater volume will have to be one of the conditions for potential product development projects.


Managing Director Kamran T. Rahman expresses a special interest in product development of non-woven textiles.

Textile Crafts

Bangladesh has an established place in the history of textile trade. In the capitals of the world the region was known for the high quality of its products, its unique designs and techniques of production. Especially the exquisitely fine cloth from Bengal, known as Dacca Muslin, was very highly prized. This cloth was so delicate that it could only be woven at dawn whilst the dew still hung on the threads, and the surest test of quality was that a full sari length (6 yards) could be pulled through a woman’s ring.

Today textiles make out 60-70 % of the total crafts production in Bangladesh. The NCCB claims that crafts still employs the second largest segment of the population, after agriculture. It is therefore critical to the NCCB to undertake programmers, which will not only promote the fine traditional skills of the country, but also stem the flow of urban migration of millions of artisans in search of a livelihood. Some say that crafts could have been the breadbasket of Bangladesh. Others claim that crafts is another domestic commodity that developing countries can use to help balance their export / import books, just like coffee, jute or sugar, but that it unfortunately is not credited with the same level of investment.

In the Bangladeshi society craft work and industrialization seem to be co-existing quite happily. The divide between hand made and machine manufactured known from the times of the Industrial Revolution in the western world, does not appear to be taking place in Bangladesh, certainly not at a pace one might expect. Therefore it can be just as feasible, in terms of cost, to order a hand made chair to your specifications, as it is to purchase a machine made one. Jackie Corlett writes that a possible reason for this is caste. Before the Muslim Moghuls conquered Bengal in the 13th Century, the indigenous religion had been predominantly Buddhism and Hinduism. Much of the Hindu culture remains, particularly in special celebrations and the strictures of the caste system. Many of the traditional, as opposed to the trained, craft workers are from Hindu families who have practiced the same craft for generations. Most craftwork tends to be a low caste activity, clay for example is of the earth and therefore not given a high status, similarly leather workers have a low status because they deal with shoes and the feet. Craftwork is generally seen as a low status activity, albeit admired in its final results

There is quite a number of “crafts shops”[3] in Dhaka selling clothes, accessories, home furnishings, and to some extent, basketry, ceramics, candles, cards etc. A Norwegian, having lived in Bangladesh for six years, complained that there had been little innovation regarding the assortment in the shops during her stay. The crafts shops are selling mostly traditional Bangladeshi clothes and crafts, but many are also making new collections and new products, like the youth collections of Aarong and Prabartana mentioned in this report. One shop, The Salvation Army´s Sally Ann, differed from the other crafts shops, selling a home furnishings production line with a “western look”. The shop “Essentials”, selling the “Misty Waters” jute/cotton/silk fabric collection, was run by some young Bangladeshis and had a “westernized” interior design profile.

Skills
On the one hand the skills in textile crafts, i.e. the embroidery skills demonstrated in finished products, are quite impressive, on the other hand are many of the craftspeople initially unskilled, taking a lot of training to produce the necessary quality. The labor is cheap, but, accordingly, largely unskilled. Some of the crafts businesses try, however, to find workers with at least basic skills in reading and numbers. One particular aspect of working with unskilled labor is that it is often difficult to make people do something that they are not used to. Many are illiterates used to doing routine work.

There are many and varied textile skills in Bangladesh. We have concentrated on getting to know the techniques selected by the NCCB for the exhibition planned for October 2003. The other techniques mentioned we tried to explain.

Dyeing

As synthetic dyes have to be imported, it is worth noting that at least one company, Aranya, is working with natural dyes.

Weaving

Naturally there are a lot of impressive woven fabrics, mostly saris, especially impressive considering the technology used. The thin, transparent Jamdani saris with their distinct decorative patterns seem to hold an especially high status in the Bengali society. Being the work of two people in one month, the price for a Jamdani sari lies well above the ordinary level of textiles. Also the brocaded borders of many saris are elaborate and exclusive. Most of the hand-woven fabrics, however, are woven in simple, plain weave, like i.e. the lungi, a sort of skirt worn by the men.

Printing and tie-die

It seems to me that block print is still the major printing technique, using handheld blocks. I have also seen some examples of wax printing and freehand batik, with wax covering part of the fabric stopping the dyestuff from entering into the fabric. Tie-die is also available, sometimes combined with wax print in the same product.

