The country’s readymade garment (RMG) exporters are in a dire situation as the ongoing flash floods have devastated 77 upazilas in 11 districts. Containers are piling up at the Chittagong port, which is currently cut off from the rest of the country due to the floods.
Exporters have expressed concern over the severe business disruption caused by the closure of road and rail links between Dhaka and Chittagong for the past four days.
Speaking to local media, Md Absar Hossain, Managing Director of Top Star Fashions Ltd and a businessman from Chittagong, highlighted the major challenges they face.
“Due to floods, vehicles are unable to ply the Dhaka-Chattogram highway, especially in Feni and Cumilla. As a result, products for export and import are piling up at both ends, resulting in heavy financial losses,” said Absar, who is also the director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in Chattogram region.
He pointed out that more than 30,000 containers are currently stuck at Chittagong port. “Our production operations are severely disrupted. If the water is not removed from the highways, our business will suffer greatly. We urgently need government support in this regard,” he added.
Md Mohiuddin Rubel, Deputy Managing Director of Denim Expert Limited, noted, “The floods hit us just as we were trying to overcome the congestion at the ports caused by the anti-discrimination movement. Now we are facing another transport crisis due to the floods.”
He continued: “We do not know when the situation will return to normal. If not, our business costs and damages will escalate. Unfortunately, this is a natural disaster and it was completely unexpected.”
Mohiuddin, who is also the director of BGMEA, stressed the need to increase competitiveness in the international market. “We need to take proactive measures to mitigate the impact of such disasters. Developing alternative routes and ports and strengthening crisis management teams could help us overcome these challenges.”
According to the Export Promotion Bureau (EPB), the country’s total exports in the fiscal year 2022-23 stood at $55.56 billion, with garments accounting for 84.58 percent of all export earnings.
Mohiuddin also noted that there have been significant changes in the global apparel market, which recorded a decline of 9.62 percent, reducing the total market value to $520.62 billion from $576 billion in 2022.
Despite these challenges, Bangladesh remains the world’s second largest apparel exporter after China. However, Bangladesh’s share in the global apparel market has declined slightly, from 7.87 percent in 2022 to 7.38 percent in 2023, with export value declining by 15.32 percent to $38.40 billion.
