They agreed after being informed of the higher air freight costs, says the association’s President Kochi
Buyers have agreed to accept the products at the specified prices despite the complications caused by the four-day shutdown of factory and port services in ready-made garment exports, according to the BGMEA.
SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association, or BGMEA, discussed these developments and the apparel sector’s challenges following a meeting with buyer representatives at the association’s office in Uttara, Dhaka on Monday.
The country had experienced violent protests over job quota reforms, which led to a complete shutdown and the imposition of a curfew, resulting in the temporary closure of industries and factories.
The BGMEA had informed buyers of the overall situation after the resumption of operations, said Kochi.
After the meeting, Kochi told reporters: “We have held a meeting with the Buyers Forum, which represents the buyers. They were unable to communicate since the internet was shut down from the 18th of July.”
“They were concerned, but now that the internet is back, they can get in touch.”
“They have assured us, in response to our demands, that they will not cancel any orders due to the shutdown and will not request any discounts,” he added.
The BGMEA president said buyers agreed to both proposals after being informed of the higher cost of air freight.
They discussed the reopening of factories and the restoration of transportation services.
Buyers also requested the continuation of uninterrupted internet services.
The government declared a curfew on Jul 19 due to the escalating violence in the quota reform movement, with a general holiday announced.
Factories and industries reopened partially on Jul 24, operating from 8 am to 4 pm.
The curfew was relaxed on the following days, with a new time frame of 7am to 6pm.
Kochi said the garment export sector incurred losses amounting to Tk 110.5 billion during the four-day shutdown.
Of this, Tk 74 billion was lost in the production sector, with an additional Tk 30 billion lost in the washing and linkage sectors.
In response to questions about the substantial losses despite buyers’ willingness to accept deliveries, he said the supply chain had collapsed, workers did not receive their wages, and interest on bank loans will be payable later.
All these factors contributed to the losses, he added.
Regarding concerns about order cancellation, the BGMEA president said: “The buyers have been doing business in Bangladesh for a long time and are aware of the country’s political situation.”
“They were concerned due to the internet outage, but that is no longer an issue.”
He requested that the apparel sector be kept exempt from strikes and shutdowns, as it has been in the past.
IMPACT OF PROTESTS ON APPAREL SECTOR
The BGMEA updated international buyers on the recent situation and its impact on the apparel sector, according to a press release.
The association informed buyers about the steps being taken to resume normal operations and maintain an uninterrupted supply chain, the statement said.
The press release also noted that during this unprecedented period of disruption, all stakeholders, including garment factories and buyers, have faced hardships.
The factories are now in the process of discussing new orders and prices for winter clothing.
It is mentioned that such chaos has struck a blow to the national economy.
During the four-day closure, some production and exports were lost, and marketing efforts have been damaged.
Consequently, the factories have suffered financially and in their supply chains.
The release describes this situation as a major setback for the industry while they were striving to survive.
The release further mentioned that while delays in import and export services due to port closures occurred, the government has agreed not to charge additional fees for these delays, as confirmed by State Minister of for Shipping Khalid Mahmud Chowdhury.
