Bangladesh Unrest Disrupts Bengal Garment Exports, Hitting MSMEs and Trade Routes
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The recent spate of unrest in Bangladesh has significantly disrupted the textile and garments trade with India’s West Bengal, hitting export orders from key hubs and threatening growth for micro, small and medium enterprises (MSMEs).
Exports Through Land Ports Take a Hit
India exports over Rs. 22,000 crore worth of cotton yarn, raw cotton and fabric to Bangladesh — much of it transported through six key land ports in West Bengal. Additionally, Bengal’s garment exports to Bangladesh are valued at more than Rs. 500 crore.
However, Bangladesh’s ban on land route imports for cotton yarn — coupled with ongoing political turmoil — has led to sharp declines in export traffic, leaving manufacturers in the region grappling with cancelled orders and collapsed trade volumes.
Manufacturers Report Drop in Business
At Kolkata’s Metiabruz garments hub, local producers say business has slipped to just 20% of normal levels, struggling to find buyers as Bangladesh remains a key market for textiles and garment products. Many exporters now say they are pivoting efforts towards domestic markets in other Indian states to stay afloat.
Industry Leaders Express Concern
Veteran exporters and trade leaders have voiced concern about the broader impact on regional trade:
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Sushil Iatwari, a seasoned exporter of cotton products, highlighted Bangladesh as one of India’s largest buyers of cotton yarn and fabric.
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Sanjay Jain, chairman of the Indian Chamber of Commerce’s textiles committee, warned that the slowdown in bilateral trade is particularly affecting MSMEs in Bengal and the Northeast.
Mixed Industry Outlook
While the unrest has jeopardised existing export flows, some industry players believe Indian companies could benefit in the long term. They argue that buyers may increasingly look to Indian manufacturers as an alternative sourcing destination if instability in Bangladesh persists.
Others hope for a return to normalcy after Bangladesh’s scheduled February elections, expecting trade and business activity to revive once political tensions ease.
10:28 AM, Dec 29
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