BANGLADESH garments exporters hitherto availing themselves of 12.5 per cent duty-free access to EU under its Generalised System of Preference by virtue of using local fabrics are to now have a wide choice in terms of raw material support. The EU’s SAARC cumulation provision which the government has accepted — without much deliberation — enables the garments manufacturers and exporters to import fabrics from countries of the region and still be entitled to duty-free access to the EU market.

Little wonder, the widening of raw material choice has found favour with the garments exporters, or for that matter, the BGMEA. On the face of it, import of fabric from India makes 'an economic sense' for them, because even after paying 10 per cent bank charge they can net a 10 per cent additional income by exporting their merchandise under the new GSP provision. The price competitiveness of Indian textile industry may give it an edge over the local textile industry exposing the latter's poor cost effectiveness in terms of production. That’s why the Indian textile manufacturers are reportedly descending on our garment factories to push this sale-point in Dhaka.

As a matter of fact, what has so far been an unofficial dependence on Indian raw materials for garments manufacturing would now be officialised.

Some RMG sector people are so supportive of the new development that they see In It a prospect for rejuvenation of the moribund industrial units. They are hopeful of a rapid expansion of the export market for Bangladesh. But this is definitely a shortsighted view of what the wider dependence on raw materials from regional countries presages. It will cripple the growth of local textile industries in the long run.

The Bangladesh Textile Manufacturers' Association (BTMA) has expressed a Justified concern that this could hinder the development of backward linkage Industry which the RMG sector needs for local value addition purposes. Keeping In view the end of MFA In four years' time this sounds like a genuine apprehension to us.

The government must go all out to save the local textile industry from any further body-blow. The sector needs to be nurtured with care to be rejuvenated.