Gazipur has quietly transformed from an industrial manufacturing center into Bangladesh’s largest hub for garment waste trading. Discarded jhut (fabric scraps) and waste cotton from the ready-made garment (RMG) industry are now powering a burgeoning market worth hundreds of crores of taka. This once-overlooked byproduct is creating tens of thousands of jobs, fueling domestic secondary industries, and seamlessly integrating into global circular supply chains.
With the global fashion industry facing intense pressure to reduce its environmental footprint, Bangladesh—the world’s second-largest apparel producer—is uniquely positioned to turn its massive waste output into a highly lucrative, sustainable resource.
The Scale of the Waste Economy
Historically treated as a nuisance or cheap landfill fodder, pre-consumer textile waste is now a highly sought-after commodity. Industry analysts, including LightCastle Partners and a recent Switch to Circular Economy Value Chains report, estimate that Bangladesh’s RMG sector produces between 440,000 and 577,000 metric tons of textile waste annually.
In Gazipur alone, industry sources estimate that 10,000 to 12,000 tonnes of garment waste—comprising cotton cuttings, yarn waste, and jhut—are generated every single day from over a thousand garment factories located in the city and adjacent industrial belts.
The Trading Hubs Anchoring the System
A dense, bustling network of wholesale markets has taken root to process this massive daily yield. Major hubs have developed around Tongi Millgate, Majhukhan, Purba Chandra (Kaliakoir), Ambagh, and Mauna (Sreepur), complemented by dozens of smaller, local clusters known as jhut pallis.
Hundreds of traders operate in these markets daily. According to Mohammad Abu Saker, President of the Tongi Millgate Jhute and Cotton Market Traders Association, the Tongi Millgate market alone handles 2,000 to 3,000 tonnes of garment waste daily. This scrap acts as the lifeblood for spinning mills and small manufacturing industries across the country.
Feeding Domestic Industries & Empowering an Informal Workforce
What remains in Bangladesh is largely “down-cycled.” Recycled cotton and yarn sourced from Gazipur’s trading hubs are widely utilized by factories in Dhaka, Gazipur, Narayanganj, and Savar to manufacture everyday items such as mattresses, car seats, pillows, cushions, mops, and carpet backings.
Furthermore, lower-cost home textile items like bed sheets, towels, and lungis are produced in Narsingdi, Kishoreganj, and Mymensingh. Meanwhile, Chattogram and Noakhali host export-oriented wiping rag units that serve shipyards and heavy industries.
Behind this domestic supply chain is a massive, largely informal workforce. Recent studies by UNICEF highlight that tens of thousands of workers—approximately 70% of whom are women—work 10 to 12 hours a day sorting and bundling jhut based on quality and color, often forming the invisible backbone of this multi-crore industry.
The Global Export Frontier and Regulatory Pressures
Beyond domestic down-cycling, a growing share of Bangladesh’s garment waste is exported to India, China, Turkey, Hong Kong, the United States, and the European Union. Export Promotion Bureau (EPB) data showed that Bangladesh earned Tk 411.12 million from jhut exports in the 2022–23 fiscal year, a figure that continues on an upward trajectory.
However, the real catalyst for future growth is shifting global regulations. The European Union is implementing strict circular economy directives, including Extended Producer Responsibility (EPR) and the Digital Product Passport (DPP), which require brands to use more recycled content and trace a garment’s lifecycle. As the global textile recycling market is projected to reach $9.4 billion by 2027, international buyers are increasingly looking to Bangladesh to close the loop.
Untapped Potential and Strategic Roadblocks
Despite the massive volume of trade, the sector’s potential remains largely untapped. Experts point out that expanding local, high-value recycling (like chemical recycling and fiber-to-fiber regeneration) could save Bangladesh an estimated $700 million annually in raw cotton imports. Market operators in Gazipur project that with formalization, improved logistics, and modern recycling tech, export earnings from jhut could skyrocket to Tk 4–5 billion annually.
To reach this potential, the sector must overcome severe structural roadblocks:
-
Safety Hazards: Unplanned storage and highly flammable waste depots frequently lead to devastating fires, endangering workers and local communities.
-
Opaque Supply Chains: The value chain relies heavily on unregistered workshops, offering limited transparency to global brands seeking traceable recycled materials.
-
Governance Issues: Traders frequently report financial losses due to unethical interference, extortion, and informal control by influential local syndicates.
The Path Forward
As noted by policy experts and researchers at institutions like Chatham House, integrating garment waste trading into Bangladesh’s broader industrial policy is no longer optional. Through dedicated industrial zoning, stringent fire safety enforcement, investments in fiber-to-fiber recycling technologies, and protections for the informal workforce, Gazipur’s jhut ecosystem can evolve.
If properly managed and formalized, this waste economy will not only relieve environmental pressure on landfills but will become a strategic pillar of Bangladesh’s RMG value chain—driving job creation, sustainability, and export diversification for decades to come.
