The country’s readymade garment sector has not incurred any big loss due to the ongoing nationwide transport blockade and general strikes, Finance Minister AMA Muhith said yesterday.
He said: “The RMG sector of the country does not face any big loss due to the ongoing agitation programmes enforced by the BNP-led 20-party alliance.”
However, he admitted that the image of the industry has been affected due to cancellation of orders and delays in shipments.
Muhith made the statement while talking to journalists after holding a meeting with the representatives of International Arbitration Centre at Finance Ministry.
President of International Chamber of Commerce Mahabub Rahmam attended the meeting along with nine members of the Bangladesh International Arbitration Centre.
The minister’s claim, however, runs counter to the claim of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
On February 11, BGMEA president Atiqul Islam said the RMG industry has incurred a loss of Tk21,711 crore due to the non-stop political unrest beginning from January 6.
The RMG sector faced the big loss due to cancellation of orders, extra-burden of air freights, delays in shipments, discounts and vandalism in the wake of the ongoing agitation programmes.
According to a BGMEA estimate, the apparel sector faced the order cancellations worth Tk10,000 crore while it had to spend additional money of over Tk918 crore for air shipments.
During the blockades, vandalism costs the exporters Tk4,395 crore while Tk750 crore for planning disruption. The sector also had to pay Tk84 crore extra as transport fees.
The sector also has lost 25% to 30% orders due to the ongoing political unrest, which would cast negative impact on the sector to achieve the export target, said Islam.
Bangladesh has to export products worth Tk18,000 crore per month to reach $27bn export target set for the current fiscal, which would not be possible if the political unrest continue further, said the RMG apex trade body boss.
The supply chain of the clothing industry at risk with an investment of Tk1,27,000 crore, already invested in the RMG sector including spinning, knitting, weaving, dying, finishing, accessories, packaging and washing.
Talking to the Dhaka Tribune yesterday, BGMEA Vice President Shahidullah Azim said: “We have specific information that over 10 buyers has canceled orders and shifted to other countries.” The impact of the ongoing political unrest will not be reflected immediately as it takes two to three months to execute an order, said Azim.
He also said the most concern is losing future work orders as the buyers are not coming here to place orders for the upcoming season, which would cause production loss. If the sector failed to bag enough orders, they have to shut units and cut jobs, he added.