RMG exports from Saidpur drop 50%
Local economy and employment under threat as businesses face setbacks due to India’s land port ban
Highlights
- Saidpur garment exports fall 50% after India's ban
- Costs triple and shipments take 25 days
- Traders urge urgent government action
Saidpur, the commercial hub of Nilphamari district, is reeling after exports of ready-made garments, mainly made from jhut (scrap fabric), faced a sudden and severe setback.
Exports dropped by about 50% following India's ban on imports of seven categories of goods, including garments, through land ports, creating a major crisis for the local economy and employment, according to the Exportable Small Garments Owners Association (ESGOA) in Saidpur.
Local traders report that exporting by sea has become highly challenging, with transport costs tripling and shipments taking 20 to 25 days.
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Leaders of the ESGOA urged high-level intervention from both governments to avert a deepening economic and employment crisis.
Crisis for the age-old industry
The jhut garment industry in Saidpur, which began during the Pakistan era, is facing an unprecedented slowdown. Local entrepreneurs source jhut fabric from factories in Dhaka and Chattogram, keeping production running year-round, according to industry insiders.
Nearly every household in the upazila has turned into a small garment workshop, producing trousers, shorts, jackets, jeans, and t-shirts with 2 to 45 machines. The industry sustains at least 500 families, supplying both domestic and international markets. India, Nepal, and Bhutan have traditionally been key export destinations.
However, following the Indian government's recent import restrictions through land ports, production has almost come to a standstill, threatening the livelihoods of hundreds of families.
Export route shut, costs triple
India's Ministry of Commerce on 17 May, issued an order stating that garments and processed foods can only be imported through the Kolkata seaport.
Traders said that previously sent through Benapole, Sonamasjid, and Sonahat land ports, goods must now go by sea, causing costs to triple and shipments to take much longer. Where it once cost Tk20,000 to send a certain volume of goods, the expense has now risen to Tk60,000. The transportation cost hike forced many traders to operate with subsidies simply to maintain their market presence.
Entrepreneurs face setbacks
Invent Trade International Ltd, one of the few garment exporters in Saidpur, has been thriving for over 32 years. Humayun Kabir, owner of the company, said, "We usually export trousers, jackets, and shorts made from jute fabric. We also have a factory in Pabna, where mainly T-shirts are produced. Altogether, my company exports at least Tk5 crore worth of garments annually to India, Nepal, and Bhutan."
He added, "Our exports have now dropped by at least 50%. The costs and time have increased so much that it has become difficult to sustain the business."
Mohammad Sujan Ali, manager of HR Garments, complained, "Earlier, products would reach India in just two days; now it takes almost a month. Who will we speak to about these losses?"
Another exporter, Farhad Hossain, said, "Many factories are laying off workers. The lively work environment has become stagnant just because of the export ban through the land port."
According to six major traders here who regularly sent garments to India, approximately Tk50 crore worth of garments were exported annually.
Impact on local economy
According to the National Board of Revenue, India is one of Bangladesh's largest importers of garments, with nearly $70 million worth exported annually – 93% of which used to travel via land routes. With that route now closed, the regional economy and employment are taking a serious hit.
Arshad Amir Pappu, vice president of the Saidpur Small Garments Owners' Association, warned, "Hundreds of small factories are under threat. Both governments need to take this matter seriously; otherwise, the wheels of Saidpur's economy will stop turning."
