RMG Sector in Bangladesh Suffered a Loss of Us$ 20 Million in The Month of December 2013

The readymade garment (RMG) sector in Bangladesh has suffered a loss of US$ 20 million in the month of December 2013, due to shipment delay, cancellation of orders, extra-burden of air freight, price discounts, and losses due to vandalism, according to a survey, reports Dhaka Tribune.

The survey of more than 38 export-oriented garment factories was conducted by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) found that US$ 5.35 million worth of orders were cancelled while the companies had to dole out an additional US$ 1.56 million for air shipment of their goods.

The garment units surveyed had to pay an additional amount of US$ 1.87 million for failing to ship their products on time, the survey found.

In addition, vandalism cost US$ 2.8 million to exporters while the delay in shipments cost another US$ 9.21 million during the period.

The garment sector contributes about 80 percent of Bangladesh’s foreign exchange earnings, and it is a vital sector for the economy of the South Asian nation. The Bangladesh clothing sector exports goods worth US$ 22 billion annually, and employs about four million people.

The recent elections in Bangladesh has resulted in the ruling Awami League led by Sheikh Hasina winning 232 of the 300 Parliamentary seats, in an election that was boycotted by an 18-party opposition alliance led by Khaleda Zia’s Bangladesh Nationalist Party.