Bangladesh’s garment manufacturers and exporters yesterday said the industry is in a deep trouble again due to latest spate of political unrest.
The pain had no sooner come than fading away effect of Rana Plaza tragedy and political unrest in 2013.
“The blockade that began on January 4 has already wiped off Tk4,50 crore of readymade garment sector,” Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told a press briefing in Dhaka yesterday.
The trade body urged the political parties to exempt RMG industry and its forward and backward linkage industries from all kinds of political programme so the supply chain remains smooth.
“The garment industry, described as lifeline of the economy, is almost on the verge of collapse due to political instability,” said Islam.
He said: “We, the business people, won’t request any more for reconciliation among political parties as our previous experience was not sweet.”
“But if necessary we can meet BNP Chairperson Khaleda Zia for calling off blockade for the interest of the country’s economy and people as well.”
The political stalemate has hit the country again on one year completion of controversial January 5 election which brought ruling Awami League into power again with its main rival BNP boycotting.
Damage in the apparel industry is also going to take a grave shape as buyers have already threatened to withdraw orders in the wake of political chaos.
“When we are assuring the buyers by saying that we are back to business, they (buyers) are saying you (local exporters) are again back to the pavilion. This message (from buyers) bodes ill for more than $24bn industry,” said BGMEA president.
He said the garment makers, who account for 80% of the country’s $27.3bn annual exports, fear the worst since a prolonged blockade could prompt Western retailers to divert orders to other nations.
Recalling 2013 political unrest when RMG exporters were forced to deliver goods through air shipment by spending additional Tk5,500 crore and selling products in discount of Tk900 crore, Atiqul Islam said the industry would continue to suffer losses unless political conflicts are resolved.
“The industry produces about Tk430 core apparel goods per day. If the strike or blockade hampers 50% of those products, the production is hampered by at least Tk215 crore,” he said.
Referring to a recent apparel summit in Dhaka, he said the buyers had promised to give orders to live up Bangladesh’s RMG export target of $50bn by 2021.
“But this will never come true, if such political unrest continues.”
Already, the political unrest has cast negative impact on garment makers, as the number of BGMEA members came down to 4,222 from 5,876 and sick industry list becomes longer to 439 from 279.
“If the existing industry falls sick, who will take the responsibility?” he questioned.
A non-stop transport blockade organised by the BNP chief Khaleda Zia is taking a huge toll on all sectors with the vital garment industry being hit hard.
Apex trade body FBCCI said the transport sector alone loses Tk200 crore a day during the current blockade. At least 200,000 buses and lorries are now out streets fearing attacks.
At least 200 buses, lorries and cars have been torched while hundreds more damaged. The train schedules have also gone haywire after several major services were derailed, leaving at least 50 people injured.
The government is providing guarded security to ensure the movement of buses and lorries carrying products for shipment.
Bangladesh is the world’s second largest garment exporter after China. The sector provides jobs for 4m people, mostly women, and has spurred economic growth to over 6% a year in the last decade.