May apparel shipment lowest in 9 months
Jannatul Ferdushy || BusinessInsider
Graphics: Business Insider Bangladesh
As the increasing apparel shipment stumbled in May from a monthly average of nearly $4 billion, exporters are worried over the ready-made garment’s future growth amid the Russia-Ukraine war.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh exported apparel products worth $3.1 billion in May, down by $800 million from April’s $3.93 billion.
The export receipts were lowest in nine months since September when additional orders started coming to Bangladesh following easing of lockdown in the country and intensifying Sino-US trade rift.
The proceeds also got affected due to the Russia-Ukraine war which caused global inflation and trimmed clothing demand. And, as sanctions were imposed against Russia, Bangladesh lost some business, too, exporters said.
However, considering the monthly average revenue, the earning stands at $ 3.49 billion (monthly average of 11 months).
“Due to the worsening war, apparel export has declined in May. Already, exporters are sending fewer work orders from Europe, which is our biggest market,” Shahidullah Azim, vice president of BGMEA, told the Business Insider Bangladesh on Wednesday.
Consequently, a good number of small and sub-contracting factories will go out of business if the war prolongs, he said.
“EU is the major market for Bangladesh as the inflation has impacted the EU, we are afraid that cancellation of work orders and payment may stop. Besides, the buyers are taking advantage of the situation as some of them are offering lower prices,” said Ummey Rowman Hoq, director, finance of R.M Group.
In the eleven month of the current fiscal, the total apparel shipment aggregated $38.46 billion. Exporters earlier had estimated that the export would reach $43.5 billion in 22 FY but the current war has erected hurdles.
In the last couple of years, huge work orders have been pouring in the country. Some 70 to 80 percent of the factories are booked until August. But the manufacturers are worrying about next year.
