Khulna s Textile Sector Faces Uncertainty After Export Order Cancellations
Khulna, Bangladesh – The textile and garment industry in Khulna, a key industrial hub in southwestern Bangladesh, is grappling with a wave of export order cancellations from international buyers, raising concerns among local factory owners and workers. The cancellations, attributed to shifting global demand and economic slowdown in major markets, have left thousands of jobs at risk.
According to the Khulna Garment Manufacturers and Exporters Association (KGMEA), at least 15 factories in the region have reported canceled orders worth approximately $30 million since the start of the year. Most of these orders were destined for European and North American retailers, which have tightened inventory management due to rising inflation and reduced consumer spending.
“We are facing a serious crisis. Many factories have already reduced production shifts, and some are considering temporary closures if the situation does not improve,” said Md. Rafiqul Islam, secretary of the KGMEA. “The workers are the most affected, as they rely on daily wages to support their families.”
The Khulna region, home to over 200 garment factories, employs more than 500,000 workers, predominantly women from rural areas. The sector contributes significantly to the local economy, with exports of ready-made garments accounting for a major share of Bangladesh’s overall textile exports. However, the recent downturn has exacerbated existing challenges, including rising energy costs and compliance with international labor standards.
International buyers have cited factors such as reduced demand in key markets, inventory gluts, and a shift toward more sustainable sourcing practices as reasons for the cancellations. Some retailers have also delayed payments, adding to the financial strain on factory owners.
“We have invested heavily in machinery and training to meet buyer requirements, but now we are left with unsold stock and no clear timeline for new orders,” said Fatima Begum, owner of a medium-sized garment factory in the Rupsha area. “We are appealing to the government for support, such as low-interest loans and export incentives.”
The Bangladesh government, through the Ministry of Commerce, has acknowledged the situation and is exploring measures to stabilize the sector. Officials have held meetings with industry representatives to discuss potential relief packages, including tax breaks and subsidized loans. However, no concrete steps have been announced yet.
“We understand the difficulties faced by the textile sector in Khulna and across the country. We are working with international partners to find solutions, including diversifying export markets and promoting value-added products,” said a spokesperson for the Ministry of Commerce.
Meanwhile, workers in Khulna’s industrial zones are growing anxious. Many have already experienced reduced working hours or layoffs. “I have been working in this factory for five years, but now I only get three days of work per week. My family is struggling to make ends meet,” said Shahnaz Begum, a 35-year-old sewing machine operator.
Labor rights groups have called for urgent action to protect workers’ livelihoods. “The government must ensure that factories do not shut down abruptly and that workers receive their due wages and benefits,” said Kamal Hossain, a coordinator with the Bangladesh Garment Workers’ Solidarity.
Despite the challenges, some industry insiders remain cautiously optimistic. They point to the resilience of Bangladesh’s garment sector, which has bounced back from previous crises, including the COVID-19 pandemic. “The global market will eventually recover, and we need to be ready to meet future demand,” said Islam. “But for now, we need immediate support to survive this downturn.”
The situation in Khulna reflects broader trends in Bangladesh’s textile industry, which faces headwinds from global economic uncertainty. As the sector navigates these turbulent times, the livelihoods of millions of workers hang in the balance.