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Purchase orders ‘falling’, despite record, worried apparel exporters


However, many industrial owners and businessmen were surprised to see such data of export earnings. Now they are talking about the fear of negative growth in January due to reduced purchase orders.

President of BGMEA Farooq Hasan told bdnews24.com that although the statistics of November and December show a good situation, he cannot think that it will be the same in January.

“Because the order we get, the shipment is after 3/4 months. That’s why we were saying four months ago that orders have slowed down, the impact will start from January.”

The garment trader also points to the lack of congestion at the port as a sign of reduced orders and exports.

He said, “Now the jetties of Chittagong port are empty. There is no cargo congestion at the port. But it carries a bad omen. Earlier, the ship used to arrive at the port and stay for 5/7 days. But that is not the case now. The ship leaves on the same day it arrives due to shortage of goods. That is why there are no ships in the jetty.”

Farooq Hasan does not have any specific statistics about how much the purchase order has decreased. However, he says from the idea, the purchase order has decreased by 30 percent on average.

“Many are down 40 percent, many are down maybe 15 percent….”

Managing Director of Giant Group Farooq Hasan also gave an explanation of how the export revenue was recorded in December despite the decrease in purchase orders.

He said, “Lately we are developing some high value products. That’s why the value judgment may not be understood. But the quantity of the product has already decreased. The prices of raw materials, especially cotton, have increased in the last six months. As a result of the increase in the price of raw materials, the price of products has also increased. That is why a large amount has been seen in the number of money.

“Though there was a record export in November-December, there was no growth in the quantity or number of products, the growth was in terms of rupees. This is due to increase in the price of yarn, cotton.”

Mohammad Hatem, Executive President of BKMEA, another association of exporters, says that the 5.37 billion dollars worth of goods exported in December is the contribution of September-October.

He told bdnews24.com, “Many buyers halted their shipments in September and October due to the war and recession in Europe. Because of that, there was a larger than expected negative growth in those two months. Some of the shipments that were stopped in those two months were received by the buyers in November and December.”

Kazi Iftekhar Hossain of Bangladesh Garments Buying House Association, however, thinks that although the purchase orders of the clothing sector have decreased slightly, it has not reached an alarming level.

“Because in the last few months, factories were subcontracting work in addition to their own units. Now the sub contract may be closed. Also, even if the purchase order is slightly reduced, it will be fixed soon.



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