Embroidery

There are many examples of time consuming embroidered decorations on clothes and home furnishings. The Kantha embroidery technique, a simple stitch, is used for all kinds of products, from tea cosies to cushion covers. Originally Kantha embroidery was made in the homes, sewing layers of worn out clothing together to a quilt with a characteristic rippled surface. The women would compose their own Nakshi Kanthas. This embroidery technique has a long past in which it developed as a way of recording stories and events using needle and thread in a spontaneous style. Now, Kantha embroidery products are made on a commercial level, being designed by professionals. The stitching technique and the designs do not hold the same quality as in the old Nakshi Kanthas. However, a number of embroidery techniques are being used, including application and mirror work.

Sewing

Sewing is the common denominator of all the textile crafts products, except for the saris. Also in this field, the lack of basic skills can be problematic. I was told that the tailors were good at making traditional regional clothing, but that sewing westernised clothes were more difficult, as few were able to take correct measurements and shape patterns accordingly.
Products

Textile crafts products in Bangladesh are versatile and can be divided into three main categories:

Fashion

This includes all kinds of clothing, but, because of the tropical and subtropical climate, what we would think of as summer clothes. The traditional saris and shalwar-kameezes for the women and the long shirts for the men, are being supplemented by international style clothes as shirts, jackets and kimonos as well as “fusion” clothes, often preferred by younger people.

As far as I can see, the Bangladeshi are doing well at supplying clothes to the local market and possibly have a market in the entire subcontinent where saris and/or shalwar-kameezes are worn in all countries. The clothes that are made for a western or international market, however, are not the kind of high-value-added items directed at niche markets that will be needed for exports. The need for western or international design input is quite obvious, probably more in the cut of the clothes than in the weaving or decoration.

Fashion accessories
Scarves are an important part of women’s clothing in Bangladesh, always being used with the trousers and long blouse of the Shalwar-Kameez. Large “scarves”, called throws, are used to cover up in the so-called “winter”. Handbags are also a large product category.

Home furnishings
All kinds of bedspreads, table cloths, curtains and cushion covers are seen in the crafts shops, as well as almost any kind of imaginable textile product for the home.

In order to appeal to a western or international market, there is a need of product development, especially regarding materials, colors and sewing.
The Production Process
The production process in the crafts sector in Bangladesh is different than the one known in western machine or hand production. There are many elements, each maybe involving new people and separate financing. The dyer is not the weaver, the weaver may not be the one preparing the warp, the printer is yet another person etc. The complexity of the production process is a challenge, both as far as planning production, getting the desired quality in the end product, and getting the desired quality on time. Most crafts businesses and NGOes try to establish work centers to avoid working at home. Homework increases the risk of soiling fabrics, making them unfit for sale.



This is one example of the elements in a production process:

Buying yarn
ß
Dying yarn (quality control)
ß
Supplying yarn to the weaver
ß
Instructing the weaver
ß
Weaving the fabric (quality control)
ß
Treating the fabric
ß
Decorating the fabric with block print/tie die/wax print/embroidery (quality control)
ß
Sewing the finished product (quality control)

Export

The total crafts export is estimated to 34-35 million taka per year (Banglacraft). Some craft businesses work 100% for the export market. Most likely the majority would like to have a 70/30 percentage with exports making out 30%. This is certainly the case for Aranya, whose director Ruby Ghuznavi, claims that 1-2 export orders per year would suffice. She then calculates with 3 months delivery time.

Other countries in the region, like India and Thailand, have achieved great success in promoting their textiles worldwide. They have done so by developing institutions for design and technical support, matched by well-documented publications and promotional exhibitions within their countries and abroad. The Export Promotion Bureau is supposed to be promoting Bangladeshi products to the world markets

The Export Promotion Bureau

The Export Promotion Bureaus is a governmental institution, giving priority to a number of activities, some mentioned here:
Simplifying export procedures, and helping the private sector achieve efficiency. The Govt. desires more and more involvement of the private sector while the govt. will continue to play its facilitating role
Enhancing technological strength and productivity and facilitating reduce cost and attain internationally accepted standard of quality of exportable products and thereby consolidate their competitiveness
Participation in the international trade fairs, specialized fairs, single country exhibitions abroad and also sending out trade missions, with a view to consolidating our position in the existing market and creating new markets;
Organizing regularly international trade fairs and product-specific fairs with the country making appropriate development and expansion of infrastructure conducive to export.
Making arrangements for necessary technical and practical training for development of skilled manpower in the export sector
Ensuring maximum utilization of financial and other assistance extended by the World Trade Organization to the Least Developed Countries.
Extending technical and marketing assistance for development of new products and for finding appropriate marketing strategies.

