Bangladesh, which is dependent on China for about 60 per cent of its raw material requirements for export sectors, is in for some tough times even if the country’s garment makers are apprehending further increase in raw material prices as the ongoing gas and electricity crisis there (in China) is expected to continue for at least four more months with the advent of winter when consumption peaks even as energy shortages have already halved China’s factory outputs thereby forcing suppliers to hike product prices by up to a 100 per cent.
Media reports maintained this citing industry insiders.
Raw material prices have doubled over a month, and shipments that would take a week now take more than a month, reportedly, underlined Chief Executive Officer at Fatullah Apparels Limited, Fazlee Shamim Ehsan speaking to the media even as Director (Operation) at Square Denims Ltd., Sayeed Ahmad Chowdhury on his part, reportedly, added “…we still have to procure at very high prices to maintain export commitments.”
Already challenged with increasing global freight charges and recent spike in domestic transportation charges subsequent to fuel price hike, the latest cost burden would take a further toll on the Bangladesh entrepreneurs including the garment manufacturers.