A good number of international ready-made garment (RMG) buyers have been cancelling their import orders at the eleventh hour without assigning any reason hitting hard the local RMG suppliers.
For cancellation of the import orders country's RMG exporters counting losses worth millions of dollars every year, industry insiders said.
They also said in recent times the stock lot of readymade garment has been increasing forcing them to sell those at discount price.
Interviewing ten of such affected garment factories, the FE found that total loss of those units stood at US $20 million in last one year.
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), RMG worth US $550 million was stockpiled during the last financial year due to the unethical cancellation of orders by importers.
"In recent times the 'Multiline Textil GmbH' a leading German company has cancelled import orders involving $0.985 million without showing any reason", Managing Director of Ultra Design & Fashions Ltd Asaduzzaman Titu told the FE.
He said they have bought fabric worth $ 0.559 million from China and accessories worth $ 0.335 million from the local suppliers after confirmation of the import orders from the buyer.
He said they have already completed more than 50 per cent work after getting the import order but now the buying house is reluctant to receive the goods.
They are now very much worried over the situation as buyers are cancelling their orders in Bangladesh, he added.
Tazul Islam, Managing Director of Anex Fashion told the FE that they have incurred losses amounting to over $ 2.56 million in recent times for cancellation of import orders by Multiline Textil GmbH.
Recently they have sold their factory due to rise in their liability for cancellation of the orders, he added.
Managing Director of Giant Group, a leading woven garment and knitwear manufacturing company, Faruque Hassan told the FE that many international buyers are cancelling their orders unethically at a time when we are struggling hard to survive in the business.
He said that due to the unjust decision of the buyers the country's RMG manufacturers are counting a huge amount of losses.
BGMEA president Md Atiqul Islam told the FE that the RMG industry is passing through a critical period because of cancellation of import orders by international buyers.
He said, "We are going to sit with the global buyers shortly as a good number of buyers have been cancelling their import orders unethically".
However, despite repeated efforts, the comments of Multiline Textil GmbH could not be taken in this regarding.
RMG buyers cancelling orders without assigning any reason
Shah Alam Nur | Published: February 18, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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