The second wave of corona infections is well underway in Europe and the United States. In the meantime, several countries have issued lockdowns. That is why the suspension of the ongoing purchase of readymade garments has also started coming. Foreign brands and buyers have reduced the number of new orders.
A-country entrepreneurs in the garment industry say world-renowned brand H&M last week e-mailed several of their suppliers temporarily suspending orders. Similarly, C&A, Aldi, Inditex have given temporary suspension on the export of ongoing purchases. Even then, the entrepreneurs are expecting that the situation will not be as dire as the first push of Corona.
In March, the government announced an incentive package of Tk 5,000 crore to pay wages to export-oriented workers after the owners panicked over the cancellation and suspension of garment purchases due to corona. Later the size of the fund was increased. From that fund, about 1,800 factory owners have taken loans and paid four months’ wages.
According to BGMEA, during the first wave of Corona, the purchase order for garment exports worth 3.17 billion was initially canceled and suspended. However, the group of garment owners has not yet calculated how many crores of dollars worth of purchases have been canceled and suspended in the second wave of Corona.
