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Bangladesh's textile-apparel export to suffer with fuel price hike

08 Nov '21
1 min read
Pic: Grafoo | Dreamstime.com
Pic: Grafoo | Dreamstime.com

The recent fuel price hike in Bangladesh will push up the overall cost of doing business, thereby affecting the competitiveness of the domestic textile and apparel industry in the global market. The hike comes at a time when the sector has just started reviving, bagging sizable work orders. Added to the problem is the rise in prices of raw materials like cotton and yarn, and freight charges.

The government last week raised the retail prices of diesel and kerosene by Tk 15 per litre.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice president Mohammad Shahidullah Azim said business costs would be higher now as many factories are running on diesel-run generators. The cost of transportation would also go up significantly, he said.

The country might not make timely shipment, he added, as it is already in a disadvantageous position due to its long lead time, according to Bangla media reports.

Exporters fear that the flow of orders may not bring sound results as they will face additional liabilities for any failure to ship timely braving all the odds.

Bangladesh Knitwear Manufacturers and Exporters Association executive president Mohammad Hatem said knitting and dying of the local knitwear sub-sector run on diesel.

Fibre2Fashion News Desk (DS)

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