March’s sharp drop suggests Bangladesh’s garment industry is facing not just softer demand, but a broader squeeze from weaker orders, tariff uncertainty and domestic operating constraints.
Bangladesh’s ready-made garment exports fell sharply in March 2026, extending a multi-month downturn and underscoring the pressure on the world’s second-largest apparel exporter. According to export data cited from Bangladesh’s Export Promotion Bureau (EPB), March RMG shipments dropped 19.35% year on year to $2.78 billion, down from $3.45 billion in March 2025. Total merchandise exports for the month also fell, with broader export earnings declining by roughly 18% year on year.
Both knit and woven moved lower
The contraction was broad-based across Bangladesh’s two main apparel segments. Woven garment exports at $1.36 billion in March, down 17.32%, while knitwear shipments fell to about $1.42 billion, a decline of 21.23%. For July–March FY2025-26, cumulative RMG exports stood at about $28.57 billion, down 5.51% from the same period a year earlier.
Why mills and exporters are under strain
Industry voices in Bangladesh have linked the slowdown to weaker consumer demand in key Western markets, prolonged trade uncertainty and buyer caution. Recent reporting also points to fewer working days and domestic energy and production constraints adding to the pressure on shipments.
What to watch next
The immediate question is whether March proves cyclical or signals a more persistent reset in sourcing volumes. Bangladesh has recently secured a new U.S. trade arrangement with a 19% tariff and zero tariffs for certain apparel made with U.S. materials, which could partly reshape sourcing flows. But for now, the export data show a sector still under clear volume and margin pressure.
