Commenting on the pressing situation in Bangladesh, Sudhir Sekhri, Chairman AEPC stated that, “Buyers are very concerned with the escalation of the civil unrest in Bangladesh. In the short term, fast fashion buyers have no option but to pull out their orders from Bangladesh and place them elsewhere.” Most of these orders are in man-made fabrics, purchased from buyer nominated sources in China, Korea and even Europe. Shifting these short-delivery orders using special imported fabrics to India is not viable, given India’s current import policies. Only orders in fabrics of Indian origin are expected to be shifted to Indian factories, he added.
Further Sekhri observed, “On the long term, buyers will remain skeptical of being overly dependent on Bangladesh. Even before the current turmoil in Bangladesh, buyers were already looking for capacities elsewhere, due to capacity saturation in Bangladesh. The recent turmoil will expedite their plans. Indian factories will get a piece of the cake only if they ramp up capacities. However, Buyers will continue to be hesitant to place their orders in India unless the government of India tweaks its import policies to allow greater and easier access to imported man- made fabrics, trims and accessories.”
