Fifteen garment factories incurred loss of $3.31 million due to the country’s ongoing political instability, mainly frequent strikes, showed an assessment survey.
The political turmoil is taking heavy toll on the readymade garment sector as the entrepreneurs are incurring huge loss from order cancellations, discounts, air freight fares and vandalism, showed the survey initiated by the Bangladesh Garment Manufacturers and Exporters Association.
The BGMEA asked the factory owners on March 28 to submit the impact of recent political violence and frequent strikes on their units. It could collect data from 15 garment factories till Saturday.
Of the loss incurred by the 15 factories, $0.7 million incurred from discounts, $1.71 million from air freight fares and $0.9 million from vandalism and arson attacks during the strikes.
According to the survey, the buyers have cancelled orders worth $2.2 million in the 15 factories. Besides, products worth $7.5 million are now facing delay of shipment due to the repeated strikes.
The entrepreneurs fear that they have to face cancellation of orders more if the confrontational politics continues.
‘This is the scenario of only 15 garment units, the story of the total RMG sector is blood-curdling’, said BGMEA president Md Atiqul Islam.
This is the pick time of getting orders of spring and summer season, but international buyers are getting panicked due to the political unrest, he said.
Buyers are now confused whether they should give order to Bangladeshi factories or not, Atiqul said.
The BGMEA chief said, ‘If we fail to ensure political stability and efficient shipment, more than 30 per cent orders will be reduced by November-December this year.’
He also said global retailers would not remain unoccupied of their stores and so the orders were likely to be shifted to the neighbouring countries.
The BGMEA is going to sit with the global buyers shortly as most of the buyers have expressed their concern and shown interest to sit with the trade body over the ongoing political situation, Atiqul informed.
He urged the political parties again to find an end to violent politics for the sake of the country’s economic growth.
-With New Age input
