BANGLADESH’S limited capacity to deal with the enormous waste generated by its textile sector may prove unsustainable as the global fashion industry faces pressure to reduce its environmental footprint.
As more countries introduce rules requiring greater recycled content in clothes, analysts and business owners said Bangladesh must expand recycling to meet demand from a global textile recycling market projected to be worth $9.4 billion (£7bn) by 2027.
The world’s second-largest apparel producer recycles only a small percentage of its textile waste, with the rest shipped abroad or left to pollute the landscape in Bangladesh.
The European Union last month published its first road map towards meeting the standards under its Ecodesign for Sustainable Products Regulation, which includes provisions for reducing the environmental harm caused by the textile industry.
This will require Bangladesh and other fashion suppliers to boost recycling while improving working conditions in what is largely an informal sector, said Patrick Schröder, a senior research fellow at the British thinktank Chatham House.
“As the call for recycling grows and fast fashion goes out of fashion in the coming years, millions of jobs will be impacted, and Bangladesh needs to think ahead to step up its capacity to keep up with the changes,” he said.
Bangladesh’s fashion industry is estimated to produce up to 577,000 metric tonnes of textile waste from the factories each year. Most of it is shipped abroad, and the rest is left to clog bodies of water, pollute the soil, enter landfills or be incinerated, which produces toxic gases, according to a report by Switch to Circular Economy Value Chains, a project supported by the EU and the Finnish government.
What is processed has evolved into a vast, informal business in Bangladesh. Thousands of informal workshops sort and bundle the waste, known as jhut, and what remains in Bangladesh is down-cycled to make low-value products like mattresses, pillows and cushions.
When clothing scraps are swept up from factory floors, politicians and other influential people control who gets it and at what price, said Asadun Noor, project coordinator at the United Nations Industrial Development Organisation in Dhaka.
“This is a very opaque process, offering limited visibility of the waste value chain to clothing brands and suppliers,” he said.
The scraps go to hundreds of mostly unregistered workshops near Dhaka, where they are cleaned and sorted into batches based on quality, colour and other considerations.
Tens of thousands of workers, 70 per cent of them women, sort the remnants for 10 to 12 hours a day, a study by the UN’s children agency Unicef said last year.
Workers said they toil for low wages without facilities like drinking water, paid sick leave or protection from harassment.
A small share of the waste sorted in workshops like Begum’s is sent to about two dozen recycling factories in Bangladesh. A large portion is exported to countries such as India or Finland for recycling into new fibre where this is a larger base of recycling facilities as well as advanced technology like chemical recycling that produces strong, fresh fibres.
Some fibres made from exported scraps are then sent back to Bangladesh to be made into clothes. More local recycling could save Bangladesh about $700 million (£522.2m) a year in imports, the Switch to Circular Economy Value Chains report estimated.
Other major textile hubs are ramping up recycling capacity. For example, India recycles or reuses about 4.7 million tonnes, or about 60 per cent, of its textile waste, according to a report by Fashion for Good, a coalition of businesses and non-profits.
Some Bangladeshi companies are aiming to compete and provide proper labour standards. In 2017, Entrepreneur Abdur Razzaque set up Recycle Raw, which has now become one of the largest waste-processing businesses in Bangladesh.
A few local recycling factories are also investing in adding more production lines, but large-scale investment in technology like chemical recycling, with support from fashion brands and development-finance organisations is needed, said Abdullah Rafi, CEO of recycler Broadway Regenerated Fiber, based in the city of Ashulia, near Dhaka.
However, investors expect a regular supply of waste feed stock and that means the current opaque system of handling waste would have to go, he said. (The Thomson Reuters Foundation)
Britain’s food retailers have said that higher employer taxes and regulatory costs as well as increased staff wages are adding to inflationary pressure
British grocery inflation nudged down to stand at five per cent over the four weeks to 10 August, data from market researcher Worldpanel by Numerator showed on Tuesday (19), providing a little relief for consumers.
