30% of clothing export orders postponed

October 22, 2022, 10:50 p.m.

Last modification: October 22, 2022, 10:58 p.m.

Md Shahidullah Azim. Illustration: TBS


Md Shahidullah Azim. Illustration: TBS

For two to three months, foreign buyers have suspended and postponed their orders. We estimate that approximately 30% of orders were deferred during this period.

Furthermore, the production of our factories has also decreased by at least 30% due to a reduction in export orders. Many factories are now operating at 50% capacity. Some factories have not received orders for November and December.

And the situation should not improve before next January.

Again, those of our member mills that are running on diesel due to low gas supply have experienced a spike in production costs.

The prices of cotton and yarn fall, but we have no possibility of reaping additional benefits. Indeed, as soon as the price of cotton falls, buyers reduce the prices of clothing at the same rate.

In this situation, it will be difficult for many garment factories to repay bank loans in the future. The interest burden on loans is increasing and some are seeing their LC facility limit blocked.

The clothing sector today is in a difficult situation.

Md Shahidullah Azim is the Vice President of BGMEA

Michael O. Stutler