Exports drop 18% in March as Eid closures Mideast conflict hit shipments

Highlights:

• $3.45b in March 2026, down from $4.25b in 2025
• RMG sector drops nearly 20%
• Leather, home textiles, jute, agri, engineering exports also fall
• Plastic product exports show marginal growth
• Factory closures during Eid weigh on exports
• Mideast conflict, US tariffs worsen decline

Despite hopes of a positive turnaround in exports following the national election and the formation of a new elected government, Bangladesh's export earnings took a significant hit in March, the second full month under the new administration.

According to data released by the Export Promotion Bureau (EPB), total exports in March fell by 18.07% compared to the same month of the previous fiscal year. Data shows Bangladesh earned $3.45 billion from exports in March 2026, compared to $4.25 billion the same month in 2025.

This marks the eighth consecutive month of decline, with March recording the steepest drop in that period. Exporters said the decline was due to two main factors: extended factory closures during Eid, which halted production, and global order disruptions caused by the Middle East conflict. 

The ready-made garment (RMG) sector, the country's primary export earner contributing over 80% of total export revenue, saw shipments drop nearly 20% year-on-year.

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said factories were closed for 7-10 days in March. 

"The Middle East conflict has also made buyers more cautious, contributing to the decline. Global buyers were waiting for Bangladesh's national election; after it, orders were expected to pick up, but the conflict changed the scenario," he told TBS.

Industry insiders said the current negative trend is unprecedented for Bangladesh's garment sector. The downturn began with retaliatory tariffs imposed by the Trump administration, which raised import costs for US and EU buyers and reduced their orders. 

Although global inflation was expected to ease, the Middle East conflict further complicated the situation. Closure of the Hormuz Strait pushed up global fuel prices, creating supply bottlenecks, insiders added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told TBS: "Rising fuel costs have reduced demand and disrupted local production, negatively affecting exports." 

He urged the government to prioritise fuel supply for the industry.

Tipu Sultan, president of the Bangladesh Finished Leather, Leather Goods, and Footwear Exporters Association (BFLLFEA), said that normally, March marks the start of orders for the next winter season. 

"But this year, the conflict, rising fuel costs, and uncertainty have slowed buyers considerably. Little improvement is expected in the coming weeks. Even if the conflict ends within two weeks, uncertainty will remain. Damaged infrastructure in the Middle East makes it unlikely fuel prices will fall below $100 per barrel for the next year," he added.

Mohammad Hasan Arif, vice-chairman of EPB, echoed these concerns but expressed hope for improvement over the next three months of the fiscal year.

EPB data shows that, beyond RMG, exports of most major products – including leather and leather goods, home textiles, jute and jute goods, agricultural products, and engineering products – also fell in March, while plastic product exports increased. 

From July to March, total exports reached $35.39 billion, down nearly 5% from the same period last fiscal year.