The figure, the most up-to-date snapshot of UK food inflation, compared with 5.2 per cent in last month’s report.
“We’ve seen a marginal drop in grocery price inflation this month, but we’re still well past the point at which price rises really start to bite and consumers are continuing to adapt their behaviour to make ends meet,” Fraser McKevitt, head of retail and consumer insight at Worldpanel, said.
The researcher said prices were rising fastest in markets such as chocolate, fresh meat and coffee and falling fastest in champagne and sparkling wine, dog food and sugar confectionery.
Britain’s food retailers have said that higher employer taxes and regulatory costs as well as increased staff wages are adding to inflationary pressure from higher prices for commodities.
Trade body the British Retail Consortium, which represents Britain’s biggest retailers, predicts that food inflation will hit 6 per cent by the end of the year, putting more pressure on household budgets in the run-up to Christmas.
The Bank of England has forecast it will hit 5.5 per cent before Christmas and then fall back as global wholesale factors fade.
Official UK inflation data for July will be published on Wednesday. (Reuters)
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Garavi Gujarat
Publications Ltd and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.
In his Independence Day address, Modi said the goods and services tax (GST) would be reformed and rates lowered by Diwali, which falls in October. (Photo: Getty Images)
INDIA’s government will reduce consumption tax rates by October, a top official said on Friday, hours after prime minister Narendra Modi announced reforms to support the economy amid trade tensions with the United States.
The federal government is planning a two-rate structure of 5 per cent and 18 per cent, removing the existing 12 per cent and 28 per cent slabs, the official told Reuters, requesting anonymity as the plans are still under discussion.
According to the official, 99 per cent of items currently taxed at 12 per cent, including butter, fruit juices, and dry fruits, will be shifted to 5 per cent. The move could affect companies such as Nestle, Hindustan Unilever, and Procter & Gamble.
The announcement follows rising trade tensions between New Delhi and Washington over US tariffs on Indian goods. Modi on Friday urged people to promote domestic products, with some of his supporters calling for a boycott of American goods.
In his Independence Day address, Modi said the goods and services tax (GST) would be reformed and rates lowered by Diwali, which falls in October.
"This Diwali, I am going to make it a double Diwali for you. Over the past eight years, we have undertaken a major reform in goods and services tax. We are bringing next-generation GST reforms that will reduce the tax burden across the country," Modi said.
The final decision will be taken by the GST Council, chaired by the finance minister and comprising state finance ministers, the official said. The council is expected to meet by October.
Brokerage Citi estimates that about 20 per cent of items, including packaged food, beverages, apparel and hotel accommodation, are in the 12 per cent slab. These account for 5-10 per cent of consumption and 5-6 per cent of GST revenue.
If most of these are moved to the 5 per cent slab and some to 18 per cent, the government could see a revenue loss of about 500 billion rupees, or 0.15 per cent of GDP, Citi said. This could take the total policy stimulus for households in the 2025-26 financial year to 0.6-0.7 per cent of GDP, it added.
(With inputs from agencies)
Keep ReadingShow less
CEO of Morrisons Rami Baitiéh (centre) takes on the Heera Foods Gol Gappay challenge
Morrisons chief executive Rami Baitiéh took part in a lively “Gol Gappay Challenge” at the supermarket’s Bradford headquarters on Tuesday, as part of celebrations for South Asian Heritage Month.
The event, hosted in the company’s central atrium, was led by Bradford-based Heera Foods, which served up its popular Gol Gappay – crispy puris filled with spiced chickpeas and tangy water – to staff and visitors.
The highlight was a 60-second eating contest where colleagues competed to finish as many Gol Gappay as possible before the clock ran down. To cheers from the crowd, Baitiéh joined in and managed four in a minute.
