Textile producers in Bangladesh fear a continued drop in orders from the West given the inflation in connection with the Russian war of aggression in Ukraine.
Factories in Bangladesh, the largest garment producer after China, have received around 15 percent fewer orders from abroad in the past three months compared to May-July last year, said Bangladesh Knitwear Manufactures and Exporters Association (BKMEA) vice-president Mohammad Hatem. on Tuesday of the German Press Agency.
That corresponds to a loss of orders worth more than one billion US dollars. Among other things, Hatem produces for the clothing chain Primark.
Hardly any new orders
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director Abdulla Hil Rakib believes the decline in wartime orders will continue. It is understandable that fashion brands hardly place new orders if they themselves are sitting on their stock. Rakib produces for H&M, s.Oliver and Intersport, among others.
Most garments from Bangladesh are destined for western markets – 60 percent of the earnings come from the EU, according to the BGMEA statistics. The textile sector is responsible for more than 80 percent of the country’s annual export earnings of around 52 billion dollars. According to official information, foreign exchange reserves are currently significantly lower than usual. Bangladesh recently asked the International Monetary Fund (IMF) for aid of 4.5 billion dollars. (dpa)