Textile and Chemical Exports to Bangladesh Resume After Brief Halt
2024-08-21 11:36:40
After a brief pause, Bangladesh resumes exporting chemicals and textiles.
Ahmedabad: With the political situation in Bangladesh stabilizing, exports of textiles and chemicals from Gujarat are beginning to return to normal, industry experts report. Fresh orders for cotton yarns and dye chemicals have started flowing in from Bangladesh, a key export market for Gujarat’s textile and chemical industries.
According to industry sources, while payment issues have improved over the past week, exporters remain cautious in their business dealings.
For India’s spinning sector, Bangladesh is the largest export market, accounting for 428 million kg of cotton yarn in 2023-24, which made up 35% of India’s total yarn exports.
In the dyes sector, Gujarat exports over 3,500 tonnes of reactive dyes to Bangladesh each month. Given that garment manufacturing is a critical component of Bangladesh’s economy, the country cannot afford to lose these imports.
Bharat Chhajer, former chairman of the Powerloom Development and Export Promotion Council (PDEXCIL), noted, “The textile industry in Bangladesh has resumed operations, and the situation is becoming stable. Exports had been halted due to the violence in Bangladesh, with cotton yarn containers held up at various Indian ports.”
Exporters are closely monitoring the situation in Bangladesh and taking necessary precautions to ensure safe business transactions.
Jayesh Patel, senior vice-president of the Spinners’ Association Gujarat (SAG), commented, “Exports to Bangladesh have resumed, and inquiries are picking up, but the overall costs are still not aligning with manufacturing costs.”
The textile and chemical industries in Gujarat had been facing challenges since the Covid-19 pandemic. Although both sectors have seen a revival in the current financial year, the political unrest in Bangladesh had raised concerns.
Manish Kiri, managing director of a chemical company, explained, “Gujarat’s dyestuff manufacturers supply 3,500 to 4,000 tonnes of dyes, primarily reactive dyes, to Bangladesh every month, representing nearly 15% of the state’s dye exports.”
Approximately 150 businesses in Ahmedabad are involved in exporting reactive dyes to Bangladesh.
“We’ve observed that the business environment is stabilizing sooner than anticipated. Payment situations have improved, and new inquiries and orders are beginning to come in,” Kiri added.
