Bangladesh, April 2, 2020 — cybernewschronicle.com — As the coronavirus pandemic worsens, millions of workers in Bangladesh’s garment factories are being released from their respective companies without incomes. Bangladesh is considered as the world’s second largest
apparel producer next to China. Its apparel industry accounts for 80% of the
country’s exports. The country is where clothing retail giants like H&M, Marks and Spencer and Target produce
most of their goods.
Unfortunately,
several brands and retailers have been cancelling orders recently due to coronavirus-driven
lockdowns worldwide. This
leaves Bangladesh losing up to $6 billion in export revenue this financial year
and more low-wage workers losing their jobs.
“We’ve
lost more than $3 billion due to the crisis. All our orders until July have been
cancelled or suspended,” Mohammad Hatem, vice president of Bangladesh
Knitwear Manufacturers and Exporters Association (BKMEA), said. He added
that many factories in the poor nation will be closed if the cancellations
continue adding that most buyers now also refrain from placing new orders.
“Suspended
orders will eventually get cancelled. All these orders were placed for summer
and it takes three months to get these delivered.
If they are not taking
supplies now they will not take it when the summer is over,” Hatem
explained. According
to the Bangladesh Garment Manufacturer’s
Export Association (BGMEA), more than 1000 factories have reported
cancellations of around 864.17 million pieces in total. This is equivalent to a
$2.81 billion export losses.
“With so many orders cancelled and on hold and with no visibility of
any confirmed direction, we are at a complete loss at this moment,” said BGMEA
President Rubana Haq. Meanwhile,
the laid-off factory workers were left with no choice but to return to their
overcrowded homes without any resources that will help them battle the
pandemic. Prime
Minister Sheikh Hasina recently unveiled a stimulus package valued at $588
million to help Bangladesh’s biggest export sector as well as to subsidize
employees’ wages.
However, economists and businessmen said that the
amount is “not enough” to save the crucial industry and to pay all the workers
in this dire situation.
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