Uzbekistan offers land, seeks Bangladesh’s investment

[EastBengalPro]

Uzbekistan has asked BGMEA to set up garment industries in the Central Asian country.

A visiting Uzbek business delegation also assured the apex body of Bangladesh’s garment manufacturers of providing land free of cost in addition to power and gas connections.

The urge and assurances were made when the delegation had talks with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Saturday.

The visiting delegation, led by Uzbekistan’s First Deputy Minister of Economy Mubin Mirzaev, told BGMEA that Uzbekistan was interested to export fabrics and textile accessories to Bangladesh.

President Md Siddiqur Rahman of BGMEA told the Uzbek delegation that they would reap huge benefits if they invested in the garments industry in Bangladesh.

During the meeting, according to BSS, both sides decided to continue talks for exploring investment opportunities in their respective countries.

https://thefinancialexpress.com.bd/...-land-seeks-bangladeshs-investment-1517065743

 

[TopCat]

BD probably their biggest cotton importer.!!

 

[Samlee]

BD probably their biggest cotton importer.!!

Why Not Buy From Pakistan Much Cheaper B'Coz Less Transport Cost

 

[Bilal9]

BD probably their biggest cotton importer.!!

True. They also export crude oil, and various minreals such as Ferrous metals, Gold and Copper.

Main issue is that their industrial policy is not conducive to investments. Otherwise we'd already see investments by Pharma companies from Bangladesh etc.

Why Not Buy From Pakistan Much Cheaper B'Coz Less Transport Cost

We do bhaisaab.

However India is courting Bangladesh aggressively. Right now Bangladesh is the largest buyer of Indian cotton bales.

At the end of the 2014-2015 fiscal year, the net import value of cotton in Bangladesh was $4.5bn, 8.8% of the global imports, and the second highest globally. India was the second-highest exporter of cotton globally, valued at $7.5bn making up 13.8% of the global exports.

In the 2015-2016 fiscal year, Bangladesh is also the largest cotton importer in the world, with an approximately 18% market share.

 

[TopCat]

Why Not Buy From Pakistan Much Cheaper B'Coz Less Transport Cost

Cotton has different types sourced from different region for different products line. Buying Indian cotton are more economical than PK while they are of same quality and type.

 

[Samlee]

Cotton has different types sourced from different region for different products line. Buying Indian cotton are more economical than PK while they are of same quality and type.

You Have A Point But Competition Will Give You A Good Price And Also India Discourages Cotton Exports To Promote It's Own Value Added Industry

 

[chatterjee]

instead of importing why don't we start producing cotton

 

[UKBengali]

instead of importing why don't we start producing cotton

BD does not have the land.

 

[bluesky]

The visiting delegation, led by Uzbekistan’s First Deputy Minister of Economy Mubin Mirzaev, told BGMEA that Uzbekistan was interested to export fabrics and textile accessories to Bangladesh.

I always thought that Uzbekistan is a producer of huge quantity of cotton, and BD imports from there. I also thought both the countries use Bandar Abbas of Iran for the two-way trade. But, reading the account above makes me unsure if BD already imports or not.

I am not sure if the textile manufacturers in BD will be interested in investing in workshops in Uzbekistan. It is better BD imports cotton, fabrics and natural wool from Uzbekistan and exports finished products to it and other Republics there in the central Asia as well as to Russia.

 

[bête noire]

I always thought that Uzbekistan is a producer of huge quantity of cotton, and BD imports from there. I also thought both the countries use Bandar Abbas of Iran for the two-way trade. But, reading the account above makes me unsure if BD already imports or not.

I am not sure if the textile manufacturers in BD will be interested in investing in workshops in Uzbekistan. It is better BD imports cotton, fabrics and natural wool from Uzbekistan and exports finished products to it and other Republics there in the central Asia as well as to Russia.

Seems to me, investing in Uzbekistan would be beneficial for BD. Uzbekistan is a landlocked country that borders 5 other landlocked country. BD can't connect to those countries directly by port to port anyway. It's better to just set up factories there.

 

[Homo Sapiens]

Uzbekistan is a landlocked country that borders 5 other landlocked country.

Uzbekistan and Lichtenstein are the only the two double land-locked country in the world.No matter in which direction you go from Uzbekistan, you have to cross at least 2 other country to reach the open sea.

 

[Bilal9]

You Have A Point But Competition Will Give You A Good Price And Also India Discourages Cotton Exports To Promote It's Own Value Added Industry

Indians WANT 'To Promote (their) Own Value Added Industry' but CAN'T because majority of their garments are small sweatshops (under a hundred employees) compared to Bangladesh's operations (five to six hundred employees mostly). The conditions inside the Bangladeshi garments factories are better, our carding, combing, spinning and weaving equipment is much newer, of a better quality and more efficient etc. etc. I could go on and on.

I don't think Indian Govt. is keen on seeing garments industry or shoe industry as thrust sectors. They're doing fine with capital industries like automobiles, machinery and also IP industry like back-office operations. Plus India itself is a closely guarded and protected market by itself by dint of their vigorous/extreme anti-dumping duty/tarriff regimes. Why would they bother?

'WANT' and 'CAN' are two different things....

Uzbekistan is the only double land-locked country in the world.No matter in which direction you go from Uzbekistan, you have to cross at least 2 other country to reach the open sea.

I can see Bangladeshi farmers go over there and revolutionize export-oriented rice and vegetable production with irrigation schemes and their innate skills.

Like they did in gulf countries and even some in my backyard in Los Angeles.

So much open fallow land that could be utilized in Uzbekistan...that they can't use because of their lower population growth.

 

[Shorisrip]

BD does not have the land.

Well, during the Mughal era, Bengal Subah was responsible for much of its cotton production since the majority of the textile industry was based here, especially in and around Dhaka.

So, I'm pretty sure its still possible now.

This news article is from 2016

https://bdnews24.com/business/2016/04/27/bangladesh-eyes-increasing-local-cotton-production

Executive Director of the Cotton Development Board Md Farid Uddin said they had already selected Barind areas of Rajshahi, Naogaon and Chapai Nawabganj, where other crops cannot be produced, for cotton cultivation.

“We can produce 1 million bales of cotton in 200,000 hectares of land,” he said, adding that this can save 10 percent to 15 percent import costs.

 

[UKBengali]

Well, during the Mughal era, Bengal Subah was responsible for much of its cotton production since the majority of the textile industry was based here, especially in and around Dhaka.

So, I'm pretty sure its still possible now.

This news article is from 2016

https://bdnews24.com/business/2016/04/27/bangladesh-eyes-increasing-local-cotton-production

We are looking at 2000 square km of land to save 10-15% of import costs. This is more than 1% of total BD
land area. So to grow all the current cotton that BD garment industry requires would take around 15% of total BD land area. BD does not have this amount of land lying idle that is suitable for cotton cultivation.
Hence why I say that BD does not have the land to grow it's own cotton.

 

[Shorisrip]

We are looking at 2000 square km of land to save 10-15% of import costs. This is more than 1% of total BD
land area. So to grow all the current cotton that BD garment industry requires would take around 15% of total BD land area. BD does not have this amount of land lying idle that is suitable for cotton cultivation.
Hence why I say that BD does not have the land to grow it's own cotton.

Yes, cotton production is largely inefficient compared to other crops since it requires a large area for significant yield.

However, according to the article I posted, it states that the GoB is looking to implement cotton farming in hilly areas (where no current farming is taking place, and the region is not utlised), as well as coastal areas (where saline water prevents any other crop from growing). It also states that the government discourages cotton farming in areas where other crops are produced.