Home ›› 01 Dec 2021 ›› Front
The detection of new Covid variant Omicron in Europe and subsequent containment measures worry Bangladeshi exporters barely recovering from the pandemic’s first wave shock.
People infected with Omicron have been detected in several European countries and health experts warned that this variant might spread rapidly, forcing many countries to bring back restrictive measures. The Netherlands, for example, effectively imposed a shutdown for three weeks. While Slovakia and Austria imposed lockdown, Belgium went for a semi-lockdown.
European buyers are now asking the manufacturers to slow production until the situation improved, stoking fears of a fall in forex earnings and a repetition of the 2020 scale outbreak.
Apparel exporters have urged the government to arrange vaccines for workers as soon as possible to keep production uninterrupted.
Export Promotion Bureau data show that around 60 per cent of export earnings come from European countries with the UK, Germany, France, Spain, Italy, Netherland, Belgium, Sweden, Poland and Denmark being the most significant sources.
On Saturday, the UK reported 39,567 Covid cases and 131 deaths, Poland 26,180 new cases and 378 deaths, France 37,218 cases and 34 deaths, Germany 49,311 cases and 170 deaths, Italy 12,877 cases and 90 deaths, Netherlands 22,031 cases and 55 deaths, Belgium 21,772 new cases and 47 deaths, according to Worldometer.
Although the latest surge has not affected export or work order, industry insiders said they feared a protracted virus problem in Europe might cause shipment delay and slow work orders.
They said buyers had warned them that due to new infection, they are bound to allow shipment delay and if that happens, exporters will face financial crisis again.
Currently, there is no news of shipment delay or order postponment. On the contrary, the rate of new orders for the readymade garment sector is quite good but the latest virus crisis in Europe has already started affecting the jute sector.
Esrat Jahan Chowdhury, Chief Executive Officer of Tulika and director of Bangladesh Jute Goods Exporters Association, said that from last April, their export earnings declined by around 32 per cent compared to the same time of the previous year. She identified the Covid-19 situation as one of the main reasons.
“We, especially those of us who export diversified goods, Europe is our main destination. Buyers are starting to place orders from the last month. But the new lockdown has put us under pressure. We will suffer If the crisis lasts longer,” Esrat said.
“Buyers have already warned me that if the infections and fatalities shoot up, they will delay new orders. If that happens, how we will run our factories?” she added.
Apparel exporters claimed that although no order has been postponed, they are worried over the spread of the new covid variant in Europe.
Md Khosru Chowdhury, managing director of Nipa Group and director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that the sector suffered during the initial virus outbreak.
“European market opened from April thanks to mass vaccination and we have enough work orders,” he said. “But buyers will delay shipments if there are lockdowns.”
Shahidullah Azim, vice-president of BGMEA, said, “Though new lockdown will not affect us as they did in the past, it may affect our export earnings. A few days ago, buyers pressured us for quick shipment, but now they are telling us to ‘go slow’, which indicates that they worried about the new virus.”
He was optimistic about the improvement of the situation, saying that Europe had a very good vaccination coverage.
Faruque Hassan, president of BGMEA, said that they were worried for both Europe and Bangladesh. He recalled how the government had imposed lockdown to curb the virus’ spread, forcing factories to suspend operation.
“We urged the government to provide vaccine to our workers on a priority basis and got a positive response but we cannot ensure inoculation for our workers. If the new variant hits Bangladesh and the government imposes lockdown, we will be the main sufferer because we are the largest exporters,” Faruque added.
