RMG exports fall by 83pc in first two weeks of April

The readymade garment industry of Bangladesh has been hit hard by the ongoing worldwide shutdown amid the deadly coronavirus spread.

Factories and business houses have been shut amid the coronavirus pandemicin most countries in Europe. World trade has become stagnant.

Garment factory owners are counting cancellation of purchase orders with no hope for any new orders.

The Ongoing lockdown has stopped shipments as well. As a result, garment exports are facing drastic fall.

In the first two weeks of April, garment exports of the country have dropped drastically. From April 1 to 15, Bangladesh exported clothing worth $19 crore 40 lakh which is 83.74 percent less than that of the previous year. In the first 15 days of April 2019, exports amounted to $119 crore 29 lakh 90 thousand.

Moreover, the garment sector suffered a major offset in exports last month. The exports amounted to $197 crore 22 lakh this March which is 26.7 percent less than 2019. In March last year clothings worth $269 crore was exported.

Meanwhile, RMG authorities in the country canceled and suspended export orders of 97 crore 90 lakh products in quantity from 1,140 factories till April 16 which amounts to BDT 26,860 crore.

When asked about the current situation, BGMEA (Bangladesh Garment Manufacturers and Exporters Association) President Rubana Haque said that buyers are suspending purchase orders every day.

“The garment sector is in dire crisis,” she said.

Rubana further said: "Retained buyers have stopped placing orders. They are not paying the factories properly either."

“We have no export. Most of the factories are now closed. We cannot at the moment apprehend what will happen in the future,” she said.

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