Bangladesh’s RMG export in April declines nearly 85 per cent

Source:Financial Express Published: 2020/5/6 10:37:39

Ready-made garment (RMG) export in April 2020 declined by 84.86 per cent, which is $366.58 million over the corresponding month in the last calendar year.

Export earnings from the apparel sector were $2.42 billion in April 2019.

Also, export receipts from RMG products last April registered over 81 per cent fall from that of $1.97 billion in March, says the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The BGMEA made the disclosures citing the National Board of Revenue (NBR).

Experts and exporters attributed slow demands due to lockdown in major destinations, including the United States, the European Union and Canada.

The fall in export performance was also due to closure of most of the garment factories in line with public holidays in Bangladesh until April 25.

Exporters said global apparel buyers have either cancelled or put on hold existing orders as they are not placing new orders amid the coronavirus pandemic.

According to the BGMEA, more than $3.0 billion work orders were cancelled or withheld to date since March.

It, however, projected that export receipts from garments might decline by an estimated $5.0 billion between March and May due to the impact of COVID-19.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) senior vice-president Mohammad Hatem said the drastic fall in export was expected as most units remained shut for nearly one month since March.

The performance was the result of late March and few days of April production, he told the FE.

Factories resumed production to do the previous orders, Mr Hatem said, adding that the performance would be the same in May.

There are no new orders and demand side in future is still uncertain, observed the business leader.

According to industry insiders, multiple global buyers like H&M, Inditex, Marks and Spencer, PVH, Kiabi and Target have committed to receiving the previous orders and make full payment.

Meanwhile, Industrial Police said a total of 2,805 industrial units remained open on Sunday.

Of them, 975 are non-RMG units and 289 are under the Bangladesh Export Processing Zones Authority (BEPZA).

Of the units in operation, 1,074 are BGMEA members, 314 registered with the BKMEA and 153 listed with the  Bangladesh Textile Mills Association.

A total of 517 factories did not pay wages for March and other allowances until Sunday.

Of them, 335 are non-RMG, seven BEPZA members and the remaining 175 textile and garment factories listed with the three trade bodies.

Workers from eight garment factories located at Ashulia and Gazipur demonstrated on Sunday on different issues, including payment of wages, according to the police.


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