MP garment-makers eye opportunity in B’desh crisis – ET Retail


Representative image

Indore: The political unrest and uncertainty in Bangladesh has spurred a surge in orders for garment manufacturers in Madhya Pradesh, a hub for large and medium-sized garment units.

“From a business standpoint, there is a ray of hope. We have observed an uptick in orders for apparel, and many domestic retailers who were sourcing readymade garments from Bangladesh are beginning to procure more from India. Domestic supply from within the country to prominent clothing brands, retailers, and exports to the United States and Europe have witnessed an upswing,” said Shreyaskar Chaudhary, MD, Pratibha Syntex, an apparel manufacturer and exporter of yarn. Numerous clothing brands and domestic retailers have shifted to sourcing apparel from manufacturers in India, propelling local players to enhance capacity utilisation in factories.

Akhilesh Rathi, joint president of Federation of MP Chamber of Commerce and Industries, remarked, “There will be a significant impact on the supply chain into India as well as to the western world. The impact on supply of raw materials like cotton polyester, viscose, yarn and fabrics to Bangladesh will be temporary, but this disturbance may result in many manufacturing units shifting to India in the long run.” Garment manufacturers believe India is well-positioned to emerge as an alternative in the garment sector. However, there is concern over delayed payments and consignments stranded in Bangladesh. Severe congestion at Chittagong Port, Bangladesh’s primary seaport, and Benapole, the country’s largest land port, have left containers of cotton yarn and fabric stranded for long periods, say exporters from MP.

Cotton yarn and fabrics, and oil meal are the primary commodities exported from MP to Bangladesh, which emerged as the second-largest importer of goods from MP in 2023 and the first quarter of 2024. MP also exports electric machinery and plastic film sheets to Bangladesh.

According to official data, goods valued at Rs 1,237 crore were exported to Bangladesh during April-June 2024. In the 2022-23 fiscal, exports to Bangladesh from MP amounted to Rs 5,325 crore.

“Eight of my containers laden with cotton yarn are currently stranded at Chittagong Port, and there is ambiguity regarding payment. There are no fresh orders and banks are clueless about payments. I managed to escape from my office in Dhaka and return to India a week ago. The situation is dire, and industries will require time to get back on their feet,” said Pranab Bhattacharya, an exporter of cotton yarn to Bangladesh.

Chaudhary said he has a consignment of four containers of yarn in transit to Bangladesh. It has become a challenge due to violent disruptions, he said. Rahul Mehta, chief mentor of Clothing Manufacturers Association Of India (CMAI), said, “This disruption has an adverse impact on export of cotton yarn from India, although the garment sector will reap substantial benefits as international buyers will turn towards India as an alternative market. Indian manufacturers must now contemplate enhancing capacities to meet the burgeoning demand.” Bangladesh’s economy is heavily reliant on the textile industry, which accounts for approximately 80% of its exports.

  • Published On Aug 10, 2024 at 12:08 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRetail App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App




Source link

Leave a Reply

Your email address will not be published. Required fields are marked *