Among the new textile items, denim fabrics and sweater are gradually becoming the flagship products for the local exporters. Industry insiders said during the last four years, production of denim has increased from 28 million metres per year to 200 million metres in 2006. The sub-sector is now producing denim enough to meet the entire demand of the export oriented readymade garments units for the same, said the Bangladesh Textile Mills Association (BTMA).

The knitwear exporters of the country has ventured in a new area. Some of them are now producing Cashmere sweater, a very high value product, adding new dimension in knitwear exports.

Bangladesh emerged as the number one supplier of denim clothes to the European market, commanding 27 per cent share during the 1st half of 2006. The BTMA claims that availability of locally produced denim fabrics and enhanced ability to offer the same at most competitive prices have helped Bangladesh gain greater market share. Restrictions on certain apparels of some Asian countries in the EU market have also benefited the Bangladesh denim sector.

In terms of earnings, Bangladesh, however, ranked third in the EU market because of the exporters’ concentration in low cost dresses. During the January-June 2006 period Bangladeshi apparels manufacturers shipped about 24 million pairs of denim jeans in men’s & boys category to Europe. In women’s & girls’ denim category, Bangladesh exporters saw the volume increased by more than 91 per cent to about 17 million pairs during January-June 2006.

Local capacity for production of denim fabrics has increased significantly in recent times, helping the apparel manufacturers to cater to the demand from European buyers. The country’s sweater exporters got an encouraging response from buyers in the EU in recent times by exporting high-value woollen products made of Cashmere.

Bangladeshi exporters have doubled their share over the last one year in EU market. Export growths in high-value Cashmere items indicate a very encouraging diversity of the sweater sub-sector. The exports of Cashmere items from Bangladesh grew by 108 per cent during Jan-Aug 2006. Bangladesh is now the 3rd largest Cashmere Sweater supplier to the EU dominating slightly over 12 per cent market share.

Bangladeshi manufacturers mainly depend on wool of Mongolian origin. Since Cashmere sweaters are made of expensive raw materials and need sophistication in production process, local exporters are cautious to take the risk. As the emerging trend in the global sweater market is apparels made of wool & natural fibres, exporters feel that they have to tap the opportunity.