Home / Knowledge / News / Apparel/Garments / B'desh garment exporters hit by Indian payment crisis

B'desh garment exporters hit by Indian payment crisis

28
Mar '12
Bangladesh's readymade garment (RMG) exports to India has hit a hurdle as more than 20 apparel firms have failed to receive timely payment from an Indian company to which they had supplied goods, according to exporters.

In September last year, the Indian Government extended duty-free access for Bangladeshi clothing item exports to India. This step was welcomed by Bangladesh's RMG exporters and generated a lot of enthusiasm among them to explore the Indian market.

However, with one of the Indian companies failing to timely pay for its clothing item imports from Bangladesh, it is now being feared that it might affect Bangladeshi garment firms.

Speaking on the issue to fibre2fashion, Mr. Md Siddiqur Rahman, second Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, “A well-known Indian kidswear retailer, which is now facing financial trouble, has not paid its dues, which is severely affecting the Bangladeshi garment industry.”

Informing about the number of units that are affected due to non-payment of dues by the Indian retailer, he says, “There are 23 RMG factories in Bangladesh whose payments have been stuck up. Some of them have not received their payments since more than a year. The payment due is more than Tk 500 million. The 23 apparel units are now on the verge of collapse.”

Talking about steps that are being taken to resolve the issue, he mentions, “We have complained to the Governor of Bangladesh Bank, who has raised the issue with the Deputy Governor of the Reserve Bank of India. We have also complained to Centre for Policy Dialogue (CPD), our Foreign Ministry, the Ministry of Commerce, Bangladesh Embassy in India as well as the Indian Embassy in Bangladesh. So, everybody is aware about the issue.”

“Our Commerce Secretary, who is currently in India, is also expected to raise the matter during his discussion with Indian officials on bilateral issues,” he adds.

Mr. Rahman winded up by saying, “The Indian retailer has given commitment to make the payment by 30th June, 2012.”

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 8th May 2021

French Development Agency to invest $83m in Ivory Coast cotton sector

Over a period of five years, the French Development Agency (AFD) will ...

Pic: Juki

Apparel/Garments | On 8th May 2021

Japanese companies collaborate to develop sewing machine business

Juki Corporation and Pegasus Sewing Machine Mfg have entered into a...

Pic: Rocky Brands

Apparel/Garments | On 8th May 2021

Rocky Brands expands Made in America capabilities

Rocky Brands has expanded the offering of its Made in America product ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Sanjay Vakharia,

Sanjay Vakharia

One of the first few Indian denim brands, Spykar, established in 1992, was ...

Ritu Oberoi,

Ritu Oberoi

Established in 2018, Forsarees is a socially driven business enterprise,...

Amanda Cioletti,

Amanda Cioletti

The entertainment/character segment lead as the largest sector for the...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Archana Jaju, Label Archana Jaju

Archana Jaju
Label Archana Jaju

<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search