Fabric sales still slow ahead of Eid

Textile makers in Bangladesh are witnessing slow sales ahead of Eid-ul-Fitr due to factors including a drop in demand for women's salwar-kameez amidst a high living cost and a lack of interest among the affluent class to donate clothes as Zakat to avoid hassle.

The wealthy typically donate saris and lungi as zakat, a form of alms offered out of religious obligation, propelling their sales during Ramadan.

However, the tradition has changed in recent years as many people now prefer to hand out cash in order to save time and avoid hassles linked with distribution.

The wide adoption of mobile financial services (MFS) has brought about massive convenience to users as they can seamlessly transfer donations to beneficiaries whereas collecting and distributing clothes is slow and cumbersome.

MFS accounts totalled 21.92 crore in January in a country where the population size is about 16.98 crore.

Additionally, 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.

"These factors have badly impacted fabric sales ahead of Eid not only this year but also the last three," said Rashidul Hasan Rinto, proprietor of Chishtia Sizing Mills in Narsingdi.

Baburhaat, a major hub for textile and garment items in Narsingdi, would register weekly sales of about Tk 2,000 crore during Ramadan in previous years. Now, it is difficult to rake up sales of Tk 1,500 throughout the month, he added.

Abdullah Al Mamun, managing director of Abed Textile Processing Mills, said the market seems unpredictable considering the country's economic condition.

"We are observing the market condition as the real picture will only emerge after a few days."

He is, however, hopeful for better business this time around compared to last year.

Khorshed Alam, chairman of Little Group that runs seven textile mills, said the amount of goods sold centring Eid-ul-Fitr has decreased by 25-30 percent year-on-year.

Traders at Baburhaat, Madhabdi and Gausia in Narsingdi allege that people's buying capacity has considerably decreased due to price hikes for essentials.

A large portion of the buyers of local fabrics are middle-class and lower-middle-class people. So, they are now giving more priority to buying essential products.

"That's why sales are down," said Alam, who recently visited the three markets.

Textile millers usually see sales 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, according to Alam, also the chairman of the standing committee for local textiles and fabrics of the Bangladesh Textile Mills Association.

Amran Hossain Khan, chairman of Modina Dyeing Printing and Processing Industries Ltd in Munshiganj, said the number of orders received ahead of Eid this year is 25 percent less compared to last year.

"Orders have decreased due to the reduced purchasing power of people."

Khan also pointed out that the lack of uninterrupted gas supply at factories is preventing them from running in full swing, thereby negatively impacting the business.