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To sustain in the market, textile millers operating business at loss

“We should make policy and impose duties on illegally imported yarns and fabrics”

Engr. Mohammad Mozaffar Hossain MP, a newly elected Member of Parliament from Jamalpur-05, completed his Textile Engineering degree from Textile Engineering College, which is now reformed as the Bangladesh University of Textiles. He has long business experience and started his own business in 1996 later on established woven fabrics weaving mill in 2001. During his successful career, he implemented the following business enterprises: Authentic Color Limited, SIM Fabrics Limited, Mozaffar Hossain Spinning Mills Limited and SIM Apparels Limited.

He was the Ex-President of the Institution of Textile Engineers & Technologists (ITET), Ex-Director of BTMA, President of Bangabandhu Textile Engineering Association.

Figure 1: Engr. Mohammad Mozaffar Hossain, MP.
Figure 1: Engr. Mohammad Mozaffar Hossain, MP.

Yesterday on 25 February, Tareq Amin, Editor, and Publisher of Textile Today met Engr Md. Mozaffar Hossain where the leader opened up his observation regarding recent challenges of the textile industry, way outs of the challenges and his planning to uphold the industry and industry people.

Textile Today: As a member of parliament how are you feeling?

Engr. Md. Mozaffar Hossain, MP: Feeling really proud and consider myself lucky, as I am representing my people. I can listen to their woes and demands, in the end, I’ll be happier if I could fulfill my promises.

Textile Today: You gave some promises to your people as well as you are one of the owners in the textile industry. Also in the textile professional community, you are one of the prominent leaders, in this regard the textile community has a lot of expectation in you.

Engr Md. Mozaffar Hossain, MP: As a textile community representative I’ve already emphasized a separate BCS cadre division for the textile engineers and professionals. Also the issue of human resource allocation from the textile engineers under the organogram of the department of textiles ministry there are teacher colleges, vocational institutes.

Textile Today: You are emphasizing this from your current position. Besides from your vantage point as an MP pushing for passing legislation in favor of the textile community and pushing other important policies what can be done more?

Engr Md. Mozaffar Hossain, MP: I have a vision regarding BCS cadre. I’ll directly talk to the Prime Minister to make textile as a separate category.

There are almost 20000 textile engineers, and they’re pursuing other professions like merchandising and etc. so, this needs to be rectified as a policy when textile will become government service.

Another grave concern is there is not a single post for textile engineers in the textile ministry. Then how this ministry will run? Also in project development committees, there is no scope for the textile engineers.

Textile Today: There are a huge number of foreigners in the Bangladesh textile and garment industry. What could be done to mitigate this?

Engr Md. Mozaffar Hossain, MP: There is no exact data of how many foreign professionals are working in the textile and garment industry. Bangladesh Investment Development Authority (BIDA) is to control and give permission, but sadly they don’t have any real information in this regard.

Mohammad Mozaffar Hossain, MP with Textile Today
Figure 2: Engr. Mohammad Mozaffar Hossain, MP in conversation with the team Textile Today.

Textile Today: Please share us about your plans regarding different sectors within the textile industry.

Engr Md. Mozaffar Hossain, MP: Of course, my first priority is my area people who have elected me. Then comes the textile sector as I’m a textile engineer, I’ll try to work for their wellbeing. And engage in discussions with relevant ministry. Also, as a textile businessman, we know the overall situation of business is bleak. Factories are in dire situations as per profit margin, locally produced yarns remain unsold bringing down the spinning millers to their knees. Dying and weaving factories are not getting sufficient orders, low price is also a bottleneck issue for the factory owners. For the sake of running the business, millers are taking low price orders. Ultimately at the end of the month millers are operating at a loss. Snowballing pressure on banks, resulting in an increase in loan defaulters.

We must look upon this matter as a country why we are getting less price. Earlier, the product price was around $2, and now we get around $1.60-1.50. Where we have to deal with ever-increasing costs – dyes and chemical cost, workers’ wages have increased more than 50%, electricity bill, gas price – but the price per garment is on the decline perpetually.

Owners, associations, relevant stakeholders, the ministry of textile and jute everybody should sit and have come to a unified decision to mitigate this issue and decide policies.

Also, buyers play a critical role in setting up the product price. Nowadays the number of competitor countries have increased, and our export destinations are largely confined within the EU and the US. We couldn’t diversify our RMG export market. Whereas our competitors have come forward and diversified their market.

Also Read: Challenges of Bangladesh knit sector and the way out

To survive the textile and RMG industry we must broaden our horizon for our RMG products. And I think the Bangladesh embassies around the world can play a vital role. We can assign commercial attachés to these embassies where textile engineers will look after the matter for opening up the RMG export market.

I’ll try to bring these paramount matters to the knowledge of the prime minister and the foreign minister. Soon I’ll try my heart and soul to arrange a meeting with the prime minister and the textile community.

Textile Today: As you have mentioned about the perilous scenario of the spinning sector, where locally produced yarns remain unsold, why is this happening and how can we solve this?

Engr Md. Mozaffar Hossain, MP: Taking advantage of bonded ware facility yarns and fabrics are coming illegally mainly from India. Misusing the bond facility some unfaithful businessman among us is patronizing it.

BTMA has sent me a concerned letter as businessmen giving miss declaration importing yarns and fabrics at less prices, which is causing an alarming level of problems for local spinning mills. As bond facility ensures no tax or charges are included. Whereas local spinners import cotton, yarns with tax and etc.

Textile Today: Considering this survival issue in the spinning sector, we are welcoming more investments in the sector and parallelly we are letting the illegal import of yarns and fabrics duty-free. What is the way out?

Engr Md. Mozaffar Hossain, MP: We can’t completely stop the illegal import of yarns as it is an era of the free market. But we can make policy and impose a tax on imported yarns like India. And we must ensure taxation and impose a duty in all seaports, airports, and border posts.

Our export growth is on upward trend. But we millers can barely run mills and owners and workers alike under severe mountain load pressure.

As well as we must optimize our capacity. Still now we only produce 40% yarn and rest 60% is imported. So, we have the scope of developing this and produce yarns locally.

Read More: “There is still huge scope in woven and denim sector …”

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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