DHAKA: The owners of country’s garment factories did not get respite despite allowing huge concessions though almost all requirements were complied.
The garments entrepreneurs allowed a huge concession of Tk 1,600-crore in January-February to obtain export orders.
One observation of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) revealed this gloomy picture.
According to BKMEA, presently the garment factory owners are facing many hurdles to get export orders. The entrepreneurs have to concede concessions at the rate of more than six percents. Bangladeshi entrepreneurs have already lost 40 percent orders of its scheduled expectations.
To meet the orders so far received, a concession of 200 million dollars which is equivalent to Tk 1,600-crore is gone. A number of entrepreneurs have admitted this fact.
BKMEA vice-president Mohammad Hatem also admitted this fact of undue concession incurring huge loss.
He told Banglanews that after Rana Plaza tragedy we had gone for all kinds of infrastructural improvement that helped granting certificate of The Alliance for Bangladesh Worker Safety (The Alliance; AFBWS).
“Accordingly, we contemplated for better price this year than previous years,” he added.
“Now, the situation has become such that higher price is a far matter rather we are not getting actual price. Earlier, we took orders for 1.80 dollar and expected two dollars this year. But we have to concede 10 cents less per piece. Now, we are getting 1.70 dollar per piece,” he added.
Similar opinion was expressed by Mehedi Hassan Rana, the Managing Director of ‘Zara Jeans’.
He informed banglanews, “Earlier I used to get orders from a buyer of an EU country at the rate of 18 dollars per piece of Jeans. But after fulfillment of compliance I hoped to increase the price to 19 or 20 dollars. But unfortunately I had to reduce the price to 12 dollars from 18 dollars to get orders”.
Mehedi Hassan said that the 12 dollars price will not cover the production cost. Only the wages of the workers will be possible to pay where profit is a far matter.
“We are taking the risks for the continuation of business but it is uncertain how long it will be possible to continue.”
A BGMEA director has taken orders of Polo T-shirt at the rate of 4.50 dollars which is usually cost 10 dollars, said sources cornered.
According to information of BGMEA, due to the present political unrest prevailing in the country 80 percent purchasers are not taking the risk of travelling this country.
The entrepreneurs are going abroad to settle the export orders with the importers of garments. This over enthusiasm of the exporters has compelled the owners to allow extra reduction of price during meetings with foreign purchasers. Even some of entrepreneurs are returning empty handed.
The ongoing blockade program has already slapped a loss of Tk 30,000-crores in garments sector in the month of January only.
This political unrest will make it difficult to attain the target of garment industry to the tune of 27 billion dollars, the BGMEA added.
The 20-party alliance had called an indefinite blockade program when they were denied to organize rally on last January 5. On the other hand, during last couple of weeks the alliance is enforcing ‘hartals’ except Friday and Saturday.
During the blockade and ‘hartal’ programs so far 90 people were killed by petrol bombs. The garment importers of the world are raising many questions about the situation in the country, as opined by the BGMEA and BKMEA leaders.
BDST: 1657 HRS, FEB 26, 2015
