Raw Material Imports for RMG Drop by 17.3%

Bangladesh is projected to remain the world’s top cotton importer in MY2025-26, with imports reaching 8.5 million bales, ahead of Vietnam’s 8 million, according to the USDA. This surge aligns with a 10.86% year-on-year rise in Bangladesh’s RMG exports to $30.25 billion in the first 10 months of FY25.

Bangladesh's readymade garment (RMG) exports reached $32.64 billion in the first 10 months (July-April) of FY2024-25 — a 10% increase from $29.67 billion in the same period last year, despite political instability. The European Union remained the top destination

Bangladesh's imports from Pakistan rose nearly 10% in 2024, reaching 19.14 lakh tonnes, driven by direct shipping and relaxed customs rules. The launch of the Karachi–Chattogram direct route in November 2024 cut delivery time from 30 to 11 days, slashing costs by a third. The National Board of Revenue (NBR) also eased customs inspections

Fourteen Bangladeshi garment exporters remain unpaid for apparel shipments worth $7.6 million to Russia over the past year due to international transaction complications triggered by US sanctions. Attempts to reroute payments through China have failed, said Mohammad Hatem, President of BKMEA, who urged the government to resolve the issue by either adjusting the dues against Rooppur Nuclear Plant payments or introducing a barter system.

Bangladesh’s garment exports to the European Union—its largest market accounting for 79 percent of total RMG shipments—are facing intensified competition as regional rivals like China, Vietnam, Cambodia, and Pakistan shift focus from the US to the EU amid a new US tariff regime. This diversion is expected to drive down prices and margins in the EU market

A recent study by STITCH and BRAC University reveals that nearly 32% of readymade garment (RMG) factories in Bangladesh have not implemented the revised minimum wage of Tk 12,500–12,800, mandated since December 2023. All non-compliant factories are located outside Export Processing Zones (EPZs), while EPZ-based and larger factories showed full compliance.