Business bodies seek urgent govt support for trade rescue

Leading trade bodies urge the government for policy support and a financial package for businesses hit by rain-fed cataclysmic flooding that has disrupted operations at Chattagram seaport and on its connected road and rail networks.
In a joint letter sent to Shipping Minister Shaikh Robiul Alam on Sunday, the business organisations have warned that prolonged disruptions could severely affect industrial production, export, employment and the country's supply chain.
Heads of the Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, Bangladesh Textile Mills Association, and Chittagong Chamber of Commerce and Industry signed the SOS letter.
They have also called for an independent assessment of damage to goods stored at the port and adequate compensation for affected businesses.
According to the letter, flooding and waterlogging amid torrential rain have hampered cargo handling, storage and transportation at the port, putting imported cotton, yarn, fabrics, industrial raw materials, chemicals, packaging materials, food products and other moisture-sensitive goods at risk of damage.
Moreover, delays in shipping ready-made garments, home textiles, leather goods, pharmaceuticals, agricultural products and other export items have increased the risk of order cancellations, price discounts, late-delivery penalties and costly air shipments.
The trade bodies mention that prolonged congestion has forced importers and exporters to bear additional demurrage, detention, port rent, storage, yard and other logistics charges.
Disruptions in raw-material supply are also putting pressure on factory production, cash flow, wage payments, bank-loan repayment and other financial obligations, with small, cottage and medium enterprises likely to be hardest hit.
The letter also notes that heavy rainfall since July 5 has inundated several yards at Chattagram port and nearby private container depots, triggering allegations of damage to import and export cargoes.
It says the Chattagram Port Authority's July 10 notice rejecting liability for compensation has created widespread concern among businesses.
"If the losses resulted from inadequate infrastructure, poor drainage or management failures, the authorities should conduct an independent investigation, determine responsibility and ensure fair compensation," the letter reads.
It also warns that failure to do so could undermine users' confidence in the country's main seaport.
The business organisations have made nine main requests to the government, including quickly restarting port, road, and rail services, creating a special group to assess losses, temporarily waiving or suspending fees for delays and storage, and expediting customs clearance for essential raw materials, food, medicines, and export cargoes.
They also ask for financial help for affected businesses, more time to pay back loans, letters of credit, shipments, and export proceeds, a delay in paying utility bills, taxes, and duties without penalties, a special fund for small and medium enterprises, and easier customs, foreign exchange, and banking processes for damaged goods that need to be destroyed, replaced, or sent back out.
The organisations also have proposed forming a high-level inter-ministerial taskforce involving relevant ministries, the National Board of Revenue, Bangladesh Bank, the Chattagram Port Authority and business representatives to coordinate the response.
For the longer term, they have recommended improving drainage and flood management around the port and adjoining industrial areas, upgrading container yards and logistics facilities, and strengthening disaster-resilient transport infrastructure.
Also made is a call for the formulation of a National Trade Continuity Framework to ensure uninterrupted trade and supply chains during future natural disasters.
The joint letter is signed by BGMEA president Mahmud Hasan Khan, BKMEA president Mohammad Hatem, BTMA president Showkat Aziz Russell and CCCI president Mohammad Amirul Haque.

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