Bangladesh’s readymade garment exporters are worried of losing work orders with the country’s politics entering into another wave of unrest over national election.
They say international buyers usually place most of their orders in this part of the year.
“Usually, most orders come during this period. But if political unrest persists, the buyers will be concerned about security. The sector would be the loser,” BGMEA director Md Moshiul Azam Shajal told Dhaka Tribune.
Bangladesh Nationalist Party, key rival of ruling Awami League, has announced the country-wide blockade to be continued as the government completed one year into controversial January 5 election.
“Such blockade will disrupt supply chain of imported raw materials, hampering production and causing shipment delay,” said Moshiul.
BNP chief Khaled Zia called the blockade after police “confined” her at her Gulshan office from attending a protest rally in the city’s Paltan area yesterday.
“Both the ruling party and BNP should consider the country’s business in their practice of politics. The returned to a business environment in last one year of political calmness and investments started to flow in,” said Vidiya Amrit Khan, director of Desh Garments Limited.
She said the parties should do politics in a way which would discourage investment and disrupt business.
Political confrontation that the country experienced yesterday hurt production in the RMG factories.
“The RMG factories, located especially in the capital, has seen 40% decline as many workers could not attend their respective factories on Monday,” said BGMEA Vice President Shahidullah Azim.
“The buyers have started coming to Bangladesh again but this type of political chaos will make them frightened again, and the sector will suffer, orders will go to competitor countries,” he said.
It would eventually fail the country to reach its export and GDP growth targets this fiscal year, he feared.
Attendance, however, improved to some extent yesterday.
A survey conducted by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) showed the political unrest had led RMG buyers to cancel orders worth $3.6m in 21 days of December 2013.
Talking to the Dhaka Tribune, several factory owners urged the ruling party as well as other political parties to shun confrontational politics to let the economy grow at the desired rate needed for becoming a middle income country by 2021.
They said the peak of export target could be achieved subject to ensuring political stability in the country.
However, the BGMEA has decided to transport outbound RMG products to Chittagong port under police escort during the countrywide blockade to ensure timely shipment, and to bring raw materials from the port city.
The decision was taken at a meeting with Md Asaduzzaman Mia, deputy inspector general of the Highway Police, where representatives from the BGMEA and transport sector were present.
Since the RMG sector people witnessed incidents of torching vehicles and looting during the political unrest ahead of the January 5, 2014 national election, the police agreed to escort the vehicles to ensure safety of the shipping goods, said Azim.
As per the decision, factory owners will have to reach the city outskirt of Signboard area by 9 am for the first phase escort and at 9 pm for the second phase.