Category: YARNS
Country: India
Region: Asia
For years, Bhilwara has exported 50 per cent of its yarn and denim to Bangladesh, but now it is facing severe disruptions due to recent tensions in the country.
By Rajesh Asnani
Updated on: 11th August 2024, 8:24 am
2 min read
JAIPUR: The political mess in Bangladesh has created a massive crisis for the textile industry in Rajasthan’s Bhilwara district. For years, Bhilwara has exported 50 per cent of its yarn and denim to Bangladesh, but now it is facing severe disruptions due to recent tensions in the country. The total export value of these goods is estimated at around Rs 2,000 crore per year.
“Yarn and denim worth Rs 150-200 crore were exported to Bangladesh from Bhilwara every month. This has suddenly ceased. Bhilwara’s industry is in crisis because the demand for cloth has significantly reduced. Although Bangladeshi buyers have not cancelled their orders, local producers have stopped production due to the uncertainty surrounding payments,” RK Jain, general secretary of the Mewar Chamber of Commerce, the largest industrial organisation in Southern Rajasthan, said.
Bhilwara is home to 450 weaving, 18 processing, 20 spinning, and 10 denim industries, which employ over 65,000 people directly and about 1,50,000 workers indirectly. The current crisis threatens the livelihoods of these workers due to the halted production and sharply decreased demand.
Bangladesh’s textile industry, one of the largest in the world, exports textiles to various countries, including Europe and the US. Amid the crisis there, some entrepreneurs believe that if India can capture 10 per cent of Bangladesh’s textile orders, it could provide a substantial boost to its textile sector.
Experts suggest that if the crisis in Bangladesh persists, India may need to seek alternative markets for its exports. Observers believe that the short-term jolt to units in Bhilwara is severe but if India is able to encash this opportunity and make a significant breakthrough in markets that Bangladesh normally caters to, its textile sector could end up with long-term gains from this sudden crisis.
Courtesy: Newindianexpress.com
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