EU buyers putting orders on hold amid fresh lockdowns

Several readymade garment (RMG) buyers in the European Union (EU) have informed their Bangladeshi suppliers that they will not comment on their existing and new orders until 10 January because of reimposition of strict lockdowns in some countries from Wednesday (today).

Because of the stringent lockdowns, Bangladesh's RMG suppliers will face a big uncertainty because lockdowns usually defer payments and orders are also cancelled or halted.      

Classic Group Chairman Shahidullah Azim said he sent a consignment to Germany on Tuesday but there is uncertainty involved about delivery.

"When lockdowns are imposed, buyers delay payments and stop placing orders. This affects us for at least the next two to three months," he said.  

Germany, the biggest market of Bangladeshi RMG products in Europe, will be under a national lockdown over Christmas amid rising cases of Covid-19.

Under new measures which will last from 16 December to 10 January, schools and non-essential shops across the country will remain closed.

The Netherlands entered a tough second lockdown for at least five weeks on Tuesday.  

Several suppliers said on Tuesday night that buyers had emailed them, saying they have lots of unanswered emails due to more strict lockdown restrictions and are discussing with lots of organisations how to overcome the current situation.

They also wrote that they had cancelled meetings and changed agenda.

A buyer said they had completely stopped purchase at this moment as they do not see any possibilities to sell existing goods.

Another buyer wrote to their supplier, saying they have all the designs and also selected styles for purchase for production in March and April, but because of the uncertainty caused by the new lockdowns, they have halted those orders until the situation improves.