Home ›› 12 May 2020 ›› World Biz
Garment makers for the local consumption are counting massive losses this year as piles of finished clothes remain unsold as retailers are not taking pre-ordered goods because of coronavirus pandemic and countrywide lockdown since April 26.
Clothing markets are abuzz with customers before the start of Ramadan every year but situation is very different this time around as traders are bracing for big losses.
Business insiders on Monday told The Business Post that local garments makers usually invest money in producing finished clothes three to four months before Eid to sell their products to the retailers which they start to pay from 20 Ramadan.
Coronavirus left the finished products piled up in the warehouse as stockpile worth ranging between Tk 70,000 crore and Tk 80,000 crore, said local apparel makers.
Talking to The Business Post on Monday, Alauddin Malik, president of Bangladesh Avhantarin Poshak Prostutkarak Malik Samity said, “We, who make clothes for local customers, are in life and death situation as many of the garments owners failed to sell their garments to the retailers because of closure of most of the markets in the country. Many of the small garments owners will go bankrupt because of debt from the bank”.
“We hoped that government decision to reopen shops and markets will help us to mitigate loss but decision of the most of the market owners association not to open shopping malls and shops before Eid, left us in deep trouble”, he added.
Alauddin Malik, whose organisation represents 20000 small garments across the country made approximately Tk 20000 crore profit during last Eid, said, “We are not hoping for any profit this year rather looking to survive. Government should facilitate us with soft loan otherwise many of us will have to sell their factories to repay the loan taken for making clothes”.
Emdadul Huq, owners of Hira Moni Fashion and Clothes based in Chattogram, said his company invested around Tk 3 crore for making clothes of kids to sell in the Eid market.
He said “Our products are ready to ship but on one is taking clothes from us as shops and markets in larger part of the city remain closed. I don’t know how repay the loan taken for making the clothes. We make bulk of our profit from Eid sale. After investing my capital in clothing, i have nothing left to pay the salary of workers”.
Faruk Abdullah, owner of Bonolata Fashion based in capital, said, I have 3 lakh finished products in my stock but no retailer to buy.
“We suffered a loss in Pahela Baishakh as nation was in lockdown and now in Eid sale. There are some seventy thousands pieces of clothes available in my warehouse for sale. Those who ordered clothes for Eid sale are not responding. I don’t know what I will do with these clothes and how long the overall situation will take to be normal”.
Talking to The Business Post on Monday, Helal Uddin, president of Shop Owners Association of Bangladesh said, “Covid-19 has cast a deep shadow on the economy leaving lower to middle-income group in dire economic stress. This year many people would not be able to buy new clothes”.
sh/wi/teb
