The sales of the fabrics, yarn and garment meant for the Eid-ul-Fitr is still slow because of the changing behaviour in the zakat donation, smuggle in of foreign clothing items and for higher cost of living of the people.
Following such a poor sale of fabrics, yarn and garment, the millers have also witnessing a lower production of fabrics and yarn for the domestic markets.
The wholesalers in the major hubs like Madhabdi, Gawsia, Narsingdi, Baburhaat, Shekherchar and Narayangani, could sell only 50 percent of their products like sharees, lungis, three pieces for ladies and other dresses after 15 days of the Ramadan.
However, even last year, the wholesaler, millers and traders sold nearly 95 percent of their products after 15 days of Ramadan as the retailers and small millers produced their goods as early as possible to sell to the end consumers.
The local textile millers see a sale of more than Tk 35,000 crore ahead of the two Eid festivals. Of the sales, 75 percent take place ahead of Eid-ul-Fitr and remaining 25 percent sales take place ahead of Eid-ul-Azha.
But, this year, the sales dropped mainly for three reasons. For instance, the Indian and Pakistani three pieces have already entered into the Bangladeshi markets a section of unscrupulous traders bring those goods through illegal channels and supply to the major shopping malls and retailers in the local markets.
As a result, the sales and production of fabrics for three pieces for ladies dropped this year here in Bangladesh ahead of mega sales season of Eid-ul-Fitr.
Rafiqul Islam, proprietor of Tarabo based Ashrafi Textile said he could sell only 50 percent of his goods after 15 days of Ramadan whereas he sold 90 percent in the 15 days of Ramadan last year.
He produce yarn, fabrics and make clothing items of three pieces in his mill and factory. He has wholesale shops at Gawsia, Chadnichak in Dhaka and Islampur in Dhaka.
He said despite a lot of check by different government agencies, a section of traders brought three pieces from India and Pakistan for selling ahead of Eid-ul-Fitr and this kind of sales damaged the sales of local producers.
Because, many Bangladeshi customers like to buy those smuggled in garment items instead of locally made garment items even having a good price difference, he also said.
Another factor is the changing behaviour of people in donation. Previously, the affluent people of the country used to buy a lot of zakat clothing items like sharees and lungis for the poor people, especially for the village those who live in the villages.
But, in recent years, the rich people are no more interested to buy the zakat cloths in bulk quantity to avert hassles in transportation and distribution of those items to the poor people. Rather, they give the donation through financial mobile service or direct cash to the poor people.
As a result, the sale of the zakat cloths dropped in the country which also impacted badly to the production and sales of fabrics in the mills and factories across the country.
Rashidul Hasan Rinto, proprietor of Chishtia Sizing Mills in Narsingdi also said the sales did not picked up yet in the local markets. Rich people are not buying the zakat cloths in bulk quantity and the sales of yarn and fabrics ahead of Eid-ul-Fitr dropped this year.
Another important factor is that the higher cost of living this year because of high inflation. The people have adopted austerity measures to limit their expenses as inflation continues to erode their real purchasing power. Thus, many people are not buying any additional garments this year.
Bangladesh has been experiencing higher consumer prices since May 2022. It has particularly stayed above 9 percent over the past year.
Khorshed Alam, chairman of Little Group which produces yarn and fabrics for the local markets said the sales may pick up to a bit within next few days as there is another major sale time after the Eid-ul-Fitr the Pahela Baishakh.
Although the sales may pick up to a bit, but the prices of the fabrics and yarn are still low, he said adding that the millers have been producing the yarn and fabrics with paying higher gas prices and the cost of production has been going up in the mills, Alam said.
The industry insiders have been requesting the government for many years to take measures to stop the smuggling in of foreign fabrics and clothing items so that the domestic industry can survive and make good business.
Despite taking measures, a section of traders brings those items ahead and during the Ramdan and make the domestic clothing items less competitive and volatile for which the local entrepreneurs feel discouraged to invest more in the sector.
The primary textile sector has been going through a gas crisis over the last few years and many of the mills are running only at 50 percent capacity and ultimately they are losing their business.
The businessmen have been urging the government for improving the gas supply so they can go for production in full capacity.
The local textile millers have been complaining that they are losing their business because of volatile dollar exchange rate in the markets and during such a critical time the sales of the items in the domestic markets at the peak moment. As a result, they are facing double whammy in the business.
