Consumers' spending on food and allied products declined in January. The business circles attributed the decline to the ongoing political turmoil.
Many of the food producers said consumer spending now remains at the subsistence level only. They hardly take foods outside their homes due to the present tense situation of the country. This has led to fall in sales.
Consumption remains to be the largest chunk of the Gross Domestic Product (GDP) with more than 80 per cent share of the economy.
Many said transportation of goods is the biggest challenge under the ongoing situation. They said on an average 15 vehicles carrying food products, owned by the leading food producers, were set on fire during the period.
Abul Kalam, managing director of TK Group, a food and industrial conglomerate, told the FE that retail sales that highlighted consumer spending had been declining since he political trouble began.
He said sales of all food products stretching from atta to edible oil recorded substantial decline last month.
"I cannot quantify the volume of the sales that dropped last month but it is true that a significant drop in retail sales had taken place", the managing director of the TK Group, a group with an annual turnover of around Tk 100 billion, said.
Mr Kalam said trucks and covered vans carrying food products were attacked in many places and many were burnt to ashes.
"Our vehicles carrying cement also came under attack," Mr Kalam said.
Harun-Ur-Rashid, managing director of the Globe Group, a pharmacy-to-beverage company, said their sales also fell significantly last month.
"The sales of carbonated drinks (Tiger brands) have fallen significantly. This was not for winter season, but it is due to blockade and hartals," Mr. Harun said.
Mr Harun said he has ordered a slowdown in production following the ongoing poor sales.
"We've limited storage facility for soft drinks. For this reason, production both in Noakhali and Narayanganj factories have been slowed down," Mr Harun said.
Kamruzzaman Kamal, director (marketing) of the Pran-RFL Group told the FE that some 21 vehicles owned by his group were set on fire in January affecting distribution of food products.
"On Tuesday, another vehicle came under attack," the Pran official said.
Pran-RFL Group produces more than 600 consumer products with annual sales worth Tk 70 billion.
He said: "We're getting worse picture every day in terms of orders for products from our sales people," Mr Kamal said.
He said consumers are not consuming food products these days in usual quantities.
Similar pictures were given by the sales high-ups of the Meghna Group of Industries, Akij Group and City Group of Industries.
Alhaj Sher Mohammed, president of the Bangladesh Sugar Merchant Association also gave similar views.
Shafiqur Rahman Bhuiyan, president of the Bangladesh Auto- Biscuit and Bread Manufacturers Association said the sales fell amid transportation crisis.
jasimharoon@yahoo.com
