The devastating fire at the cargo village of Hazrat Shahjalal International Airport (HSIA) has caused immediate losses exceeding $8 million for Bangladesh’s textile and readymade garment sector.

Industry leaders have warned that the blaze, which destroyed large quantities of raw materials, could disrupt production of specific work orders, potentially leading to delayed shipments, discounts, or even order cancellations.

Inamul Haq Khan, Senior Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the association had received 2,187 reports of losses amounting to approximately $7 million as of Wednesday.

He explained that a single factory often has multiple entries of imported raw materials, including samples of finished goods such as T-shirts and trousers, fabric, accessories like zippers and buttons, and machinery.

He explained that one entry included around 70,000 unique buttons for sweaters, all of which had been destroyed in the fire, and said the factory would need to re-import them, delaying production of the affected work orders by at least a month.

He added that the loss was not only of raw materials but also disrupted entire production lines for specific orders.

Following the fire on October 18, the BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA) requested members to report any losses of imported goods.

Fazlee Shamim Ehsan, Executive President of BKMEA, told the Financial Express that they had received 36 reports of losses totalling around $0.25 million.

He said that while the direct loss was the destruction of goods, the consequential impact could be far greater, affecting production of exportable goods, delaying shipments, incurring additional air freight costs, and potentially undermining buyer confidence.

BTMA reported that 48 member mills had suffered losses of Tk 168 million ($1.37 million) across 71 letters of credit (L/Cs) as of Tuesday evening. Trade body leaders warned that the total loss could rise once all affected members submit reports.

Md Shahriar, President of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), said initial losses in the accessories sector were around Tk 230 million.

Meanwhile, Bangladesh’s pharmaceutical sector has also been hit hard. Industry leaders reported on Tuesday that approximately 45 leading drug manufacturers suffered losses of raw materials and machinery worth Tk 2.0 billion.

The fire is expected to have a broader economic impact of over Tk 40 billion in the coming months, threatening production of essential medicines, including antibiotics, cancer drugs, diabetes treatments, and vaccines.