Bangladesh garment industry faces cotton shortage amid flood delays

Last year, Bangladesh was ranked as the third-largest clothing exporter in the world, following China and the European Union, exporting $38.4 billion worth of clothes in 2023.

Garment factories in Bangladesh, one of the world’s largest clothing production centres, are facing challenges in completing orders on time due to flooding that has disrupted their cotton supplies, further worsening a backlog already impacted by recent political turmoil.

As a major global cotton importer, Bangladesh relies heavily on cotton for its large textile and garment industry. However, severe flooding has significantly hindered the transportation of cotton to factories from Chittagong port over the past week, according to industry officials and analysts. This disruption, combined with the recent unrest and protests that resulted in factory closures earlier in the month, has led to a 50 per cent decline in garment production, according to Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association. He mentioned that the industry is under considerable pressure to meet deadlines and cautioned that without a quick resolution, the supply chain could deteriorate further.

Last year, Bangladesh was ranked as the third-largest clothing exporter in the world, following China and the European Union, exporting $38.4 billion worth of clothes in 2023, according to the World Trade Organisation. Rubana Huq, who runs a clothing factory in Dhaka, is assessing the impact of lost production. She noted that for a medium-sized company like hers, which produces 50,000 shirts daily at a price of $5 each, the production loss amounted to $250,000. Huq, a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), mentioned that while some garment plants are slowly resuming production, she estimated that full recovery would take at least six months. She also warned that Bangladeshi manufacturers could potentially lose 10-15 per cent of their business to competitors in other countries.

The ready-made garments industry in Bangladesh, which supplies many of the world’s leading fashion brands, contributes more than 80 per cent of the country’s total export earnings.

News source: Reuters