Surat, August 10 (HS) — Amid the turmoil in Bangladesh, Gujarat's trade and industry are expected to face severe financial setbacks, particularly in the spice and textile sectors. Gujarat exports a large quantity of spices and fabrics to Bangladesh, and the recent unrest threatens to disrupt this lucrative trade.
The escalating unrest and violence in Bangladesh have put Gujarat's trade and industry at risk of losing thousands of crores. The region’s spice and textile industries are particularly vulnerable, with substantial exports to Bangladesh now in jeopardy. Spices are exported from various parts of Gujarat, while fabrics from Surat are shipped to Bangladesh through Kolkata and Mumbai for use in the garment industry.
According to trade data, the bilateral trade between India and Bangladesh stands at $16 billion, with India exporting goods worth $13-14 billion annually. Gujarat’s spice exports and Surat’s textile fabrics constitute a significant portion of this trade. Trade organizations report that the turmoil in Bangladesh could impact Surat’s clothing business by around ₹500 crore and Gujarat’s spice trade by about ₹3,000 crore. Despite these challenges, there is potential for Surat’s textile industry to benefit if the situation in Bangladesh remains unstable.
The demand for Indian spices, especially chilli, turmeric, cumin, sesame, and isabgol, is high globally, with Bangladesh being a significant importer. Gujarat exports cumin, sesame, and isabgol worth ₹2,500-3,000 crore annually. Hiren Gandhi, Secretary of the Indian Spice Export Federation, noted a decline in exports recently, with over 150 trucks halted at the Bangladesh border. The closure of the Central Bank of Maharashtra has further impeded transaction clearances, leading to a complete halt in imports and exports.
In addition to the spice trade, Surat's textile industry is also grappling with substantial losses due to the unrest. Payments for clothes shipped by Surat traders to Bangladesh are at risk of being delayed or lost. Traders estimate potential losses of around ₹500 crore. The garments manufactured in Bangladesh primarily use cotton and synthetic fabrics, with Surat being a key supplier of synthetic fabrics, especially after China.
Kailash Hakim, President of the Federation of Surat Textile Traders Association, acknowledged the challenges but also pointed out the potential long-term benefits. If Bangladesh's garment industry faces prolonged disruptions, it could lead to a shift in demand towards Surat’s textile industry, potentially mitigating the current losses.
