Once highly promising home textile sector in Bangladesh is facing challenges in the export market due to persistent issues such as the ongoing gas crisis, fluctuating exchange rates, and rising production costs, which have compelled many factories to shut down.
According to data from the Export Promotion Bureau (EPB), home textile exports surged to over $1 billion in the fiscal year 2020-21, marking a remarkable 49.17 % year-on-year growth. This momentum continued into the following year, with shipments of home textiles, including bed sheets, terry towels, and curtains, reaching $1.62 billion, a 43.28 % increase.
However, the trend reversed in the last fiscal year due to the gas crisis caused by lower local production and reduced imports of liquefied natural gas, leading to a decline in foreign currency reserves. Additionally, the significant depreciation of the taka against the US dollar further exacerbated the situation.
As a result, exports fell by 32.47 % to $1.09 billion in 2022-23, and the downward trajectory persisted in the first seven months of the current financial year, with shipments declining by 34.37 % to $454.74 million between July ’23 and January ’24 of 2023-24.
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