Yarn mills in Bhilwara, Rajasthan, a key exporter of yarn and denim to Bangladesh, have come to a grinding halt due to the ongoing tensions in the country. The district annually exports goods worth approximately Rs 2,000 crore to Bangladesh, but this trade has now been severely impacted due to the crisis.
The monthly export of yarn and denim from Bhilwara to Bangladesh amounts toRs 150-200 crore.With this trade suddenly coming to a halt, demand for cloth produced in Bhilwara has dropped significantly. Although Bangladeshi buyers haven't cancelled their orders, local producers have ceased production due to uncertainties regarding payments, says RK Jain, General Secretary, Mewar Chamber of Commerce, the largest industrial organisation in Southern Rajasthan.
Home to 450 weaving units, 18 processing plants, 20 spinning mills, and 10 denim industries, Bhilwara collectively employs over 65,000 people directly and around 150,000 workers indirectly. The current crisis poses a serious threat to the livelihoods of these workers, as production has stopped and demand has plummeted.
One of the largest globally, Bangladesh's textile industry exports textiles to various countries, including Europe and the US. Amid the crisis, some entrepreneurs believe that if India can capture even 10 percent of Bangladesh's textile orders, it could provide a significant boost to its own textile sector.
Experts warn that if the crisis in Bangladesh continues, India may need to explore alternative markets for its exports. While the immediate impact on Bhilwara's textile units is severe, there is potential for long-term gains if India can seize this opportunity and make inroads into the markets typically served by Bangladesh.
