Wednesday, July 15, 2020

374 RMG factories shut, 30 per cent fall in orders

Staff Reporter :
Some 374 garments factorie have been closed due to the coronavirus epidemic, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
BGMEA leaders said that the foreign buyers have curtailed their import orders by 30 per cent during corona period costing Bangladesh loss of $4.33 billion in just three months.
However, the owners of garment industry expect that they would be able to recover in November and December.
Former BGMEA President Anwar-ul- Alam Chowdhury said, the international buyers of the garment industry are in a dilemma. 
At present 1,900 factories are in operation.  Surprisingly the US buyers hesitate to place orders in Bangladesh for coronavirus, whereas corona attack in their own country is the bitterest.
As a result, if there is no work in the factories, those may be declared lay-off, Anwar-ul- Alam said.
International research organizations said that the global demand for clothing will reduce by 30 to 50 percent due to Covid-19 epidemic.
According to BGMEA, some 348 garment factories have been closed due to the coronavirus epidemic, those are members of BGMEA and export loss was USD 4.33 billion in just three months.
On the other hand, exports have decreased by USD 6.18 billion in the departed 2019-20 fiscal years.
Besides, some BKMEA 26 garment factories have been declared closed.
BGMEA and BKMEA sources said, 3.17 billion USD priced garments order have been cancelled in Bangladesh since March.
According to data released by the Export Promotion Bureau (EPB), the main source of export earnings was garment exports worth $27.95 billion during the past 2019-20 fiscal year. The target was 38.20 billion USD.