Lockdowns and tightening of restrictions in several European countries to tackle the second wave of infections have started affecting Bangladesh garment exporters. As per Rubana Huq, President, BGMEA, the lockdown announced by Germany till January 10, will aggravate the negative impact on the exports. The industry is already in such a week position that repetition of even a fraction of first wave is likely to have an intense impact on it, she said. MA Jabbar, Managing Director, DBL Group, added the second wave, as well as the lockdowns ahead of Christmas in Europe, have already impacted shipment from his company.

However, he hopes the situation to improve by April as the vaccinations in Europe will hopefully be completed by then. During the first wave, the sector accepted high discounts and delayed payments to clear the cancelled goods, which had its impact on the financial stability of the industry, Huq said.

 

Garment prices declined by 4.85 per cent year-on-year since September. Factories had to pay wages and all the regular payments, and forced loans have been created against factories mostly working for bankrupted buyers, she added. As per BGMEA, the garment industry lost USD 6 billion in export in FY20.

Source: fashionatingworld.com