RMG Sector of Bangladesh in Grave Danger

Ready-Made Garments (RMG) is the maximum foreign currency earning source of Bangladesh. The sector contributes significantly to the GDP. It also provides employment to around 4.2 million Bangladeshi people, mainly women from low income families. Starting from 1980s RMG sector has become the largest industrial sector of Bangladesh. But this sector is now about to be ruined because of political unrest.

On account of recent political turbulence RMG sector is facing considerable amount of loss which is about twenty four million and two hundred thousand US dollar or 189 crore taka and it is the calculation of only last two months. Few days ago 40 factories have submitted the documents of their estimation of losses during the months of January and February to the authority of Bangladesh Garment Manufactures & Exporters Association (BGMEA). The documents showed the summary of losses-

Reasons of losses	Amount of losses (US$)
Order cancellation	1.18 crore
Discount to buyers	8.54 lakhs
Air freight cost	11.04 lakhs
Losses due to sabotage	42.73 lakhs
Late shipment	61.86 lakhs

Total amount of losses in RMG sector

These factories have undergone total 2.43 crore US $ of losses. As the political parties are not exhibiting any willingness to compromise, the amount of losses are about to increase rapidly. BGMEA have made a list of their demands to gain convenience from the Government in this critical situation. They have decided to send letter to the Government to remit bank interest for six months and they have already met with the finance minister to uphold this demand.

Reported by-
Md. Tanvirul Haque Bhuiyan
Reporter of Textile Tribune
Dept. of Apparel Manufacturing, NITER.
Email : mukutex@gmail.com

9:31 PM