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Home / Knowledge / News / Textiles / Orders for knitwear sector fall

Orders for knitwear sector fall

08
Nov '08

It has been noted that the export orders for knitwear sector dropped significantly in October.

Confirming the news to Fibre2fashion, source from Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) informed that the US and the EU still remained the chief markets for knitwear industry of the country.

Statistics show that in fiscal year 2008-2009, knitwear and woven sector accounted for 39.21 and 36.62 percent of the total RMG exports, respectively.

The source stressed that the key reason for this drop is the slowdown in economy, leading to downfall of banks in the two markets.

Official explained, “Earlier while placing orders we used to get payment instantly, but now we have to wait for 30-40 days for getting full payment.”

Experts say that retail sale in the US and EU has shrunk considerably in past few months. If the purchasing power of the consumers in these markets falls, it is sure to adversely affect RMG exports of countries like Bangladesh.

Insiders say that companies in the US and EU are placing orders as per the requirements. There's a hand-to-mouth sentiment in the global market.

Fibre2fashion News Desk - India