Bangladesh: Garment manufacturers forced to bear cost of rising prices amid war on Iran
"Bangladesh garment makers see some costs triple in wake of Iran war", 6 April 2026
Bangladesh's garment makers are reeling as the Iran war makes key synthetic fibers and chemicals...more expensive... squeezing margins as customers resist paying more for their existing orders.
Senior figures in the industry...say a price surge has "already kicked in," driven by rising global oil prices and disruptions to supply chains of petroleum-based resources...
"All yarn and raw material prices are going up -- not only polyester and nylon," said Navidul Huq, managing director of Mohammadi Group...
Shams Mahmud, managing director of Shasha Denim, said petroleum-based input costs have risen by around 10% to 15%, while some chemicals have seen far steeper increases. Sulphuric acid, used in fabric processing, has jumped...
Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said cost pressures are spreading beyond garment-related inputs to other energy-intensive resources, for example the paper used for cartons.
"Some suppliers are also raising prices in anticipation of future challenges," he said.
Despite rising costs, it is not possible to pass on the increases to buyers for existing orders, Shasha Denim's Mahmud said, forcing them to absorb losses in the short term.
"If we cannot ensure uninterrupted gas and electricity supply, then we will not be able to meet production deadlines," he said. "In that case, we may be forced to shift to air shipments, which are significantly more expensive."...
Shehab Udduza Chowdhury, vice president of BGMEA, said transport costs are rising as diesel shortages force transporters to take longer or indirect routes to secure fuel...
"When transport costs go up, buyers try to pass that burden onto us," he said. "They say it's not their fault, but it's not ours either, yet we are being asked to absorb these additional costs."...
Exporters say there have been no immediate cancellations in core markets such as the United States and Europe, but worries are nonetheless growing...
Meanwhile, emerging markets in the Middle East, previously seen as a growth area, are already showing signs of being impacted...
Chowdhury said overall demand already declined by around 25% last month compared with the same period last year, reflecting a combination of inflationary pressures in export markets and trade disruptions...