Bangladesh’s textile manufacturing sector faced a significant decline in June 2024, with a 9.75% year-on-year drop in production. The country’s ready-made garment (RMG) sector also experienced a downturn, with a decrease of 8.55% compared to the same period last year. This decline reflects the challenges currently facing the textile and apparel industries, which are grappling with higher production costs, raw material price volatility, and a slowdown in global demand.
The textile sector, a key driver of Bangladesh’s economy, has been affected by both domestic and global economic factors. Higher costs of raw materials, such as cotton and yarn, and rising energy prices have placed pressure on manufacturers. In addition, a slowdown in key export markets, including the EU and the US, has impacted export orders for Bangladeshi garments, further exacerbating the challenges faced by the RMG sector.
Despite these setbacks, Bangladesh remains one of the largest textile producers and exporters globally. However, industry stakeholders are urging the government to address the challenges faced by manufacturers, such as improving infrastructure, reducing energy costs, and ensuring a stable supply of raw materials. With global textile demand showing signs of recovery, there is cautious optimism that the sector may stabilize in the latter half of 2024. However, for now, the sector faces continued pressure as it navigates these challenges.
