The nation’s exporters of ready-made garments (RMG) are in terrible condition as a result of the continuing flash floods that have destroyed 77 upazilas in 11 districts. At the Chittagong port, which is currently totally sealed off from the rest of the country owing to flooding, containers have been piled up.
Concerns have been raised by exporters regarding the serious disruption to business that the last four days’ closure of the road and rail connections between Dhaka and Chittagong has created.
Speaking to the local media, Md Absar Hossain, managing director of Top Star Fashions Ltd and a Chittagong-based businessman, highlighted the severe challenges they are facing.
“Vehicles cannot move on the Dhaka-Chattogram highway, particularly in Feni and Cumilla, due to the floods. As a result, products for export and import are piling up at both ends, leading to significant financial losses,” said Absar, who is also a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in the Chattogram region.
He noted that more than 30,000 containers are currently stranded at the Chittagong port. “Our production process is being severely disrupted. If the water is not cleared from the highways, our business will suffer greatly. We urgently need government support in this regard,” he added.
Md Mohiuddin Rubel, additional managing director of Denim Expert Limited, remarked, “The floods struck just as we were trying to recover from the traffic jams at the ports caused by the anti-discrimination movement. Now, we face another transportation crisis due to the flooding.”
He continued, “We do not know when the situation will normalise. If it doesn’t, our business costs and damages will escalate. Unfortunately, this is a natural disaster, and it was completely unexpected.”
Mohiuddin, who is also a director of BGMEA, stressed the need to boost competitiveness in the international market. “We must take proactive measures to mitigate the impact of such disasters. Developing alternative routes and ports, as well as strengthening crisis management teams, could help us overcome these challenges.”
According to the Export Promotion Bureau (EPB), the country’s overall exports totalled US $ 55.56 billion in fiscal 2022-23, with garments accounting for 84.58 per cent of all export receipts.
Mohiuddin also noted that the global apparel market has seen significant changes, with a 9.62 per cent decline, bringing the total market value down to US $ 520.62 billion from US $ 576 billion in 2022.
Despite these challenges, Bangladesh remains the world’s second-largest clothing exporter after China. However, Bangladesh’s share in the global apparel market has slightly decreased from 7.87 per cent in 2022 to 7.38 per cent in 2023, with the export value dropping by 15.32 per cent to US $ 38.40 billion.
