According to industry sources, Bangladesh’s clothing sector may miss out on a chance to turn its losses around owing to the 19-day shutdown of their plants due to Eid vacations and the lockdown.
Because of the deteriorating Covid-19 crisis, Bangladesh’s clothing sector is under lockdown. There is a product scarcity in reputable brand retailers, and they are all asking for rapid supplies of items. Entrepreneurs in the apparel industry are concerned that tougher lockdown would result in the loss of 10-15% of their purchasing orders. Since March of last year, the RMG factories have not had to close at any point of the lockdowns. However, manufacturers are concerned that they may not be able to send their exported items on time during “high season.”
Bangladesh’s home minister has stated that the government has no intention of relaxing restrictions on textile manufacturers. Companies have petitioned the government to enable the reopening of clothing manufacturing on August 1, four days before the shutdown ends. According to Home Minister Asaduzzaman Khan Kamal, the industries would not operate before August 5.
Bangladesh exported $34 billion prior to the epidemic, which was eventually cut to $6 billion. In the previous fiscal year, the industry regained 3 billion, totaling $31.45 billion, or a 12.55 percent increase (FY) However, the shutdown may have an impact on exports. According to certain exporters, they have orders in the supply chain of manufacturers that are 90 percent complete.
Because the plant is closed until August 5, the clothing employees are concerned about their pay. Workers are concerned that they will be paid less than their usual salary since the legislation permits owners to pay half of their regular wages if factories are closed due to an unusual event, such as a pandemic-caused shutdown. They also requested that the work be completed with a minimal number of workers if the lockdown was lifted.
