Cotton Spinning Units Worried Over Escalating Situation in Bangladesh
2024-08-07 10:47:08
Cotton Spinning Units Concerned About Bangladesh's Getting Worse
The Indian cotton spinning industry, already grappling with sluggish global demand, is now facing additional uncertainty due to the political turmoil in Bangladesh, the largest textile player after China.
Ripple Patel, Managing Director of Fiotex Cotspin Private Limited, expressed concerns over the recent developments, stating, “The industry is worried about the uncertainty surrounding the fate of the containers en route to Bangladesh and the pending orders. With this turmoil, the yarn industry will face tremendous heat as spinning units are already suffering losses due to muted global demand caused by ongoing geopolitical crises in Europe and the Middle East.”
Patel noted that payment delays resulting from the closure of banking and trading activities in Bangladesh would further strain the industry.
In FY24, India exported raw cotton and cotton yarn worth $2.4 billion, with 34.9% of its total cotton exports going to Bangladesh, which is twice the amount exported to China. India and Bangladesh conducted bilateral trade totaling $11.1 billion in this financial year, with imports at $1.8 billion and a trade surplus of $9.22 billion.*
Patel added that since textiles are one of Bangladesh's largest industries, the next government will likely protect its interests. However, the next two to three months could be particularly challenging for the Indian spinning industry. Orders destined for Bangladesh are now in limbo, and spinners will struggle to find new buyers.
Industry sources estimate that around 200 to 250 containers of cotton yarn are exported to Bangladesh each month. Industry players are in discussions with ministries, embassy officials, and authorities at Chittagong Port to closely monitor the situation and formulate strategies accordingly.
