Bangladesh's textile millers seek ban on export of garment waste

A letter sent by Bangladesh Textile Mills Association (BTMA) president Mohammad Ali Khokon to the National Board of Revenue (NBR) made the demands recently.

In the letter, Khokon said there are some 20 recycled fibre factories across the country with a recycling capacity of 2,400,000 tonnes and they mostly use garment waste as raw materials.

These factories have to pay 7.5 per cent VAT while collecting the waste and another 15 per cent VAT at the time of selling the recycled fibre to the spinners. Hence, prices of the recycled fibre have increased, he wrote.

This waste is recycled to make fibre, which is then used to make cotton yarn, fabrics and finished garments are produced from the recycled cotton, he was quoted as saying by Bangladeshi media reports.

Early last month, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan also called for immediate government measures to stop the export of pre-consumer waste.

He said less than 5 per cent of the textile waste is recycled locally, while over 35 per cent is incinerated in boilers or landfills. The remaining 60 per cent is exported to India, Hong Kong, Sweden and other countries for recycling and sold back to the domestic readymade garment industry as recycled yarn at a higher cost, he said.

It is important to incentivise domestic recycling companies, Hassan added.

Fibre2Fashion News Desk (DS)