The ongoing flash floods affecting 77 upazilas across 11 districts in Bangladesh have significantly disrupted the ready-made garment (RMG) sector, with exporters facing severe logistical challenges. The floods have completely cut off Chattogram port from the rest of the country, causing a backlog of containers and raising concerns about meeting export deadlines.
Exporters have voiced their worries over the disconnection of both rail and road links between Dhaka and Chattogram, which has severely impacted their business operations. Md Absar Hossain, Managing Director of Top Star Fashions Ltd and a Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in Chattogram, highlighted the urgent need for government intervention.
Figure: RMG supply chain has been disrupted by flood.
“Vehicles cannot move on the Dhaka-Chattogram highway, particularly in Feni and Cumilla, due to the floods. Products for export and import are piling up, leading to significant financial losses. We urgently need government support to clear the water from the highways and resume normal operations,” Absar stated.
The flood’s timing has exacerbated challenges for the RMG sector, which was already recovering from previous disruptions. Md Mohiuddin Rubel, Additional Managing Director of Denim Expert Limited and a BGMEA Director, expressed concerns about the escalating costs and damages due to the ongoing crisis. He emphasized the need for proactive measures to mitigate the impact of such natural disasters, including developing alternative routes and strengthening crisis management teams.
In response to the crisis, industry leaders have urged the government to explore alternative routes for transporting goods. Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), called for the use of the Pangaon river port and Mongla port as backup options to ensure timely shipments.
“Buyers are pressuring us to deliver products by air, as the floods have rendered roadways impassable. This will significantly impact our export earnings, but alternative shipment routes through Pangaon and Mongla ports could help mitigate the disruptions,” Hatem explained.
BGMEA President Khandoker Rafiqul Islam also noted the challenges posed by the flooding, particularly after a month-long disruption caused by the nationwide student movement. He expressed hope that transportation on the Dhaka-Chattogram highway would resume soon, allowing business operations to return to normal.
Despite these difficulties, the RMG sector remains focused on maintaining its global competitiveness. Industry leaders are hopeful that government support and strategic planning will help them navigate the current crisis and continue to meet export demands.
Although the global apparel market has seen a slight decline, Bangladesh remains the world’s second-largest clothing exporter, with the RMG sector accounting for 84.58% of the country’s total export earnings in the fiscal year 2022-23. The commitment of the industry to maintain its global competitiveness is evident, even in the face of natural calamities.
As the industry is going through this difficult period, the collective efforts of RMG exporters, industry associations, and government bodies will be crucial in ensuring that Bangladesh continues to thrive on the international stage.
