Created opportunity for BD carpet exporters

Reza Mahmud :

USA’s imposing 50pc reciprocal tariff pushed Indian carpet industry in a brink while it created huge opportunities for Bangladeshi manufacturers and exporters, sources said.

In this view, booming carpet industry also help Bangladesh to diversify its export baskets, business leaders said.

After U.S. President Donald Trump imposed a 50 percent tariff on India, several hundred Indian carpet exporters are in deep fear about the future of their businesses. Initially, on August 7, a 25 percent tariff was imposed, and later, on August 27, an additional 25 percent was added due to India’s imports of Russian oil. Trump alleged that by buying oil from Russia, India was fueling the war in Ukraine.

India’s carpet industry is largely export-oriented. Hand-woven and Persian-style carpets are highly popular in the United States. The industry earns about 160 billion rupees ($1.83 billion) annually and employs 2.5 million people, mostly weavers.

Bhadohi controls 80 percent of the trade, with 1,200 exporters and manufacturers and around 1.4 million livelihoods tied to the sector. “Such high tariffs have destroyed us,” said Piyush Barnwal, Director of the Carpet Export Promotion Council, noting that the U.S. accounts for 60 percent of exports. Exporter Sanjay Gupta stressed its role as a cottage industry, creating large-scale employment.

Exporters fear Turkey (15 pc tariff) and Pakistan (19 pc) could capture the U.S. market. “If a solution does not come quickly, our share will shrink,” they warned.

In this situation India’s neighboring Bangladesh also sees it as an opportunity, business leaders said.

When contacted, Ashraf Ahmed, former President of Dhaka Chamber of Commerce and Industry (DCCI) told The New Nation on Friday, “USA’s additional tariff imposed on Indian export goods, created opportunities in Bangladeshi products. Carpet is one of the sector could be benefited well from this.”

Bangladesh specially is manufacturing jute based carpets, and it is being exported abroad.
“Bangladeshi carpet manufacturers need more time to capture the chance of getting huge portion of US carpet market as they have to diversify their products including using wool as like the Kashmiri carpets,” the business leader said.

Sources said, Bangladesh has resumed exports of jute-based carpets, with earnings rising steadily. In FY2021-22, exporters earned a record $36.8 million, up 10 percent year-on-year, according to the Export Promotion Bureau (EPB). This was the fifth straight year of growth since 2017-18, when earnings were only $19.49 million.

Bangladesh, the world’s second-largest jute producer after India, was a notable carpet exporter in the 1980s but saw exports collapse in the 1990s, with all seven mills shutting by 1995. The revival is linked to climate concerns and rising eco-consciousness in Western markets.

“People are becoming increasingly eco-conscious,” said Shafiqul Alam Selim, managing director of Karupannya Rangpur. Developed nations are pledging to cut pollution and promoting jute as a plastic alternative. “If natural materials are to protect the world, demand for jute carpets must rise. That would expand our market,” he added.

Bangladesh now exports carpets and floor coverings to the U.S., UK, China, Germany, Australia, France, South Korea, Canada, and other countries. Exporters credit government support but say many entrepreneurs lack the strength to capture global markets. Compliance with international standards remains a challenge.

Selim stressed that while compliance is costly, it creates growth opportunities. Shahedul Helal, vice-chairman of Bengal Braided Rugs, noted that several fully compliant factories are now in operation, drawing major international retail chains to source from Bangladesh.

Challenges remain: volatile raw material prices, a shortage of skilled workers, and weak compliance among backward linkage suppliers, which complicates relations with foreign buyers. Yet Helal, who in the 1980s worked as a Bangladeshi agent for U.S. and Australian carpet importers, believes the industry has strong global potential.

He said new private factories now meet international standards, positioning Bangladesh well in the world market.