The ongoing downtrend in readymade garments (RMG) export will probably continue till April this year, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Rubana Huq, who recently sought an industry perspective to help the association frame its narrative for policymakers to pay heed to the real situation and not the perceived one.
She said the uncertainties and stress caused by the second wave of COVID-19 still persists, coupled with the unavailability of vaccine, and highlighted the impact on the global economy it would leave.The ongoing downtrend in readymade garments export will probably continue till April this year, according to Bangladesh Garment Manufacturers and Exporters Association president Rubana Huq, who recently sought an industry perspective to help the association frame its narrative for policymakers to pay heed to the real situation and not the perceived one.#
Given the effect of lockdowns in Europe and USA and their impact on retail and demand, the worst-ever Christmas sales the world has seen, and most of all the effect of price decline (which is around 5 per cent since September 2020), 2020 was a dark year for the Industry, she said.
"This is one of the most tragic turns in our industry. In the absence of proper restructuring or even an exit policy, shrouded by western bankruptcies, hounded by buyers’ unforgiving contracts and force majeure clauses, factories are facing turbulent times," Huq was quoted as saying by Bangla media reports.
Requesting the government to reassess the perception of the industry doing well and getting all favours from the government, she said jobs of 4.1 million workers is at stake.
Commercial banks have been instructed by Bangladesh Bank to arrange repayment of the stimulus package by the third week of January. Without the moratorium of the salary stimulus package being extended for another six more months or the tenure of the loan being extended by at least a year (which is currently 24 months), the industry will collapse, she said.
"RMG has had consecutive downturn in export in December by 9.64 per cent, which wrapped up the annual export performance for 2020 with an unprecedented fall of 16.94 per cent," she said.
In December, the BGMEA chief said, woven garment export posted worst performance since June 2020, as it declined by 18.07 per cent. Knitwear export managed to have a relatively stable position with a negative 0.45 per cent growth in December, thanks to the demand for apparel for home use, she added.
Fibre2Fashion News Desk (DS)
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