India’s cotton exports to Bangladesh hit with drop in Western orders.

India’s cotton exports to Bangladesh has taken a hit as Western garment orders to Dhaka decline, affecting Indian textile industry, which supplies essential raw materials to Bangladesh. Industry leaders note that while garment enquiries are rising in India, the decline in cotton exports to Bangladesh is a significant concern.

M Rafeeque Ahmed, Chairman of Chennai-based Farida Group, highlighted that despite recent disruptions, production in Dhaka and Chittagong is stabilizing. However, the flow of Western orders remains slow, though they are expected to resume due to Bangladesh's favorable duty status as a least developed country (LDC).

Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry (CITI), confirmed that while India is being considered as an alternative by Western companies, the immediate impact on the Indian textile sector has been negative. She emphasized that India's Production Linked Incentive (PLI) and PM Mitra schemes are crucial steps toward enhancing domestic capabilities.

The garment sector, already strained by the Russia-Ukraine war and adverse weather, faces further challenges as international concerns over human rights in Bangladesh grow, pushing Western buyers to explore other markets like Cambodia, Vietnam, and Indonesia.