Political Turbulence
RMG makers fear fall in summer export orders
Readymade garment exporters fear that export orders for the next summer may fall as the international buyers are now scared of visiting Bangladesh due to the ongoing political unrest.
The Buyers’ Forum, an association of the buyers’ representatives in Dhaka, has already hinted that if the political turmoil continues, the exporters will have to go to any third country to negotiate orders with the buyers, RMG makers said.
‘We are facing a risk of shifting of orders to the neighbouring countries because of frequent general strikes and political violence,’ Bangladesh Garment Manufacturers and Exporters Association vice-president Shahidullah Azim told New Age on Monday.
The global buyers are observing the situation and if they think that Bangladeshi exporters may fail to make shipment in due time, they must shift their orders to other sources because retailers will not keep their stores vacant, he said.
Global buyers place their summer orders in November-December, he said.
‘The buyers’ representatives in Bangladesh recently at a meeting said that in the prevailing situation it would be very tough for the buyers and brands to come to Bangladesh to negotiate orders with the RMG exporters,’ Shahidullah said.
He said, ‘If the volatile situation continues, the exporters will have to go to any third country for the negotiation which will be very expensive for Bangladeshi entrepreneurs and many of them will fail to arrange such meeting abroad.’
Khandoker Rafiqul Islam, managing director of Golden Refit Garments Ltd, said that the RMG exporters were missing schedule repeatedly due to political unrest and the buyers were loosing their confidence.
He said, ‘Amid the unrest the buyers are cancelling their meetings with the exporters to be held in Bangladesh and inviting the exporters to go to Hong Kong, Singapore or any other EU country for negotiation.’
‘A German retailer has recently cancelled a meeting scheduled to be held in mid November in Dhaka due to frequent general strikes,’ Rafiqul said.
Former BGMEA president Abdus Salam Murshedy said that Bangladesh garments sector had already started losing its competitiveness due to appreciation of the taka against the US dollar.
On the other hand, the political instability in the country in the last one year panicked the buyers which is also a concern for the sector, he said.
‘It is true that a number of buyers have cancelled their business tours in Bangladesh due to hartal and a good number of exporters will have to go to third countries like Singapore to hold negotiation meetings with the buyers,’ Salam said.
He also said that still they Continued on B2 Col. 1
-With New Age input
