Bangladesh unrest spins trouble for garments industry in Bengal

Kolkata: The fresh spate of violence in Bangladesh has put the textile and garments industry in Bengal in a fix. The total worth of cotton yarn, raw cotton, and fabric exported from India to Bangladesh is estimated to be over Rs 22,000 crore and a sizeable chunk of these used to be sent to the neighbouring country through Bengal. Besides, Bengal's garment export to Bangladesh, estimated to be over Rs 500 crore, has also been affected.
Former regional chairman of FIEO (Federation of Indian Export Organisation), Sushil Iatwari, who has been exporting cotton to Bangladesh since 1972, pointed out that it is the biggest buyer of Indian cotton, fabric, and cotton yarn. The total export of cotton yarn is worth $1.2 billion, while the export of cotton and fabric is $1.5 billion. According to him, cotton and fabric from North Indian mills used to go through land routes via Bengal as there are six land ports in the state. However, Bangladesh has already banned the import of cotton yarn through land routes. In Kolkata's Metiabruz, manufacturers are facing the heat of the turmoil with the cancellation of export orders placed by agents. Sajjan Ali Mollah, a manufacturer at Metiabruz garments hub, who is also the president of the West Bengal Garment Association, pointed out that the manufacturers are now turning to the domestic market in other states in the absence of buyers and orders from the neighbouring country.Dilawar Mondal, another garments manufacturer at Metiabruz, said, "Ever since the turmoil started, our business with them slumped to just 20% through agents." Another manufacturer, Alamgir Fakir, secretary of the Bangla Readymade Garments Manufacturers and Traders Welfare Association, said, "From last year, our bulk orders that used to pour from Bangladesh dropped, and with the outbreak of unrest again, it is no business for us."Sanjay Jain, chairman of the Indian Chamber of Commerce's national textiles committee, agreed that the sudden turn of events again with anti-India marches is slowing down bilateral trade. "We hope that the situation may improve after Feb elections. Bengal and North East that send various items, especially garments to Bangladesh, are big losers because of the turmoil, which is also hitting the MSMEs," said Jain. Some manufacturers believe that the Bangladesh unrest will be a boon for India's import-export business. Rajesh Goel, CEO of Neon Creations, a garments company, said, "Bangladesh will lose the confidence of buyers because of the fresh turmoil, and this is likely to shift the business to India." Echoing him, Ramesh Agarwal, director of Rupa & Co, stated that exports from Bengal and other parts of the country might grow as buyers from the Bangladesh market must be looking for alternatives.

Get a chance to win ₹5000 Amazon Voucher by taking part in India's Biggest Habit Index! Take the survey here