Bangladesh plans to create a new sponsoring authority to oversee the country’s textile mills, making it mandatory for them to be registered with it. All existing textile units, according to the proposed law, will require getting registered with the authorities for obtaining support from the government and other trade bodies including financial institutions. If a textile factory fails to get enlistment from the sponsoring authority, it will not be allowed to work with the enlisted one under sub-contracting arrangement.

Believing textile mills have been set up in an unplanned and scattered way, the country feels now it is time to bring those under a system since safety and environmental issues have now emerged as a major obstacle for the country in satisfying overseas buyers. Mill owners say they are not against enactment of the law but not all textile mills have the ability to set up effluent treatment plants and are capable of ensuring all types of compliance issues in their factories. They say the government should make a plan to provide the necessary technical and financial support to small and medium capital-based factories.

According to the draft act, if factory owners fail to enlist their factories with the sponsoring authority, then the factory owner might be awarded up to three months’ imprisonment or a fine.