Omicron slows apparel export orders, shipment

Al Amin :
The country’s apparel export orders have started reducing due to spread out of the Omicron, new variant of the Covid-19 pandemic, across the globe.
Buyers from USA and EU countries, major destinations of the Bangladeshi readymade garments, are also asking their suppliers to delay the shipment of their products due to the pandemic as they took go-slow policy.
The RMG exporters said that they are facing troubles with the undelivered products as the number of requests from buyers to hold shipment has been increasing since the mid-December.
Putting the shipment of ready garments on hold by the buyers will create problems for the manufacturers in importing raw materials and producing products for current orders due to a shortage of cash money and space in warehouses, they said.
“New work orders have been declining since the last December due to Omicron. But, the declination will not create any problem as we have sufficient orders to work till June,” Shahidullah Azim, Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The New Nation on Saturday.
“However, the problem is now that the buyers are holding up apparel shipments, which will delay payment. It will also create problem to pay bank loans,” Azim,
also Managing Director of the Classic Fashion Concept, said.
“Besides, it will be a big trouble for the apparel industry, if the Omicron deteriorates further and the buyers cancelled their purchasing orders,” he said.
The export data published by the Export Promotion Bureau (EPB) for July-December of fiscal year 2021-22 showed that export to major markets had a strong come back.
As per the EPB data, USA being the single largest market for Bangladesh posted almost 46 per cent growth during this period compared to the same of FY2020-21, while EU and Canada saw 23.83 per cent and 23.78 per cent growth respectively.
Almost all the EU member countries posted significant growth, Spain, Poland, UK, Germany and France had significant growth.
Non-traditional markets grew by 24.26 per cent during this time and the overall export of RMG during the first half of 2021-22 reached 19.9 billion dollars with 28 per cent year over year growth, the data said.
Mohiuddin Rubel, Director of the BGMEA, said, “We are not worried as no work order has been cancelled or suspended because of Omicron so far. Only a few buyers have demanded deferred shipments for a handful of consignments for 10 to 15 days.”
Bangladesh is gradually getting ready to cater garment work orders worth $7.0 billion to $8.0 billion every month.