Two garment factories caught fire in Asadganj area of the port city Sunday in which huge fabrics, yarns and readymade garments burnt to ashes.
Firefighters said the fire first broke out in Angelic Apparels Ltd from an electronic short circuit at about 1pm and then raged through adjacent Apollo Garments housed in the same building.
Angelic Apparels at Asadganj in Chittagong was gutted in a devastating fire on Sunday. FocusBangla
Prices of yarn declined in the local market, helped by falling cotton prices in the international market, manufacturers said.
Industry insiders believe the volume of garment production will increase thanks to the yarn price decline. They said they would be more competitive in global apparel trading.
Bangladesh exports soared 42 percent in September from a year ago, hitting $1.478 billion on the back of rises in sales of clothing and other textiles, Export Promotion Bureau data showed on Wednesday.
Export earnings in July-September, the first quarter of the 2008/09 financial year, also grew 42 percent to $4.38 billion, the data showed.
Bangladesh's ready-made garments (RMG) sector, it seems, is stuck between two walls made of glass. On one hand, exporters operate under intense competition, pushing selling prices to rock bottom. On the other hand, international buyers are playing ace after ace, as they demand rebates or discounts on shipped products.
The export promotion boss yesterday ruled out any fallout from the global credit crunch on Bangladesh's garment exports after two main items, woven and knitwear, registered 44.66 percent growth in the first quarter of the current fiscal year.
RMG designers are busy at a garment factory in Dhaka. Photo: STAR
The garment sector is unlikely to take a hit from the global financial meltdown as exporters sell low-end products with demand expected to be elastic, according to Bangladesh Bank.
The central bank made the observation at its management board meeting early this month.
But the International Monitory Fund (IMF) has predicted that the growth of the RMG sector may slide to a single digit.
The two main economic pillars of the world, the US and the EU, face turbulent times due to the ongoing global financial turmoil. Countries in the rest of the world scratch their heads, puzzled and confused, as they had based their budgets and business plans, targeting to export products to those destinations.
Manufacturers around the world are busy trying to distinguish their products from the rest, innovating their formulas and theories to make the cut. Most of the tested formulas have failed so far, pushing powerhouses into deep waters.
Visitors browse clothes at Batexpo at Sonargaon Hotel. Photo: STAR
