If the disturbances were to continue for a couple of months more, there is certainly likely to cause a long term impact on Bangladesh Industry.
The Clothing Manufacturers Association of India (CMAI) expresses concern over the recent instability in Bangladesh, which has significantly disrupted the supply chain over the past few weeks.
Despite these challenges, CMAI believes that there may not be a significant impact on Bangladesh’s Garment Industry. Long-standing relationships and pre-existing business orders will serve as a buffer against the current disturbances.
However, if the disturbances were to continue for a couple of months more, there is certainly likely to cause a long term impact on Bangladesh Industry.
India too is likely to be impacted if the disturbances continue. On one hand, Indian Exporters can see an opportunity of International Buyers seeking alternative sources of supply. Also, Indian Brands and Retailers currently buying from Bangladesh factories may look for shifting some of their needs to Indian manufacturers. On the other hand, India’s exports of raw materials to the Bangladesh Apparel Industry would be hit.
A few retailers and brands with franchise stores in Bangladesh would have experienced disruptions in their operations over the past month or two. These disruptions are expected to continue for another two weeks before normalcy returns.
Rajesh Masand, President, Clothing Manufacturers Association of India (CMAI), expressed, “The recent events in Bangladesh have undoubtedly disrupted the supply chain, but the garment industry, which accounts for about 80 per cent of all Bangladesh’s exports, is too vital for any government to allow prolonged disruption. With the new leadership taking charge, we believe that stability and normalcy will return swiftly.”
“With the army exerting significant influence, it is expected that law and order will soon return to normal. The new nominated Prime Minister being a person of great intellect and maturity would ensure the swift restoration of normal operations,†He further added.