Bangladesh on going crisis disturbs Guj’s textile, chemical exports

The ongoing crisis in Bangladesh has disturbed whole Gujarat’s textile and chemical industries, which have significant stakes in the South Asian market.

As the situation unfolds, these sectors are closely monitoring the developments and bracing for potential disruptions.

Initial estimates indicate that Gujarat’s textile industry has seen at least Rs 1,000 crore in transactions affected. Both industries are in a revival phase, and the Bangladesh crisis could severely impact them.

The textile industry, heavily reliant on exports to Bangladesh, has already taken a hit. 

Around 60% of Gujarat’s cotton yarn exports go to Bangladesh, and new shipments have been halted as a precaution.

About 100 containers, each weighing 20 tonnes, are stranded at Gujarat’s ports, awaiting clarity on when exports can resume.

Yarn prices declined by Rs 8 per kg in the past week, settling at Rs 242 per kg, reflecting the uncertainty surrounding the industry’s ability to maintain its export momentum to Bangladesh.

Some believe that prolonged uncertainty in Bangladesh could boost garment manufacturing in India, but industry leaders caution that the immediate impact on yarn exports is severe. 

Both industries are hoping for a swift resolution to the crisis and a return to normal trade relations.

Industry leaders are expected to explore contingency plans to minimize the impact on their businesses, including diversifying export markets and alternative supply chains.