The Export Promotion Bureau is being widely criticized for making exporting more difficult that actually helping the textile and craft businesses. The EPB do take the businesses to tradeshows, though, and even if the there is very little exposure space for each participant, the participation is subsidized and can be made useful.

Trade shows or agents?

The participants in the NORAD jute project have taken part in the Heimtextil fair in Frankfurt several years, and will continue doing so. The jute products are niche products needing to be exposed in exhibition halls with other high quality products, not in a “3. World”-context. The jute project participants have succeeded in getting a good exposition position at Heimtextil.

Aranya has also taken part in international trade fairs with good results, but Ms Ghuznavi finds the cost of participating very high and would rather have an agent connecting Aranya to the buyers. So does Prabartana. Esheeta, on the other hand, does not want an agent because Ms Dewan does not want anyone to become “sole agent”. Even so, it is obvious that agents would bridge the gap between Bangladeshi producers and the international market, providing the “missing link” in the producers´ way to new and unknown markets.

In the report on the Norad jute project, Mr. Chand suggests that the buyers should rather be attracted to the sellers through the internet, editorial publicity and “a few well placed advertisements”, than spend a lot of money on participating in trade shows.

The Handloom Industry

Most of, or maybe all, the fabric used by the crafts businesses and the NGOes involved in crafts production are hand-woven. The handloom industry has long been the premier source of employment in Bangladesh outside of agriculture. At least up to the mid-1970´s, from time immemorial, the handloom industry has been the predominant source of clothing for the majority of the people. Even today it is said that the handloom industry supplies 77 % of the textiles for the local market. Nearly one million people are directly employed in production activity, and also a large number of people are indirectly employed in yarn and cloth trade linked with handlooms. The position of the handloom industry in Bangladesh is unique, because a much larger share of the total production is still being provided by informal handlooms than by the organized mill and power-loom industries.
Materials
Bangladesh has remained a net importer of yarn at least since 1947. Almost all yarns are imported, warp silk from China, cotton from China and India. Some local silk and cotton can be used for weft. Jute, which is locally grown and an important agricultural crop, has a lot of potential, especially the softer material developed in the Norad project as well as blends. The Jute Research Institute has made an interesting 40 %jute/60 % cotton yarn. Jute/silk experiments – silk warp and jute weft - have also been conducted, showing that a softer jute yarn is needed.

One textile designer claims that “Interesting yearns are made only for exports.” Thin yarns for the handloom industry are machine spun. Hand spun cotton is used in the fabric called “khaki”, a thicker cotton quality. Linen also has to be imported and is too expensive to be used in any quantity. Synthetic dyes are imported. Natural dyes, except madder, which has to be imported, are grown locally. Some international designers using the Pantone color system face problems, because they do not take the availability of dyes and the working process of the dyers into consideration.


Wednesday 27 December 2006

Textile Industry Scenario of Bangladesh-1


Introduction

Industrialization plays a vital role in accelerating the economic development of a country. It offers substantial dynamic benefits that are important for changing the traditional structure of the less developed economy, and the advocacy of industrialization may be particularly compelling for primary export countries that confront problems of a lagging export demand while having to provide employment for a rapidly increasing labor force.

In a predominantly agricultural country like Bangladesh, industrialization is one of the most significant processes in economic development of the country in so far as industries process agricultural product into manufactured goods, supply both consumers and producers goods mostly for the use by the people of the country, great job opportunities for employment of the growing labor force, earn foreign exchange through exports of the goods; save foreign exchange by substituting imports of the goods; generate income for investment in various sector of the economy; reduce dependence on foreign countries for essential commodities and develop backward regions of the country there by correcting regional imbalances in the industrial sector.

