Currency volatility, gas crisis hit Bangladesh's home textile export

Media reports claimed this adding after experiencing robust growth, with home textile exports surpassing $1 billion in the fiscal 2020-21, the momentum continued into the following year, reaching $1.62 billion.

However, the trend took a downturn in the last fiscal as the industry grappled with gas crisis and currency devaluation.

Consequently, exports went down by 32.47 per cent to $1.09 billion in 2022-23, with the decline persisting into the first seven months of the current financial year, dropping by 34.37 per cent to $454.74 million between July and January of 2023-24.

The dwindling demand in export markets has led to a significant reduction in the number of home textile mills, with only eight currently operational, down from 38 in previous years.

Further exacerbating the sector’s woes is the instability in the foreign exchange market, with the Taka depreciating by approximately 30 per cent against US dollar over the past two years, thereby impacting the competitiveness of exports.

Despite being predominantly seasonal, the sector previously benefitted from long-term orders placed by the global brands and retailers.

However, the current crisis has disrupted this positive aspect.

The challenges facing the home textile sector underscore the urgent need for government intervention to address gas crisis, stabilise currency, and support the industry through targeted measures.

Fibre2Fashion News Desk (DR)