With a prolonged countrywide transport blockade and frequent shutdowns continuing to take their toll, 28 of the garment factories have suffered a loss of Tk 2.4 billion in a month from January 06 to February 07, a study reveals.
The 28 factories lost orders worth Tk 1.2 billion, faced discount worth Tk 120 million, spent Tk 500 million for air shipment and delayed shipment worth Tk 400 million.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) conducted the study to assess the trade losses being incurred for the countrywide blockade from January 06 to February 07.
According to apex trade-body FBCCI, the apparel sector as a whole suffered a loss of Tk 270 billion in last 35 days.
On average, the sector was incurring loss to the tune of Tk 7.94 billion a day for political turmoil.
"The countrywide blockade is taking its toll on RMG sector as losses in the industry are rising continuously. In last 34 days, 28 garment factories submitted complaints to the trade body as these factories suffered loss of more than Tk 2.4 billion during the period," Shahidullah Azim, vice-president of BGMEA, told the FE.
They received complaints from only 28 factory owners, he said, adding that there are more than 4,500 factories which are also suffering losses every day due to the blockade.
Due to shortage of transport, he said, the garment-makers incurred losses worth Tk 500 billion for expensive air shipment in last 34 days.
Mr Shahidullah informed that international business partners were cancelling their orders in Bangladesh while placing new orders in Vietnam, Indonesia, India, Myanmar, China and Pakistan.
An extraordinary general meeting (EGM) on the current political situation will take place today (Wednesday) where the factory owners will share their experiences and put forward recommendations.
Anwar-ul Alam Chowdhury, managing director of Evince Group, one of the country's leading garment, textile and fabric manufacturers, said shipment costs them only 30 cents to send one kilogramme (kg) of goods by sea freight, but the cost by airfreight reaches $ 4.15 a kg--13 times higher than sea freight.
"We are now concerned at the current countrywide blockade as the industry wants security of the factories."
Mr Chowdhury, also former president of BGMEA, said a number of US-based RMG retailers threatened to shift their orders to other countries from Bangladesh if the political instability doesn't end soon.
International business partners also cancelled their scheduled flights to Dhaka, he said. "Who wants to come here in such a volatile political situation?" he questioned.
Abdus Salam Murshedy, president of the Exporters' Association of Bangladesh, said international business partners don't like to travel here. They are visiting other countries, including Hong Kong, China, India, and Thailand, for signing business deals.
Because of the countrywide blockade, he said, they are going abroad to hold talks with foreign partners, spending thousands of dollars, to pacify them.
Jahangir Alamin, former president of BTMA, a spinners' platform, said not only garment exporters but also local fabrics producers are counting huge losses.
Textiles sector is playing a vital role as backward-linkage industry for the apparel industry, he said, adding that local textile industry largely depends on import of cotton and other materials for its production, but these materials are now lying at the port due to shortage of transport.
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