Bangladesh’s Chaos Slows Down Indian Cotton Exports: What’s Happening

Recently, cotton exports from India to Bangladesh have taken a hit. Why? Western garment and footwear companies have paused new orders to Bangladesh because of ongoing violence in the region. 

Even though Bangladesh’s factories are getting back on track, working extra hours to clear old orders, the uncertainty has made big brands hold off on sending new business their way.

This slowdown is causing ripple effects in India’s textile industry, which usually supplies raw materials and other essentials to Bangladeshi factories. While India is starting to receive new garment inquiries, the drop in cotton exports is a setback. 

M. Rafeeque Ahmed from Farida Group explained that despite the unrest, production is mostly happening in safer areas like Dhaka and Chittagong. 

He believes Western orders will bounce back eventually, thanks to Bangladesh’s favorable trade status as a least developed country.

However, Chandrima Chatterjee from the Confederation of Indian Textile Industry (CITI) pointed out that Western companies are already eyeing India as an alternative. But there are challenges—India needs to ramp up its production quality and quantity to match what Bangladesh offers. 

Although there are new garment inquiries coming in, the immediate impact has been tough on India’s textile sector because exports of raw materials to Bangladesh have slowed.

Additionally, concerns about human rights in Bangladesh are pushing Western companies to explore other options like India, Cambodia, Vietnam, and Indonesia. 

Despite the opportunities, an anonymous industry insider mentioned that India needs to diversify its product mix and ensure benefits reach the industry to stay competitive.

Bangladesh’s textile and garment industry is crucial, making up over 80% of the country’s exports and about 11% of its GDP. 

With the current challenges, both Bangladesh and India are navigating a tricky landscape to keep their industries thriving.

02/09/2024 05:09am