The Bangladesh textile and apparel industry’s recent crisis has been felt by the rest of the apparel supply chain and other sub-sectors. For the last two months (September and October) Bangladesh’s textile and apparel industry has been reeling from the global economic crisis.
As a consequence – one of the main sub-sectors of RMG and meets over 95% demand of the local industry – accessories and packaging industry has been bearing the brunt of this crisis and suffering a big drop in work orders. Accessories and packaging industry leaders opined that 30% to 40% work orders have fallen in this period.
Moazzem Hossain Moti, President, Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) said, “In recent times, accessories and packaging work orders have drastically fallen by at least 35% to 40%.”
“In addition, apparel makers are differing our payments as apparel buyers are asking for deferred shipments for already ready goods,” Moazzem Hossain added.
While other BGAPMEA leaders expressed that commercial Banks generally take seven working days to issue maturity letters against exports – whereas, at present accessories makers have to wait up to 45 days in many cases. In addition, sector people do not get paid by the banks even after 120 days.
At present, above 1,800 accessories and packaging companies are registered under BGAPMEA, producing more than 25 items.
As per BGAPMEA, the accessories and packaging industry made exports worth $7.25 billion in the last FY2021-22.