Export earnings from the country’s accessories and packaging manufacturing sector decreased by 30 per cent in November-December and the sector incurred a loss of $205.00 million in the period due to political turmoil, manufacturers said. They said that the political unrest had disrupted business of Tk 2,000 crore, or around $250 million, in the sector from October to December and the production dropped by 40 per cent in the period.
Apparel accessory makers said that amid political instability a good number of customers cancelled their orders and shifted to other countries as they (makers) failed to make shipment in time due to supply chain disruption.
A survey on 13 accessories producing companies conducted by the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association showed that the average export of the companies decreased by 30 per cent in November and December.
According to the survey, usual average monthly export of Uniglory Paper and Packaging Ltd was $1.2 million but the company exported goods worth $0.84 million a month on average in November and December.
In December and January, Epyllion Ltd exported $0.71 million a month on average whereas usual average monthly export of the company was $1.10 million, data showed.
‘Although normalcy has been return to the political front after the [January 5] national elections, the global buyers are yet to start returning in full swing,’ Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association president Rafez Alam Chowdhury told New Age.
A few buyers have started to come back but most of the buyers are observing the situation whether the stability sustains, he said.
As backward linkage industry, a total of 1,200 accessories companies makes around 35 items including button, carton, package, elastic, drawstring, embroidery, interlining, label, padding, poly bag, sewing thread, zipper, plastic items, back board, neck board, gum tap and bar code.
The export earnings from the sector stood $4.10 billion in the financial year 2012-13.
Accessories and packaging makers earned only 15 per cent of the earnings by exporting their products directly and the remaining 85 per cent export earnings came from export of the products with other exportable items like readymade garments, frozen food and pharmaceuticals.
-With New Age input
