Bangladesh garment factories struggle as floods disrupt cotton supplies
Garment factories in Bangladesh, a major player in global clothing production, are facing severe delays as flooding disrupts cotton supplies, compounding issues caused by recent political unrest.
As one of the world’s leading cotton importers, Bangladesh’s textile and garment sector has been hit hard by the recent floods, which have hindered transportation from Chittagong port. Trucks and trains have been unable to deliver essential supplies to factories, exacerbating a backlog already worsened by political turmoil that led to factory closures earlier this month.
According to Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, garment production has plummeted by 50% due to these disruptions. “The industry is now under immense pressure to meet deadlines,” Hatem said. “Without a swift resolution, the supply chain could deteriorate even further.”
Bangladesh was the third-largest exporter of clothing globally last year, following China and the European Union, with exports totaling $38.4 billion in 2023, according to the World Trade Organization. However, the floods have significantly impacted production, with Rubana Huq, a prominent factory owner and former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), reporting substantial losses. “For a moderate-sized company like ours, we have seen a $250,000 production loss,” Huq said, predicting that a full recovery could take at least six months. She warned that the industry might lose 10%-15% of business to other countries.
The readymade garments sector, which supplies many leading global fashion brands, accounts for over 80% of Bangladesh’s export earnings. Shahidullah Azim, a director of the BGMEA, noted that buyers are taking a cautious approach and may delay new orders. “The longer this uncertainty persists, the more challenging it becomes for us to maintain the momentum we have built,” he told Reuters.
The Bangladesh Meteorological Department has indicated that flooding may continue if monsoon rains persist, with water levels receding very slowly. Analysts predict that some cotton shipments might be redirected to countries like India, Pakistan, and Vietnam. “We are already seeing some cotton being redirected for prompt delivery to Pakistan and Vietnam,” said Louis Barbera, partner and analyst at VLM Commodities.
The shift in orders could benefit southern India, where Atul Ganatra, president of the Cotton Association of India, noted that capacity could be adjusted to accommodate the demand. Meanwhile, the Bangladeshi garment industry continues to face additional challenges, including ongoing power shortages that have further hampered operations, according to Fazlee Shamim Ehsan, vice president of the country’s knitwear manufacturers and exporters association.
As the situation unfolds, the future of Bangladesh’s garment industry remains uncertain, with both immediate and long-term impacts on its role in global fashion supply chains.
