Prices, floods take heavy toll on garment industry
Sunday, 5 August 2007
The garments sector is passing through a hard time because of soaring prices of yarn in the international market and floods in the country, the sector's leaders have said, reports bdnews24.com.
The prices of yarn have increased by up to 22 per cent pushing the prices of textiles up in the international market over the past one and a half months.
The factory owners said their production cost increased by at least 15 per cent over the period since they hugely depended on imported fabrics.
Garments workers are in hardship since raging flood waters submerged many areas around the capital. Many of their homes and roads are under water in the affected areas.
The factory owners said production was being hampered because many workers are facing trouble in coming to workplaces.
If the floods worsen in the coming days and linger, the sector will be in big trouble, the industry leaders said.
Anwarul Alam Chowdhury, president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), said Friday that the sector had long been suffering from power shortage, high interest of bank loans and many other problems.
"The production cost has increased over the past one and a half months. But we are supplying products to our buyers at the previous rate," Chowdhury told the news agency.
"The output is being hampered because many workers are not able to come to work. We don't know what will happen if the flood situation worsens."
He claimed about 450 factories were closed over the past five to six months because they could not overcome the hurdles through which the industry was passing.
Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), echoed Chowdhury.
He said the floods have already engulfed many areas in Savar, Gazipur and Narayanganj, creating hurdles for the workers.
"The forecast said the situation will worsen. Both woven and knit sectors will face tremendous problems if it happens so," he said.
The country's garments sector earns about $10 billion in exports a year, and employs about two million workers, mostly women.
The prices of yarn have increased by up to 22 per cent pushing the prices of textiles up in the international market over the past one and a half months.
The factory owners said their production cost increased by at least 15 per cent over the period since they hugely depended on imported fabrics.
Garments workers are in hardship since raging flood waters submerged many areas around the capital. Many of their homes and roads are under water in the affected areas.
The factory owners said production was being hampered because many workers are facing trouble in coming to workplaces.
If the floods worsen in the coming days and linger, the sector will be in big trouble, the industry leaders said.
Anwarul Alam Chowdhury, president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), said Friday that the sector had long been suffering from power shortage, high interest of bank loans and many other problems.
"The production cost has increased over the past one and a half months. But we are supplying products to our buyers at the previous rate," Chowdhury told the news agency.
"The output is being hampered because many workers are not able to come to work. We don't know what will happen if the flood situation worsens."
He claimed about 450 factories were closed over the past five to six months because they could not overcome the hurdles through which the industry was passing.
Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), echoed Chowdhury.
He said the floods have already engulfed many areas in Savar, Gazipur and Narayanganj, creating hurdles for the workers.
"The forecast said the situation will worsen. Both woven and knit sectors will face tremendous problems if it happens so," he said.
The country's garments sector earns about $10 billion in exports a year, and employs about two million workers, mostly women.