In the fiscal year 2022-23, Bangladesh has defied the challenges posed by the Russia-Ukraine war and subsequent inflation, achieving a remarkable 10 per cent increase in its exports of readymade garments (RMG).
This is as per reports, which claimed during the first six months of the current year, export growth stood at 5.64 per cent, even as the import of cotton, a crucial raw material for garment production, dropped by 29 per cent.
Between January and June of this year, Bangladesh imported a total of 632,000 tonnes of cotton, valued at Taka 170 billion, as compared to 891,000 tonnes in the same period of the previous year.
It’s worth noting that cotton imports had surged to 1,800,000 tonnes, valued at Taka 470 billion, by the end of the preceding year.
Some entrepreneurs in the textile sector have pointed out a significant decline in foreign purchase orders during the latter half of the previous year, which had a detrimental impact on the textile industry. Furthermore, a shortage in gas supply severely affected production activities, causing delays in product deliveries.
Conversely, the previous year had witnessed substantial cotton imports. Consequently, many spinning mills were cautious about importing large quantities of cotton in the face of gas shortages, a dollar crisis, and reduced purchase orders.
However, there is now concern among entrepreneurs that a sudden increase in purchase orders for RMG products may lead to a shortage of yarn. Traders are grappling with difficulties in opening letters of credit (LC) for cotton imports, and the subsequent import process takes up to two months to complete.
