Exports of home textiles in Bangladesh is rebounding after nearly a year of decline, driven by factors such as the devaluation of the local currency, increased production capacity, and improved gas supplies. Exports grew by 7.85% year-on-year in the first half of the current fiscal year, reaching $410.81 million, with a notable 20.47% rise in December alone.
Home textiles, which include items like bed linen, curtains, and towels, had faced significant challenges in 2023 and early 2024 due to a sharp gas price hike and a resulting loss of work orders to competitors like Pakistan. The sudden gas price increase of 150.41% in February 2023 caused production costs to soar, forcing many exporters to refuse orders or reduce operations.
However, the devaluation of the Bangladeshi Taka against the US dollar, improved spinning capacity, and a partial restoration of gas supply have revitalized the sector. The easing of inflation in major markets like the US and Europe has further boosted export demand. Industry leaders, including Md. Shahidullah Chowdhury of ‘Noman Group’, which accounts for 70% of home textile exports from Bangladesh, reported about their increased shipments and production capacity. Additionally, political instability in Pakistan has helped Bangladesh regain some lost orders.
Bangladesh’s home textile exports had reached $1.62 billion in FY22 before declining sharply to $1.09 billion in FY23. The sector’s recovery is aided by investments in new spindles, with over 9 million installed in recent years and more planned. Despite these gains, inconsistent gas supply remains a challenge. Industry representatives, including BTMA President Showkat Aziz Russell, stress that adequate gas pressure is crucial for sustaining growth and encouraging further investment in the primary textile sector.
Comment here