Indian exporters on a watch Bangladesh increases MMF sourcing from the country

Indian exporters are on a watch as Bangladesh's RMG makers are increasingly sourcing of man-made fiber yarns from the country. This shift is due to competitive pricing, reduced lead times thanks to new land ports, and growing global demand for MMF apparel. The US' anti-China stance may also be a contributing factor, with import volumes from India projected to double within five years.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA), emphasizes, sourcing from India will boost Bangladesh's MMF industry and lessen dependence on China. New land ports at Benapole, Bhomra, and Sonamasjid, opened in December, significantly cut down delivery times. A recent expo in Dhaka saw 60 Gujarati MMF producers explore export opportunities, and a BGMEA delegation is currently in India to strengthen sourcing ties.

Leading Bangladeshi exporters like Sparrow Group are already increasing MMF raw material imports from India, citing competitive prices, quality, and faster lead times. While Bangladesh's apparel exports are 72 per cent cotton-based versus 24 per cent MMF, the global trend shows rising MMF apparel demand. Experts from Research and Policy Integration for Development (RAPID) and the BGMEA anticipate continued MMF growth and emphasize the need for increased local investment to reduce import dependency and capitalize on this evolving market. Indian exporters are also keenly eyeing this growing demand.