One of the main export products of the garment sector in Bangladesh is denim (jeans) fabric and various types of garments made from it. Bangladesh is at the top as a supplier of single jeans products in the Western (US and EU) market. The entrepreneurs of the country also have a large amount of investment in business of this sector. However, the Russia-Ukraine war-induced recession and inflationary pressures in export markets are now a major concern for jeans producers in Bangladesh. In the meantime, their exports have decreased in the markets. If the situation does not change quickly, they fear that the crisis will increase furthermore in the coming days.
According to the Bangladesh Textile Mills Association (BTMA), as many as 40 indigenously owned factories are now involved in the production of denim fabrics. The factories have an annual production capacity of 80 million yards. The amount of investment of entrepreneurs in this sector is 16 thousand crores.
With this huge amount of investment, the situation of the export markets is now causing concern. Shams Mahmood, Managing Director of Shasha Denims told, “Inflation started increasing in the United States due to the impact of the incentive package given during the Covid period. After that, due to the effect of the Russia-Ukraine war, another round of upward trend is seen in inflation. Because of this, people are spending more money to meet basic needs. Compared to that, spending on clothing has decreased, which has impacted denim purchases.
Argon Denims Managing Director Anwar-ul Alam Chowdhury (Parvez) told that “Trousers are exported more among denim products. This time the sale of trousers has decreased a lot. Those working with denim have fewer purchase orders. I hear, the purchase order will be on the downward trend in the next few months as well.” Stating that the purchase orders are decreasing due to inflation, he said, ‘People are not buying much clothes now. Everywhere, however, it is decreasing. Globally, purchase orders fell by 17 percent. It consists more of trousers, then other products. For example, Walmart is the largest market in the United States. Their sales are down. If they are in stock, they will not place new purchase orders. Due to which this situation has been created.
According to the data, in 2022, Bangladesh’s income from denim export to the EU market was 155 million dollars. In 2021, its amount was 118 million dollars.
Syed Mohammad Tanveer, Managing Director of Pacific Denims said, “Our customers could not sell as per the target. Due to which our purchase orders have decreased. They are not buying the amount of products that they are supposed to buy this season. It will take time until January-February next year for the situation to normalize.
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