RMG export shrunk by 17% in 2020

Coronavirus pandemic has taken a heavy toll on garments export as it reduced by 17% in 2020 than the previous year.

Statistics of Bangladesh Garments Manufacturing Export Association (BGMEA) and Export Promotion Bureau (EPB) revealed that Bangladesh exported garments worth $2731 crore dollars in global market in 2020 which was $3283 crore dollars in 2019.

On this account, export in 2020 reduced by $561 crore dollars which is 17% in comparison with the export volume of 2019.

Those concerned with garments manufacturing blamed Covid-19 for the drop in export as many American and European brands suddenly suspended their shipments and orders amid the outbreak of Covid-19.

Prime mark closed almost all of its retail shops in Europe and these closures ended up in cancelling huge volumes of shipments.

BGMEA said, the impact of Covid-19 is huge as, garments orders worth nearly $3 billion dollars were cancelled till April last year which cast a negative impact on the overall export in 2020.

A handful number of garments exporters told the Business Post that, "Global economy suffered a severe blow due to the pandemic. Economy came to a halt and there is no sign of immediate rescue from the stagnation so far which is also shrinking employment opportunities. Garments manufacturers are trying to survive the challenges riding on the stimulus package declared by the government."

Coronavirus pandemic also shattered the supply chain of raw materials as approximately 60% of those come from China where the virus originated.

Despite improvement in the supply of raw materials, export demand remained low as most of the countries went to lockdown to check the spread of coronavirus.

Despite reinstatement, 80% of the orders cancelled earlier still remain in darkness. 

Many exporters started to place order at a price which is much lower than the usual time.

Talking with the Business Post on Monday BGMEA President Dr. Rubana Haque said, overall market situation is bad as France, Germany and Belgium once again enforce lockdown and emergency.

"If the prevailing situation does not improve significantly, we have to face the double edged sword as Europe is our main export destination after America" added BGMEA President.

sh/wi