Bangladesh RMG exporters hope the withdrawal of GSP plus facility in EU for Pakistan may help them to bag more orders. However, for this the government needs to keep yarn prices stable and competitive. It also needs to ensure the availability of containers for shipment with competitive price, and exports should be given financial support from banks. The Bangladesh RMG industry was badly hit by the second wave. It had just recovered from the first wave, and had started getting new orders from July onwards when once again lockdowns were imposed by the government.

Post lockdowns, most exporters have resumed operations as outlets in the EU and the US are opening. However, most exporters are shipping intermediate goods like basic T-shirts and polo shirts due to a lack in demand for festive clothes. This is preventing them from negotiating prices with buyers despite the increase in yarn and other raw material prices. Their production has increased by almost 45 per cent whereas buyers are offering less than the real cost increment.

Exporters’ shipment costs have also increased by over 4-folds which is hindering their export targets.