Bangladesh garment exporters are worried that rising domestic yarn prices will make it difficult for them to cope with growing garment orders from Western markets.
The surge in yarn prices in Bangladesh is “unusual”, industry representatives said.
As vaccination rates become more widespread, stores can reopen, driving garment sales in Europe and the United States; this has also led to an increase in orders from Bangladeshi garment suppliers. Increase.
On August 8 this year, Bangladesh Garment Manufacturing and Export Association (BGMEA), Bangladesh Knitted Garment Manufacturing and Export Association (BKMEA), Bangladesh Towels and Linen Products Leaders of the Manufacturers and Exporters Association (BTTLMEA) expressed their concerns at a meeting held at the BGMEA offices in Dakar.
Leaders of these associations said that Bangladeshi yarn mills are increasing yarn prices every day and issuing proforma invoices (PI) in advance, and they have to spend About 15 days to confirm order. Under this situation, garment manufacturers with the ability to produce were forced to reject some orders; many manufacturers could only accept zero-profit orders in order to maintain business. This has affected the competitiveness of Bangladesh’s garment industry.
According to the latest data from the World Trade Organization (WTO), Vietnam’s garment exports have slightly surpassed Bangladesh’s.
Bangladesh garment manufacturers are now in talks with policymakers to ensure that yarn is sold at “reasonable prices”.
In early August, more than 4/5 of Bangladesh’s garment factories had reopened. However, as the COVID-19 diagnosis rate soared, the country was still under lockdown.
The official number of confirmed cases of COVID-19 in Bangladesh is 1.2 million, with more than 20,000 deaths; however, experts believe that the actual number is at least four times higher than this number.
