Bangladesh’s home textile sector is witnessing a rebound following a two-year decline in exports, industry insiders have reported.
The drop in exports was primarily caused by an unusual surge in yarn prices, an increase in gas prices, and an inadequate gas supply to factories across the country. However, with the improvement in the situation, export earnings from the sector are now gradually rising, they added.
The recovery, which started in the last fiscal year, now continues faster.
In the fiscal year 2021-22, the home textile sector overtook jute, leather, shrimp, and agricultural products, becoming the second-largest export sector. During that year, the sector earned $1.62 billion, a 43.28 percent increase compared to the previous fiscal year.
However, the following two years saw a decline in export earnings to $1.09 billion in fiscal year 2022-23 and $850 million in fiscal year 2023-24. The decline was attributed to the steep rise in gas prices, the inadequate supply of gas, and abnormal increases in yarn prices.
“During these two years, many buyers shifted to Pakistan due to the rise in production costs,” said M Shahadat Hossain, former chairman of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA).
“But, as the situation is improving, buyers are returning and placing new orders,” he added.
According to data from the Export Promotion Bureau (EPB), export earnings from the sector reached $871.57 million in the last fiscal year (2024-25), reflecting a 2.42 percent increase compared to the previous year.
Exports also grew in the two-month period of July-August, with earnings rising to $139 million, up 12.68 percent compared to the same period last fiscal year. The earnings for this period were $123.38 million last year.
Noman Group, a major player in the sector, had previously exported textile goods worth around $18 to $20 million per month. However, its exports dropped to $6 to $7 million per month as of June this year.
“But exports began to rise again in July, reaching nearly $12 million,” said M Shahidullah, executive director of Noman Group.
Industry insiders noted that the government’s abrupt increase in gas prices by 150.41 percent in February 2023, which raised the cost per unit from Tk 11.98 to Tk 30, resulted in an abnormal increase in production costs for major home textile exporters. This led many to hesitate in accepting new work orders, causing many orders to shift to Pakistan.
“Due to the gas crisis in previous years, exports were disrupted for a long time. The gas situation has improved somewhat over the past few months, and exports are gradually increasing,” said Shahnawaz Ahmed, managing director of Shamsuddin Towels Ltd.
The home textile sector includes products such as bed sheets, pillow covers, curtains, cushions, and various types of terry towels. These products are primarily exported to 131 countries, with major markets including the USA, Germany, France, the UK, and Canada.
Although there are over 150 companies in the home textile sector, only 50-60 are currently engaged in exports.
Monsur Ahmed, former CEO of the Bangladesh Textile Mills Association, said that due to reduced gas pressure, textile mills were unable to operate at full capacity and could not produce enough products to compete in the market.
“But the situation is gradually improving, especially in costing and pricing terms,” he added.
