The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have warned that the soaring cost of fuel is putting a significant strain on the country’s knitwear sector. The alert comes amid a warning that growth in Bangladesh’s apparel exports could halve this year as a consequence of the cost of living crisis in Europe and the US. A statement from the BKMEA has warned that the impact of the recent 50 per cent hike in energy prices could reduce the competitiveness of the key export industry on the global market.
Urging the government to provide assistance, BKMEA President AKM Salim Osman said: “We are shocked as the government announced the hike when oil prices in the international market are on a downward trend,” adding that there was an urgent need for limited term support to help the ongoing development of the knitwear industry.
Meanwhile, Reuters reports that growth in Bangladesh’s garment exports could drop to about 15 per cent this year after an unusually strong expansion of more than 30 per cent in 2021, as U.S. and European customers struggle with the ongoing cost of living crisis.
The garment industry accounts for more than 80 per cent of total exports for Bangladesh, which sells to clients such as Walmart, Gap, H&M, Zara and VF Corp. The slowdown follows a surge in sales in 2021 following the end of the Covid-19 lockdowns.
Miran Ali, Vice President at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told Reuters: “We should be at about 15 per cent growth for the calendar year – this is going to be a normal year. Last year was an abnormally high jump.”
Fazlul Hoque, Former President of the BKMEA, agreed that exports would rise by about 15 per cent this year. Hoque said his customers were delaying orders by a month or so and cutting order sizes. One big U.S. client, which he declined to name, initially wanted a small shipment that was to leave this month to be delayed until December.
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have warned that the soaring cost of fuel is putting a significant strain on the country’s knitwear sector. The alert comes amid a warning that growth in Bangladesh’s apparel exports could halve this year as a consequence of the cost of living crisis in Europe and the US. A statement from the BKMEA has warned that the impact of the recent 50 per cent hike in energy prices could reduce the competitiveness of the key export industry on the global market.