The present Bangladesh has a sizeable number of industries mostly inherited from the pre-liberation days. The large scale manufacturing industries in Bangladesh consist of about a thousand enterprises each employing, on the average, just over 300 workers. The contribution of these industries to economic development of the country can be seen mainly in terms of contribution to the Gross Domestic Product (GDP) of the country.


The rationale of industrialization: the background of General and Asian experience specially for Bangladesh

Recent researches have supported a shift away from the old obsession that industry plays a predominant role in economic development. Even in advanced capitalistic countries (like the U.S.A, U.K., Belgium, Australia and Japan), results of investigation have supported the conclusion that the direct contribution of man-hours and capital accumulation hardly account for more than 10 p.c. of the rate of growth in per capita product, the large remainder being assignable to increase in efficiency in that productive resources i.e. a rise in out put per input unit is either due to the improved quality of the resources or to the effects of changing arrangements, proved quality of the resources or to the effect of changing arrangements, or to the impact of technological change or to all three.

The Denison study of the U.S. pattern of growth has reinforced the above conclusion with a clear indication that in modern economic growth, “the ratio of capital to output was kept down by capital-saving innovations, investment in human training and other arrangements producing greater output with diminished relative supply of natural resources and even of productive capital”. For the capital-poor less developed countries, this advantage of reduction in the relative shares of contribution to growth is not available simply because of the status of underdevelopment (in which the economies of scale and spread of technical knowledge are matters of long range growth dependent on the growth process it self). The situation in the poor developing countries, especially in the problem-infested economy of Bangladesh, is characterized by-

(a) Serious scarcity of capital,
(b) Lack of opportunities of capital-saving labor-intensive technical change, and
(c) Inability to resist application of capital-intensive technology in industrialization.

In fact, for industrialization, the contemporary poor developing countries need the technology (which was less capital-intensive) developed more than hundred years back by the present developed countries, but such a technology does not exist today; that was scrapped long time back for the evolution of the modern technology which suits the relative factor endowments of these developed countries. The critical issues thus revolve round a central problem that they need to develop the growth-including sources of contribution before achieving sustaining growth; issues of industrialization stem from the same.

Industrialization needs heavy investment, which is justified on the grounds of induced structural changes (e.g., rise in the relative importance of manufacturing industry change in the composition of industrial output and change in production techniques) which are growth producing. Industrial growth is, however, primarily caused by the process of import-substitution, growth in final demand and growth in intermediate demand arising out of the former two. It is even possible to interpret patterns of industrial growth in the various regions as well as in the developed vis-à-vis underdeveloped countries in terms of a Eros-section analysis of the above three causes as the main variables. While the processes contributing to growth are important and dynamic, the emphasis on the investment criterion is often misplaced. Investigation has established that even for European countries, any systematic association between growth and investment is almost non-existent; investment itself is not a sufficient condition for a rapid industrial growth because in the sample, “no country achieved very fast growth without a high rate of investment whereas a large number of countries which were investing substantially failed to grow rapidly. This investment condition is certainly likely to be more insufficient for growth in the Asian poor countries and more so in Bangladesh where the inadequate industry structure has been continuously strained by non-economic factors of allocation of resources.

On economic considerations, the problem of choice for investment criteria based on production techniques is, indeed, vital. But this problem of choice of techniques is intermingled with that of the choice of industries and their scales. Investment allocation to large-scale factory production does not produce employment-relief in the situation of a huge backlog of unemployment and high rate of growth in the labor force; and allocation of investment to the textile industry sector increases the opportunities of employment-relief. But decision making on allocation of recourses just on the basis of the above broad employment implication may not be feasible.

There cannot be any fixed pattern of combination of large, small and textile industry obtainable from a study of a typical group of developing countries that can be prescribed as the best or the second best optimality in recourse allocation. Emperical studies of the experience of Asian countries have concluded that the analysis of the problem of the textile sector and the factory sector need be treated separately, because the working of the mechanism of capital accumulation and growth is different and the criteria for the choice problems are also different between the two sectors. The comprehensive study by Ishikawa concludes:

“Once the difference in the patterns of production functions among the different branches of industries is taken into consideration, it will become evident that text-book type discussions on the problems of choice of techniques or scales of production in complete isolation from the choice of industries is unrealistic; the actual choice of the former is always influenced or sometimes even governed by the choice of the latter and, speaking more realistically, both choices are interdependent. In addition to these interdependent decisions, the smallness of the national economy and the availability of national investment resources also assume important roles as additional constraints.

