Unregulated jhut business fuels RMG unrest: Industry professionals

The garment waste (jhut) business has fuelled labour unrest in the ready-made garment sector as the informal business involves a lot of political and economic influence, according to industry experts, entrepreneurs, and development partners.

Proper regulatory policies could resolve the unrest, promote waste circularity, and create millions of jobs in recycling, while reducing Bangladesh's reliance on imports, they noted.

These observations were shared at a roundtable titled "Switch to Upstream Circularity: Path Towards Circularity in Bangladesh's RMG Industry," held today (12 November) at InterContinental Dhaka.

The event was organised under the SWITCH to Circular Economy Value Chains project, co-funded by the European Union and the Government of Finland, and led by UNIDO in collaboration with the Bangladesh Garment Manufacturers and Exporters Association, Global Fashion Agenda, BESTSELLER, Reverse Resources, Chatham House, Circle Economy, and the European Investment Bank.

At the roundtable, Bernd Spanier, deputy head of the EU Delegation to Bangladesh, said, "The industrial textile waste market in Bangladesh remains largely informal, which has a significant political-economic impact on the sector, as seen during recent labour unrest in the RMG sector in Ashulia and other parts of Dhaka." 

He said it is urgent to formalise the sector, noting that a clear regulatory framework would attract innovative recycling technologies, create millions of jobs, and reduce Bangladesh's dependence on imports.

"We believe the next five years will be crucial for Bangladesh's garment industry. Under the EU Strategy for Sustainable and Circular Textiles, the EU is introducing significant initiatives in this region.

"Garment-producing countries must shift from a linear to a circular production model to ensure that by 2030, textiles in the EU market are largely made from recycled fibres, free of harmful substances, and produced in an environmentally and socially responsible manner," Spanier added.

Referring to a recent GIZ study, Spanier noted that Bangladesh's lack of supportive policies has led to preferences shifting toward countries like Vietnam and Indonesia as destinations for recycling industries. 

"We aim to retain recycling industries in Bangladesh, but a post-industrial regulatory framework is essential, as current laws like the National Environmental Policy and Bangladesh Labour Act are not aligned with emerging EU and international standards for textile circularity," he also added.

Abdur Rahim Khan, additional secretary to the commerce ministry stated that jhut is no longer just an economic issue, but also a matter of law and order.

"We are aware of the unrest within the RMG sector, and some of my colleagues suggest that jhut contributes to this instability. It is time for better coordination between manufacturers, waste management companies, and brands, adding that transformation is likely if they work together, but real change may not happen without it."

Mark Draeck, chief technical adviser on Circular Economy in Global Value Chains from UNIDO, pointed out that circularity in the textile industry is complex, which has hindered straightforward progress. 

He said two pilot projects are being developed with brands and manufacturers to address challenges in technology, logistics, economics, and traceability. 

Visits to partners like Fakir Group and Recycle Raw showed the industry's readiness to move forward, but scaling these initiatives requires addressing systemic issues such as policy development, capacity building, financing, and investment, Draeck added. 

Speakers at the event included BGMEA support committee member Rezwan Selim, Desh Group Deputy Managing Director Vidiya Amrit Khan, and Global Fashion Agenda stakeholder consultant Shamiul Hoque.