The readymade garments (RMG) sector of Bangladesh has been hit hard by the coronavirus pandemic as the export revenue from the sector has come down to only $366.5 million in April.
The export earnings of the RMG sector in the same month of last year were $2.42 billion, meaning the export slashed by 84 per cent compared to the same month of the previous year.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has revealed this picture of the industry citing National Board of Revenue (NBR) on Sunday.
BGMEA attributed this huge decline in export earnings to cancellation of export orders due to coronavirus and shutdown of RMG factories for around a month.
The RMG sector started to bear the brunt of coronavirus in March. Export earnings were $2.25 billion in that month which is 20 per cent less than the same month of the last year.
BGMEA sources said the export revenue was $3.31 billion in July, $2.4 billion in August, $2.34 billion in September, $2.52 billion in October, $2.51 billion in November, $2.93 billion in December, $3.03 billion in January, $2.78 billion in February and $2.25 billion in March.
The export earnings fell by $1.89 billion in April compared to March.
Buyers and brands started to suspend export orders from the second week of March as shops and markets started to shut during the period.
According to the latest information of BGMEA, export orders of 980 million pieces of apparels in 1150 factories were either cancelled or suspended. This may lead to a total loss of $3.18 billion.
Sweden-based retailer H&M has announced that they will take already prepared products from their designated factories. PVH, Target, GAP, VF Corporation, Inditex, Tesco, LPP and some other retailers also hinted to do the same.
RMG exporters said some brands are demanding discounts.
Former president of BKMEA Fozlul Haque told Prothom Alo that the export earnings might decline by $6 billion in the current fiscal year due to the novel coronavirus.
He, however, hoped that the export income would increase in May compared to April.
Asked about cancelled or suspended work orders, he said it is uncertain if the buyers would buy those products as fashion changes in every season.
According to the Export Processing Bureau (EPB), Bangladesh’s income from RMG export was $34.13 billion in fiscal 2018-19. The export income in the first nine months of the current fiscal year stands at $24.10 billion which is 7.12 per cent less than the first nine months of the previous year.