“It was fantastic to see the CEO of one of the UK’s biggest supermarkets join in with such enthusiasm,” said Noor Ali, senior commercial manager at Heera Foods. “Gol Gappay, also known as pani puri, are all about fun, flavour and bringing people together, and Rami certainly embraced that spirit.”
The open day formed part of Morrisons’ program of events showcasing South Asian food and culture. For Heera Foods, one of Bradford’s longest-standing South Asian brands, it was an opportunity to highlight a snack loved across the subcontinent.
Heera Foods, part of P&B Foods Ltd, has been based in Bradford since the 1960s and produces a wide range of South Asian staples and ready-to-eat products from its UK facility.
Keep ReadingShow less
When Mounjaro was launched in Britain, Lilly set a list price 'significantly below' that in its other three European markets to avoid delays in NHS availability. (Photo: Reuters)
ELI LILLY said on Thursday it will increase the UK list price of its weight-loss drug Mounjaro by up to 170 per cent. The price change comes as the White House urges drugmakers to raise prices in Europe to enable price cuts in the United States.
The new price, which also applies to Lilly's type 2 diabetes medicine sold under the same name, will take effect in September. A month's supply of the highest dose will rise from £122 to £330, the company said.
The increase will apply to those paying for Mounjaro privately but will not affect patients receiving it through the National Health Service (NHS), which has a separate pricing agreement, a Lilly spokesperson said.
When Mounjaro was launched in Britain, Lilly set a list price “significantly below” that in its other three European markets to avoid delays in NHS availability. “We are now aligning the list price more consistently,” the company said.
The change comes as drugmakers adjust to policy shifts in the United States, their largest market, where president Donald Trump is seeking lower domestic drug prices while encouraging increases overseas.
Last week, Lilly CEO David Ricks told investors that price parity between the US and Europe was desirable over time, but said European governments “are not signing up to pay more for drugs.”
The US pays more for prescription drugs than any other country, often nearly three times more than other developed nations. Trump says he wants to narrow this gap to prevent Americans from being “ripped off.”
Reuters reported last week that the Trump administration has been in talks with drugmakers about ways to equalise prices across markets.
A list price is the amount set by a drug manufacturer before any discounts or rebates.
Lilly said it is working with private UK healthcare providers, including online pharmacies, which can set their own prices, to maintain access to the medicines.
Lilly launched Mounjaro in the UK in February 2023, while rival Novo Nordisk’s Wegovy became available in the country in September 2023.
(With inputs from Reuters)
Keep ReadingShow less
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
UK's economy grew more than expected in the second quarter, though at a slower pace than the first three months of 2025, as US tariffs and a higher UK business tax weighed on activity, official data showed on Thursday.
Gross domestic product rose 0.3 per cent in April-June, the Office for National Statistics (ONS) said, above analyst forecasts of 0.1 per cent growth. This followed a 0.7 per cent rise in the first quarter.
“Today’s economic figures are positive with a strong start to the year and continued growth in the second quarter,” said finance minister Rachel Reeves.
“But there is more to do to deliver an economy that works for working people,” she added, after a challenging first year in power for the Labour government.
The ONS said growth in construction and services in the second quarter helped offset a fall in production.
“Growth was led by services, with computer programming, health and vehicle leasing growing,” said Liz McKeown, ONS director of economic statistics.
Data released on Wednesday showed UK unemployment at a four-year high of 4.7 per cent in the second quarter.
The slowdown comes after the government raised the UK business tax from April, when US President Donald Trump’s 10 per cent baseline tariff on most goods also took effect.
Citing risks from US tariffs, the Bank of England last week cut its key interest rate by a quarter point to 4 per cent.
“The weak global economy will remain a drag on UK GDP growth for a while yet,” said Ruth Gregory, deputy chief UK economist at Capital Economics.
“The full drag on business investment from April’s tax rises has yet to be felt. And the ongoing speculation about further tax rises in the (UK) autumn budget will probably keep consumers in a cautious mood,” she added.