All these countries including the limitations of choice are formidable for Bangladesh where even the current non-investment requirements of resources could not be reasonably met. In this economy, although planning efforts are officially pursued, the really efficient allocation criteria can hardly be conceived in the midst of so many priorities of irresistible character.



The First Five Year Plan, which has already greatly outlived its discipline by the first combat with the realities during the first year, envisaged a five-year investment target of tk.895 core (of which only 15.6% was earmarked for the private sector and this is to be limited to small and large textile industry). This program is expected to create about 6,00,000 job opportunities in the ratio of 1:5.37 for the public and private sectors which implies an investment cost of a job creation at Tk.77, 500 for the public sector and Tk.3, 000 for the private sector. Where the planning of the public sector job creation at a capital cost 29 times higher than that for a private sector job creation is justified or not will depend on guidance from a comprehensive cost-benefit analysis designed for the purpose.

The Plan document does not provide any guidance nor indications of the required technical analysis; even the evaluation of economic development in 1973-74 (the first year of the execution of the plan, if this can be considered as execution) published by the planning Commission does not attempt a checking of the basis of the assumption with reference to results of application in the projects and programmers concerned.

A close examination of the composition of the proposed industry programmer will convince anybody that the Planning Commission aims to lead the forces of industrialization on the tracks of capital-intensive investment allocations only to aggravate the already critical resource constraints in the country. As a first taste of this aggravation, the poor performance of industrial product in 1973/74 is known to have been largely caused by a significant short fall in the volume of imports in real terms even for a little better operation of existing capacity.


List of Industries
Private industries
Government industries
Jute industries
Fertilizer
Chemicals
Textile
Sugar
Paper
Ship Building
Soft Drinks
Electronics
Cement
Automobile
Servicing-Electricity/Gas
Electronics
Cement
Steel
Soft Drinks
Melamine
Garments
Pharmaceuticals
Textile
Jute

Ceramics
Lather

Soft ware
Steel

Automobile
Fishing
Packaging

Ship Building
Garments Backward linkage
Chemicals

Electricity
Fertilizer
Paper
Small and Cottage
Tourism

Good Performing Industries:
a) Garments
b) Pharmaceuticals
c) Soft ware
d) Fertilizer
e) Servicing (Electricity/Gas)
f) Garments backward linkage
g) Small and Cottage
h) Cement
i) Ceramics
j) Paper
k) Lather
l) Melamine

Industries falling into Danger:
a) Jute
b) Steel
c) Sugar
d) Textile
e) Ship Building


Those industries, which have good future:
Software industry
Garment’s backward linkage
Pharmaceuticals
Small and cottage
Tourism


List of Textile Mills
PRIME TEXTILE SPIN MILLS LIMITED (12002)
BEXIMCO TEXTILE LIMITED (12007)
BEXIMCO KNITTING LIMITED (12010)
PADMA TEXTILE MILLS LIMITED (12011)
ASHRAF TEXTILE MILLS LIMITED (12020)
MITA TEXTILE MILLS LIMITED (12021)
SONARGAON TEXTILE LIMITED (12022)
HR TEXTILE MILLS LIMITED (12024)
TAMIJUDDIN TEXTILE MILLS LIMITED (12026)
SAIHAM TEXTILE MILLS LIMITED (12030)
SREEPUR TEXTILE MILLS LIMITED (12014)
EAGLE STAR TEXTILE MILLS LIMITED (12016)
DYNAMIC TEXTILE MILLS LIMITED (12019)

Types of Textile Mills:
Generally we can see two types of textile mills. They are-
a) Oven and Knit Fabric
b) Only Knit Fabric


Some names of Oven and Knit fabrics are-

Asian Textile
Sinha Textile
HR Textile
Sayham Textile
Hamza Textile
Satarupa Textile
Finix Textile
Nayagra Textile
Mymun Textile
Beximco Textile


Only Knit Fabric Textile mills are-

Padma Poly Cotton
Saqura Knytex
Epylon Knitex
Beximco Knittting Limited
Prime Textile and Knitting




National Crafts Council of Bangladesh

National Crafts Council of Bangladesh (NCCB) contacted early in 2003 The Norwegian Embassy in Dhaka with plans for the publication of a book on the major textiles traditions of Bangladesh, tracing their evolution from the trade for royal courts and luxury European demand to fine products for the contemporary marketplace
The presentation of an exhibition where it will be demonstrated how traditional artisans could interact with designers and craft developers to innovate and diversify their products
The organization of workshops to explore the importance of developing institutional support for handloom textiles so as to ensure a high-value market and to develop future strategies for the promotion of the handloom sector

“Design without Borders” (DwB) was asked to see how our development program would be able to contribute in such a context.

