Political unrest claimed to have cost accessories and packaging industry Tk2,000 crore
- A worker carries a carton of garment products ready for export at a factory warehouse in Tongi near the capital Dhaka
The backward linkage industry of readymade garment sector is estimated to have incurred a loss worth around Tk2,000 crore in last few months due to political unrest ahead of the national election held on January 5.
An internal survey conducted by Bangladesh Garment Accessories and Packaging Manufactures and Exporters Association (BGAPMEA) estimated the losses.
“Scarcity of new orders from apparel makers badly affected the accessories and packaging industry,” BGAPMEA President Rafez Alam Chowdhury told the Dhaka Tribune, claiming the loss estimate.
“Received orders could not also be supplied timely due to the political turmoil, increasing the losses.”
According to the BGAPMEA, the deemed export of packaging and accessories items in the last fiscal year would be around US$4bn, which is around 20% of the country’s total apparel exports.
The association leader said export of the accessories witnessed a sharp fall as shipments could not be made timely.
He said the overall production was badly hampered due to short supply of raw materials.
The packaging sector has also suffered huge losses like the others sectors such as pharmaceuticals, ceramics and leather, he noted.
Volatility and uncertainties, which was prevailing in the RMG sector, virtually led the linkage industry to further crises as it is directly involved with the apparel sector.
Around 50% of the orders, both from home and abroad, have been dropped as the RMG sector suffered order crises from their global buyers in last few months due to political unrest, said Syed Ziaul Haque, general manager of Uniglory Accessories Limited.
To get rid of the dull market, the RMG sector needs more orders as production of backward linkage industry depends on the vibrancy of apparel sector, he added.
He urged the government to ensure security of foreign buyers and bring stability into the business, so the buyers could visit Bangladesh and place orders.
“Currently, we don’t have sufficient orders and it would be difficult for us to meet the monthly regular expenses to maintain operation,” said Haque.
Meanwhile, the government and apparel makers as well as exporters are trying to restore confidence among the global retailers by assuring them of the political stability and sufficient security for them.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is going to hold a meeting with the global retailers on February 3 in an effort to restore confidence that eroded due to the recent political turmoil and labour unrests.
“We want to inform the global buyers that Bangladesh has rightly come back to its own track as the overall political situation has already been improved,” said Shahidullah Azim, Vice President of BGMEA.
Source: Dhaka Tribune
