Cotton shortage hits Bangladesh's apparel sector

Bangladesh's garment industry, a cornerstone of the country's economy, is facing a perfect storm of challenges that threaten its global competitiveness. Recent floods have severely disrupted cotton supplies, compounding issues stemming from earlier political unrest and ongoing energy shortages.

Supply Chain Woes

The recent devastating floods have paralysed transportation networks, leaving factories unable to receive cotton shipments from Chattogram port. This disruption comes on the heels of political turmoil that had already caused significant production delays, according to Dhaka-based publication The Business Standard.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, reported a 50 percent drop in garment production, confirming to the publication: "The industry is under immense pressure to meet deadlines," he warns, highlighting the risk of further supply chain deterioration without swift resolution.

Economic Impact

As the world's third-largest clothing exporter after China and the European Union, Bangladesh's garment sector is crucial to its economy, accounting for over 80 percent of total export earnings. In 2023, the country exported 38.4 billion dollars worth of clothing. Industry leaders are concerned about potential long-term consequences.

Rubana Huq, a factory owner and former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told the Standard that complete recovery could take at least six months, with the risk of losing 10-15 percent of business to competitor countries.

Global Ripple Effects

The disruption in Bangladesh is already reshaping global cotton trade flows. Locally produced garments supply much of the world’s leading fast fashion and mid-tier brands, but countries such as Vietnam and Pakistan could see a surge in factory orders.