RMG exports to India face rough roads


Bangladesh’s ready made garments (RMG) exports to India has countered a severe decline as atleast 22 local garment factories have failed to secure payment of nearly $5.0 million from an Indian buyer Liliput Kidswear Ltd, exporters in Dhaka said, according to the sources.

According to a report on the Indian based website, it mentioned, labours in their factories may get provoked if they default bank loans and fail to pay workers’ wages.

The report stated, “This issue, according to sources, has put a break to the tempo in RMG exports to India since many of Bangladeshi garment manufacturers have lost their confidence to export to the neighbouring India, a huge market for Bangladesh.”

“The entrepreneurs of 22 garment manufacturers, who have not received their payments from the Lilliput, will soon sit with the new committee of BGMEA to find out ways how to realise the payment,” the report added.

“India is a potential market for Bangladeshi readymade garments but the exporters are now not interested in doing business with Indian companies fearing that they might again be victims of incidence like of Lilliput,” the report noted.

A managing director of one of the affected apparel units expressed disappointment saying, “We do not want to lose the Indian market for the fraudulence of any individual importer and so we sought cooperation from Indian president Pranab Mukherjee who recently visited Bangladesh. But we are totally frustrated as our last attempt also went in vain.”