Bangladeshi garment import ban triggers supply crunch for global retailers in India

Leading international clothing retailers in India, including
Marks & Spencer, H&M, Zudio and Lifestyle, are facing supply shortages
amid a prolonged restriction on imports of readymade garments from Bangladesh
through land ports, The Economic Times reported today.
The
Directorate General of Foreign Trade (DGFT) of India had issued a notification
on May 17 banning garment imports from Bangladesh via land routes. Imports are
now allowed only through the Kolkata and Nhava Sheva seaports, causing
significant disruptions in the supply chain.
The move has led to delays of two to three weeks in merchandise
sourcing, especially in lower-price categories. As a result, several Indian
retailers such as Lifestyle, Reliance and Aditya Birla have started shifting
part of their production domestically.
"While
we have shifted some of our sourcing within the country, there are a few
categories that we import from Bangladesh, which have been delayed due to the
decision," said Devarajan Iyer, chief executive officer of Lifestyle
International.
Smaller retailers and grey market operators, who rely heavily on low-priced
products and faster deliveries, are bearing the brunt of the import ban.
"The
cost of importing garments from Bangladesh could rise by 3 to 5 percent due to
higher transportation costs through seaports. However, the impact will not be
immediate as many retailers had secured contracts months in advance," said
Rahul Mehta, chief mentor of the Clothing Manufacturers Association of India.
Imports
from Bangladesh have already dropped 25 percent year-on-year, according to
Sanjay Jain, managing director of textile and apparel company TT Industries.
Between
January and June this year, India's imports of garments from Bangladesh stood
at $254.44 million, up 3.5 percent from $245.84 million in the same period a
year earlier, The Economic Times reported citing data from the Confederation of
Indian Textile Industry and the International Trade Centre.
















