RMG exports by Bangladesh have been declining continuously since the last five months. As per a report by the BGMEA, exports of knitwear and woolen garments combined declined to $4,360 million in June 2023 from $6,165 million in October 2022.

According to factory owners, reduction in purchase orders by 20 per cent is one of the major reasons for the decline in RMG exports by Bangladesh, says Rakibul Alam Chowdhury, Vice President, BGMEA

A 35 per cent increase in production cost including workers increased wage, together with lack of purchase orders is likely to lead to many factories closures in the next three months, he adds. 

According to an analysis of Monthly Utilisation and Declaration Report of Readymade Garment Exports, as well as date of BGMEA, BKMEA and Chattogram EPZ, Bangladesh’s RMG exports decreased by 13.93 per cent in October due to lack of export orders resulting from  global economic recession and the recent increase in  garment workers wage by 56.25 per cent.

Also due to delayed and slow purchase orders, exports got delayed leading to a delay in payments. As per BGMEA data , Bangladesh’s apparel exports decreased consistently  in last five months.

In June, Bangladesh’s RMG exports stood at $4,360 million. These decreased to $3,943 million in July.to further increase by$91 million to $4,444 million in August, In September 2023, Bangladesh RMG exports declined to $3,618 billion before increasing once again in October. 

Export data of Chattogram EPZ shows, RMG exports stood at $ 219 million in June, and $153 million in October. In September, value of exports from Ctg EPZ increased to $150 million, from $172 million in July. The value of exports increased to $181 million in August.

Syed Mohammad Tanvir, Managing Director, Pacific Jeans warns, increased production cost together with  increased workers’ wages will make it very difficult for the owners to run their factories in future.