Photo : Collected
The export of readymade garments to Germany, the biggest destination for RMG from Bangladesh, has experienced a decline due to prolonged stagflation caused by the Russia-Ukraine war.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), during July-September '23FY, garment exports to Germany dropped by 4.41 percent, from $1.5 billion to $1.4 billion.
The data shows that although RMG exports to Germany have fallen, the country imported more from Bangladesh than other EU countries. This is very concerning for the garment makers. However, Germany imported $1,450 million, Italy $455 million, France $626 million, Netherlands $502 million, and Spain $1,038 million in July-September.
Surprisingly, these five countries imported $4,071 million out of the $5,507 million EU market. Among them, Germany alone imported $1,450 million during the mentioned period.
“We predicted that we would experience a fall during this period. In fact, we have been experiencing fluctuations in exports since last March. Germany is our biggest market. This time, the problem has hit the country severely due to the prolonged stagflation caused by the war,” Shahidullah Azim, vice president of BGMEA, told The Daily Messenger.
“The export promotion data reflects the reality. The government has yet to realise the extent of the crisis. Many factories will face difficulties after December," he said.
He also mentioned, “We have requested the central bank to reconsider the loans, extending the repayment period until June instead of December. Otherwise, the export sector will face severe challenges.”
Muhammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), expressed concern that if the government doesn't address the crisis, imports and exports will be impacted throughout the year. Capital machinery imports have already declined by 18.80 percent as investors have stopped importing machinery for new factories.
“Aiming to attract new buyers, the BGMEA and BKMEA are working together on global branding, and we are also in communication with new buyers,” he added.
Majharul Hassan, Managing Director of JMS Garment Ltd, said, “Entrepreneurs are now interested in manmade fibre-based products. There are now many high-end woven factories in the country, and we need policy support.”
However, in July-September '23FY, Bangladesh earned $11,617.50 million by exporting denim, T-shirts, sweaters, blouses, underwear, etc.
Messenger/Jannatul/Disha
