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Apparel exporters face double whammy

29
May '06
Recent series of violent acts carried out in and around the capital Dhaka, by groups of workers in garment units have more misery lined up for apparel sector.

The workers agitation has had buyers clamoring for price discounts of five percent to 25 percent for delay and shipment by air instead of sea freight resulting into a fivefold increase intransportation charges, said apparel sector operators.

Clients may even cancel orders if demands are not met, they said.

"I cannot calculate right at this moment the financial losses. We'll thoroughly assess the losses in this connection within a few days," said SM Abu Tayeb, first Vice President of Bangladesh Garment Manufactures and Exporters Association (BGMEA).

Over 200 garment units had been pillaged and several RMG units were torched between May 22-24, 2006, by garment workers in order to get their demands implemented.

The unfortunate happening erupted on May 22 in Savar and Gazipur districts and spread to Dhaka and its surroundings like wild fire.

Foreign based groups have joined forces with some non-government organisations and have conspired against readymade garment (RMG) sector, allege apparel unit owners.

Several NGOs including USA-based 'Bigof' are out to hurt the RMG sector's image and wean away customers to India, Pakistan and Sri Lanka, they claimed.

China along with Bangladesh are favored by the USA, Canada and the European countries for its low price and good quality clothing whereas India, Pakistan and Sri Lanka, are the next choice, they claimed.


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