** Psychology Dept teachers seeks investigation against Chair' allegation ** BB extended Tk3,000cr agriculture refinance scheme for 3-month ** A vision to move forward ** Jitu beat teacher to show heroism: RAB ** Poor, lengthy implementation of projects create opportunities for corruption ** US, NATO allies vow indefinite support for Ukraine ** Flood worsens further in Sylhet, Sunamganj ** Snatching, robbery, mugging rise in capital ** Eid-ul-Azha on July 10 ** JS passes new national budget without major changes ** Grameenphone shares fall after SIM sale ban ** Their Lordships would not convict him as enemy of the country if anyone had opposed Padma Bridge ** No decision yet to administer 4th dose of Covid-19 vaccine ** Prime accused Jitu, his father arrested ** Digital transaction to be introduced at city's cattle markets ** Desperate bid to keep reserve stable ** BSMMU prison cell becomes resort for VIP inmates: ACC lawyer ** Onion market turns volatile ahead of Eid ul-Azha ** Verdict against Sabrina, 7 others on July 19 ** Bidi workers demand withdrawal of advance 10 percent income tax ** RAB arrests 3 Nigerians in Bhairab; huge passports, foreign money, sims recovered ** Siltation of riverbeds and haors is the main cause of floods ** Export earnings cross $ 50b riding on RMG ** US law enforcement officers work at the scene where 50 people were found dead inside a trailer truck in San Antonio, Texas on Monday which is believed to be one of the most fatal incidents of human smuggling along the US-Mexico border in recent history. Agency photo ** Concern over murder, humiliation of teachers **

Inflation in EU countries slows RMG orders

22 May 2022

Al Amin :
Rising inflation caused by Russia-Ukraine war in European countries has slowed garment export orders.
The country's apparel export to the major apparel export destinations is likely to decline by at least 10 to 15 per cent as the buyers are moving forward cautiously in placing orders.
Inflation in the eurozone hits a new record as the war in Ukraine takes a toll on the European region's economy.
Under this situation, the buyers have started to delay shipment as the demand for clothes in the countries has dropped significantly, the entrepreneurs of the RMG industry said.
"The buyers have started to rein in purchasing orders by postponing orders as the pace of selling clothes in the outlets in EU countries has slowed down a bit," Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) told The New Nation on Saturday.  
"Apparel shipment is delaying. Payment will also be delayed. On the other hand, having production scheduled fixed, we have no option to bring change in it. Resulted, the factory owners may fall into financial crisis again," Hatem said.
Some buyers are also reducing the promised purchase orders and the garment exports after July are expected to decline a slight, he added.
Earlier, speaking at a press conference BGMEA President Faruque Hassan expressed concerns at the alarming rise in global inflation, citing that increasing prices may affect the purchasing power of end-consumers in export destinations and cause demand for garment items to fall.
According to Export Promotion Bureau (EPB) data, RMG exports were recorded $35.362 billion in the first ten months of the current fiscal year, which was 35.98 per cent higher than the corresponding period of the last year. The export is expected to cross $41 billion at the end of the year.
The apparel export recorded $31.45 billion in last fiscal year. Of the amount, 61.77 per cent was exported to EU countries and 18.90 per cent to USA.
On the other hand, the US market accounted for 21.16 per cent, EU 50 per cent and UK 10.69 per cent of total garment exports in the first 10 months of the current fiscal year, according to the EPB data.
Md Akhter Hossain Apurbo, Vice-President of BKMEA, said, "We have sufficient orders to run our factories till June. But many EU buyers are now taking partial shipment as unit price has increased due to devaluation of Euro, EU currency, against US dollar."
"The purchasing orders may slow down after July, if the inflation increases further and the Russia-Ukraine war prolongs," he said. "The buyers are also cautiously moving forward in negotiating prices," he added.

Add Rate