Bangladesh has managed to retain nearly 67 per cent garment export receipts, thanks to increasing use of local raw materials.
The retention value of the exported apparel surged 36 per cent in financial year 2021-2022 from what it was a year earlier. That means Bangladesh was able to retain 66 per cent of the total garment export receipts in the financial year.
Bangladesh's apparel export earnings fell 12 per cent in the first 18 days of September 2022.This fall in export receipts has been putdown to record inflation in the sector's major destinations fuelled by the ongoing Russia-Ukraine war.In the face of reduced consumer demand, a number of retailers, including Walmart, have already cancelled some orders. Besides, some buyers are requesting exporters to delay shipments or suspend orders ready for delivery. The slowdown of apparel shipments was expected from August 2022 as most factories have been facing a fall in work orders, which is being reflected in export earnings.The fear is that it might continue till May 2023. The industry is experiencing a slowdown as retailers are stuck with too much inventory at their stores.The war-driven economic recession has badly affected clothing demand.
Some knitting factories in Bangadesh have shut down because of order shortages that have continued over two months.