Cotton spinning units worried over escalating situations in Bangladesh

NEW DELHI : Already grappling with  sluggish global demand, the Indian cotton spinning industry is apprehensive about the fallout of the ongoing political turmoil in Bangladesh,  the largest textile player after China.

Talking on the recent developments, Ripple Patel, Managing Director, Fiotex Cotspin Private Limited, said, “The industry is worried about the uncertainty around the fate of the containers on the way to Bangladesh and the orders in the pipeline. After this development, the yarn industry will face tremendous heat as the spinning units are already making losses due to muted global demand because of the ongoing geo-political crisis in Europe and Middle East.”

He said, “The payment delays because of the closure of banking and trading activities in Bangladesh will also have a negative toll on the industry.

It may be mentioned that in FY24, India exported raw cotton and cotton yarn worth $ 2.4 billion. India exported 34.9% of its total cotton export to Bangladesh, twice the export to China. Furthermore, India and Bangladesh did a bilateral trade of $11.1 billion in this financial year (with an import of $ 1.8 billion and a trade surplus of $ 9.22 billion).

Patel further said that since  textiles is one of the biggest industries for Bangladesh, the next government too will go all out to protect its interests. “ But the next two or three months may be troublesome for the Indian spinning industry. As of now, the orders that were supposed to be dispatched to Bangladesh will remain in limbo and the spinners will have a hard time finding new buyers.

As per sources in the industry, around 200 to 250 containers of cotton yarn are exported to Bangladesh in one month. The industry players are in talks with the ministries, embassy officials and the authorities at Chittagong Port to assess the situation closely and formulate their strategies accordingly, they said.

Source : FE