Apparel makers rue that they are receiving less work orders and running factories below the capacity, although export earnings grew on the back of cost-price hike and quality upgrade.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) came up with the claim Tuesday, attributing the quantitative squeeze in clothing export to the prevailing global crunch that limited consumption in the West.
Global buyers and retailers are cancelling and keeping the work orders on hold in the wake of the volatile global economic situation that resulted in the stockpiling of the clothing items in their (buyers) stores, association leaders said in a press briefing on the country's main export sector.
"Work orders have dropped in recent months. We witnessed a 22-percent and over 26-percent decline in issuance of utilization declaration (UD) in November and December last compared to that of 2021," BGMEA president Faruque Hassan told reporters.
Data show work orders in terms of quantity decreased although there is growth in export earnings, he responded to a question while addressing the press conference on law-and-order issues concerning the RMG sector. The press meet was held at the trade body's headquarters at Uttara in Dhaka.
Export earnings grew as local manufacturers are manufacturing value-added items and because of high prices of raw materials that raised the unit price of apparel, he said to explain the trade paradox.
Export of RMG products fetched Bangladesh US$27.41 billion during the first seven months of the current 2022-23 fiscal year, recording a 14.31-percent growth, according to Export Promotion Bureau (EPB) data.
Mr Hassan, however, said many factories were running eight hours and they don't perform overtime in absence of sufficient work orders.
"Many of the factories remain shut for two or three days a week and are receiving work orders with lower prices to run business," he noted.
Conversely, amid such a situation, cases of stealing from exportable goods-laden cargo trucks on the Dhaka-Chattogram highway have also increased in recent times, which is tarnishing image of both the sector and the country, he said.
The BGMEA president demanded stern action against the miscreants who are involved in the highway holdups.
"The law should be amended to make tough provision to punish the thieves engaged in export-cargo robberies on the highways," he said, following detection of one case of such highwaymen turning tycoons.
The BGMEA demanded completion of CCTV installation on the Dhaka-Chattogram highway by next March, developing database of all covered-van drivers and helpers and sharing the information with stakeholders.
Some companies are busy dealing in such stolen products and export to different countries as stock lot, he said, recommending ensuring origin of the goods and proposed BGMEA and BKMEA certification in exporting stock lot.
Regarding the energy-price hike, he reiterated a business plea for a review of the gas-and electricity-price hikes, saying that the recently hiked tariffs will create an extra burden on cost of production and cause loss of their competitiveness on the global market.
He said the government should raise the energy prices at a reasonable rate-and in phases.
The BGMEA president also requested the government to take measures to stop illegal fuel connections and leakage.
Association vice-presidents SM Mannan Kochi and Md Shahidullah Azim and director Mohiuddin Rubel were among others present.