Design and product development in Bangladesh

”Design without Borders” needed more information about the above-mentioned projects, as well as about Bangladesh in general; in order to make feasible suggestions and to see which role DwB might play in the development of design in textile production in Bangladesh. Our focus was on
(1) Design and product development (textile crafts and jute fiber)
(2) Design education
Both BNCC and the jute project focus on production for export. ”Design without Borders” has not earlier been involved in export-oriented projects and accordingly do not have marketing and export expertise.

We started on our talks with the elected leaders of the National Crafts Council of Bangladesh, the participants in Norad’s jute project, representatives from a couple of design institutions and other crafts or design organizations. All we have met have been most helpful and have also led us on to new contacts. We are very grateful for all the information we have been given. Should there be incorrect information in this report, this reflects on us and not on our sources.

This report has textiles as its theme. Obviously, it offers no comprehensive description of the overall situation for Bangladeshi textiles and textile production. There are certainly limitations to our knowledge. One important limitation is imposed by the programmer profile of Design without Borders itself. Another limitation is the number of people we managed to talk to and the interests they were representing, and even if we managed to get hold of some interesting literature in Dhaka, we do not contend that this literature is covering the entire field.

After defining some of the terms used in the report, there is a short introduction to Bangladesh in order to give the reader a little background information. There is also an overview of the textile and clothing industry, its importance to the Bangladeshi economy and the challenges it will meet after 2004. This chapter also covers the locally grown fibre, jute. Chapter 6 on the crafts businesses and NGOes gives an introduction to Bangladeshi textile crafts as well as a description of the handloom industry. After that on product design we try to describe some of the particular challenges of working with textile design in Bangladeshi, and also present a number of design models. Lastly, we discuss the different markets available to Bangladeshi textiles. Foreign donors in Bangladesh also cover design education here while concentrate on suggestions for future involvement in the area of textile design and product development.

Naturally, one cannot write a report on design development without running into dilemmas. The basic one is formulated by Jackie Corlett, woven textile designer, in her MA Thesis:
“Developing design skills would be wasted if used only to design new products for the richer nations…There are however a host of problems local to these designers that are in desperate need of design attention: waste disposal; educational equipment and toys; shelter; construction work; hospital equipment; work environments; etc.”

Hopefully we can contribute in a way that eventually will make Bangladeshi textile designers able to cope with this “host of problems”.


Clothing industry or garment industry
Professor Sadequel Islam, Professor of Economics in Ontario, Canada, uses the term “the clothing industry” in his book about “The Textile and Clothing Industry of Bangladesh in a Changing World Economy” while for instance the BGMEA, Bangladesh Garment Manufacturers Export Association, talks of “the garment industry”. We have used “clothing” and “garment” as synonyms.

SME or Craft producer

The SME Department in the World Bank Group is currently working with the following definitions:
a) Micro enterprise - Up to 10 employees, total assets of up to $100,000 and total annual sales of up to $100,000
b) Small enterprise - Up to 50 employees, total assets of up to $3 million and total sales of up to $3 million
c) Medium enterprise - Up to 300 employees, total assets of up to $15 million, and total annual sales of up to $15 million[1]

The Bangladeshi Small and Cottage Industry Corporation, the BSCIC, talks about the small and cottage industries sector. Small industries are defined as those engaged in manufacturing or processing or service activities whose total fixed investment is limited to Taka 30 million (US$ 0.75 million), while cottage industries are those engaged in manufacturing or servicing and generally run by family members with a total investment limited to Taka 0.5 million (US$ 12,500) only.

We have, however, avoided the term SME, and even small and cottage, as I find the terms bewildering. Instead I am talking about crafts producers, including both crafts businesses and NGOes in the term.