The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has predicted significant potential for the export of value-added garments made from recycled yarn.

During a pre-budget discussion held on Tuesday, the BGMEA estimated that around $5bn in revenue could be generated from apparel products made from scrap fabric or used cloth. BGMEA highlighted the export potential of recycled ready-made garments (RMG) products, noting that $500m worth of scrap fabrics are currently produced in the country.

Bangladesh could become a hub for recycled garments, with three factories already producing recycled yarn, and encouraged others to invest. BGMEA also sought policy support from the government and suggested that exempting local textile mills from the value-added tax on selling scraps would encourage investment in recycling.