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New Initiatives in Bangladesh Textile Industry: A Few
Thoughts
Dubai 2011March 15-16, 2011
Dubai 2011: Open to the World
Quamrul Ahsan, Ph.D.Saquib Ahsan and Sadia Ferdous
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2007
INDIAN BAN
PAKISTAN FLOOD
INDIAN EXPRT LIMIT
Dubai 2011: Open to the World
COMMODITY MRKT COLLAPSE
Source: ICAC
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Dubai 2011: Open to the World
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Dubai 2011: Open to the World
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Dubai 2011: Open to the World
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Dubai 2011: Open to the World
143 – Companies43 - India15 - Pakistan
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Dubai 2011: Open to the World
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Estimated Consumption: 830,000 MTActual Import: 770,000 MT
Shortfall: 60,000MT40,000 MT more than 2009
Attributes:Higher Cotton Price, Supply Chain Disruption and
Decline in
Growth in Spindle Capacity
Dubai 2011: Open to the World
HOW TO CHARACTERSIZE 2010?
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Dubai 2011: Open to the World
>22%
< 2%7.6m
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7.2 M7.4 M
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Three Reasons:Energy, Energy and Energy
Dubai 2011: Open to the World
DECLINE IN CAPACITY BUILDING
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Dubai 2011: Open to the World
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Dubai 2011: Open to the World
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The Forward and Backward Linkage Industries are not in
Tandem
Backward Linkage Industry Couldn’t keep up with Garments Export
Growths
Backward Linkage Growth is Limited by “Energy” and “Sourcing of
Cotton”
It’s a Double-edged Sword Problem
Dubai 2011: Open to the World
WHAT IS THAT MEAN?
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LESSONS WE LEARN
SEASON 2009-10-11:• Gave us a Wake-Up call to Prepare for the
Future• Realized that “Sourcing Cotton” is more Critical than
the “Price”• Reminded us How Vulnerable our Textile Industry
to
Foreign Sources.
SEASON 2007-08:• Did More Harm to our Industry• Put Some of the
Largest Merchants Out of Business• Textile Industry Lost a Few
Reliable Partners Who
Played Important Role in Supply Chain
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• The Textile Industry is Vulnerable Because We Don’t Produce
any Cotton
• “Sourcing Cotton” is the Major Threat not the “Price”
• The Nation is Vulnerable Because We Depend on 76% of Our
Earnings on One Industry
• This is more of an Issue of “National Security”than the
“Cotton Security”
HOW VULNERABLE WE ARE?
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• EXPORT POTENTIALS ARE ENORMOUS
• BACKWARD LINKAGE INDUSTRY (SPINNING) NEEDS TO
SUPPORT EXPORT GROWTH
• OUR NATIONAL SECURITY IS AT STAKE
• WE ARE IN “DON’T KNOW MODE”
• NO STRATEGIC PLAN AND DIRECTION
• NO INSTITUTIONS OR THINK TANK THAT CAN GIVE
PROPER DIRECTION TO POLICY MAKERS
WHERE ARE WE NOW?
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FORM A NATIONAL TEXTILE COUNCIL• Provide direction to policy
makers and industry
leaders
GO ORIGIN• Invest in Ginning, Farming and Trading
PARTICIPATE IN INTERNATIONAL FORUMS• Membership with ICAC, ICA
and others
WERE WE WOULD LIKE TO SEE US IN FIVE YEARS?
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THANKS FOR YOUR ATTENTION!!
Dubai 2011: Open to the World
