Over 500 RMG units go out of operation in 7 months

FE Team | Published: August 11, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Jasim Uddin Haroon
Around 535 garment factories out of about 4000 in Dhaka and Chittagong went out of operation during the last seven months, according to a survey carried out by the Bangladesh Garment Manufactures and Exporters Association (BGMEA) recently.
"We are really in trouble. The sector has been facing a tough time since October last. The orders from the buyers fell by 40 per cent during the period," Anowar-Ul-Alam Chowdhury Pervez, BGMEA president said.
He also said not only small factories but also a few larger ones like New Age, Fortune have also been closed due to decline in overseas orders.
According to BGMEA sources, political chaos during the last quarter of 2006 and adverse global weather conditions were the major reasons for lesser export orders.
The garment factories usually get their main orders for making summer-wear products in September-October and winter apparels in January-February, sources said
But, the local apparel manufacturers failed to get purchase orders in last October due to the political chaos while adverse weather conditions in Europe and North American countries forced the leading retailers to cut their orders.
BGMEA sources said the inclement weather with April shower in the USA and Europe also forced the local units to get lesser orders.
They said Wal-Mart's sale has dropped by 3.5 per cent across the globe due to such bad weather conditions this year.
However, the BGMEA leaders are hoping that they will get fresh orders from coming October.
BGMEA leaders are expected to meet the ministries of finance and commerce shortly to apprise them of the latest situation.
The BGMEA president said they will seek short term loans from the government for sustaining the sector.
In the meantime, sources at the Bangladesh Knitwear and Manufacturers and Exporters Association (BKMEA) said the export orders for sweaters also declined this season.
The order of the knit factories fell by around 20 per cent mainly due to continuation of warm weather in the northern hemisphere, said BKMEA president Fazlul Hoque.
Apparel manufacturing sources said their profit margin has reduced due to strong local currency against US dollars.