The recent unrest in Bangladesh, which has severely interrupted the supply chain over the past several weeks, is a cause for concern, according to the Clothing Manufacturers Association of India (CMAI).
Notwithstanding these obstacles, CMAI thinks Bangladesh’s garment industry might not be significantly impacted. Established connections and pre-existing business orders will act as a cushion against the current disruptions. On the other hand, if the unrest were to last for a few more months, Bangladesh’s industry would probably suffer long-term effects.
In case the disturbances persist, India is also expected to be affected. On the one hand, foreign buyers looking for alternate suppliers present an opportunity for Indian exporters. Additionally, Indian retailers and brands that now purchase goods from factories in Bangladesh can consider moving part of their requirements to Indian producers. However, this would negatively impact India’s raw material exports to the Bangladeshi apparel industry.
There have probably been some operational hiccups for a few franchised merchants and brands in Bangladesh within the last month or two. It’s anticipated that these delays would last for an additional two weeks before things get back to normal.
Rajesh Masand, President, Clothing Manufacturers Association of India (CMAI), expressed, “The recent events in Bangladesh have undoubtedly disrupted the supply chain, but the garment industry, which accounts for about 80 per cent of all Bangladesh’s exports, is too vital for any government to allow prolonged disruption. With the new leadership taking charge, we believe that stability and normalcy will return swiftly.”
