Diesel price hike takes toll on garment, fish exporters
Fakhrul Alam | Friday, 11 July 2008
CHITTAGONG, July 10: Following rise in price of diesel, average production cost on alternative consumption of power in view of load-shedding in the garment factories and frozen fish exporters' factories has increased by 30 to 40 per cent.
According to concerned sources, with the price hike of the fuel, monthly expenditures of Chittagong-based 700 garment factories would increase by Tk.160 million while 14 frozen food exporters of Chittagong would have to spend Tk.5.0 million more per month in a similar manner.
While these two important export-oriented sectors of the country are already confronted with hard competition in the global markets, the recent price hike in fuel, has rather led these two vital sectors to a deplorable situation.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Chittagong region sources said, following 7 to 8 hours of power outage daily, local garment factories have become dependent on generators.
The sources further said, Chittagong-based garment industries have to spend Tk.440 million per month for buying diesel. With the rise in price of fuel oil, since July 01 last expenditures would stand to Tk. 600 million with a rise of Tk.160 million.
BGMEA sources said, it has rather become difficult to survive in the global competition as a result of the sudden rise in price of fuel oil at such an abnormal rate.
Meanwhile, the second largest export-oriented sector frozen fish processing factories, due to lack of uninterrupted power supply, may also face a very difficult situation as the price of frozen fish (shrimp) has already declined in the global market, the sources added.
According to concerned sources, with the price hike of the fuel, monthly expenditures of Chittagong-based 700 garment factories would increase by Tk.160 million while 14 frozen food exporters of Chittagong would have to spend Tk.5.0 million more per month in a similar manner.
While these two important export-oriented sectors of the country are already confronted with hard competition in the global markets, the recent price hike in fuel, has rather led these two vital sectors to a deplorable situation.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Chittagong region sources said, following 7 to 8 hours of power outage daily, local garment factories have become dependent on generators.
The sources further said, Chittagong-based garment industries have to spend Tk.440 million per month for buying diesel. With the rise in price of fuel oil, since July 01 last expenditures would stand to Tk. 600 million with a rise of Tk.160 million.
BGMEA sources said, it has rather become difficult to survive in the global competition as a result of the sudden rise in price of fuel oil at such an abnormal rate.
Meanwhile, the second largest export-oriented sector frozen fish processing factories, due to lack of uninterrupted power supply, may also face a very difficult situation as the price of frozen fish (shrimp) has already declined in the global market, the sources added.