Supply chained up, demand punctured

A heated climate is bad for business. It disrupts supply chains and dampens consumer spending.
That is exactly the pinch businesses face after at least five days of internet blackout, several days of continuous curfew, and a complete shutdown of offices.
Traders from fashion to food to foodstuff are witnessing sales plummeting, as low-income people are bearing the brunt of rising prices amid the nationwide unrest.
Inflation has worsened the financial situation for middle- and low-income groups, forcing them to cut back on spending, especially on food. Their further belt-tightening has impacted shopping malls, grocery stores and poultry sales.

Although the curfew has been lifted and government offices reopened, people are still reeling from the trauma of last week, when more than 200 people were killed and thousands injured.
Shop owners across Dhaka report a decline in customer numbers, while shortages of imported goods have hit the kitchen market, according to Bivor Dey, joint secretary general of Bangladesh Dokan Malik Samity.
Mohammad Hassan, owner of Royal General Store in Kawran Bazar, said importers of some goods cannot supply them on time due to internet disruptions at customs ports.
"Supply of locally produced goods has remained steady, but commodities dependent on imports have become unavailable due to supply chain disruptions," he said.
Broiler chicken seller Md Omar Faruk at Kawran Bazar said his daily sales have halved due to restaurant closures. "I used to sell more than 1,000 chickens a day, but that has fallen dramatically," he said.
Economist Dr Zahid Hussain said the government needs to prioritise support for businesses through careful assessment. Safety nets for low-income people may need to be expanded and measures like waiving interest payments and port charges could be considered.
"There are always those who try to manipulate prices or create artificial shortages," said Rajib Ahmed, a private sector worker in Dhaka's Uttara. "The usual market mechanisms have been disrupted as the government's focus has shifted to calm the protest."
Ramiz Mia, a vegetable seller in Dhaka's Mohammadpur, said that perishable goods like fresh vegetables have been damaged due to transportation problems, leading to price increases.
"We have to pay more to farmers and can only make a small profit, despite accusations of price gouging," he said.
E-commerce businesses have reported losses of Tk 14 billion in the past ten days due to the internet shutdown and Facebook blockade. Although the government claims to have restored social media access, many users reported disruptions on Thursday last week.
Many e-commerce firms rely on imported goods from China, India and South Korea, which are now stuck in ports. The supply chain disruptions have also affected raw material imports for the apparel industry.
Syed Nazrul Islam, first vice president of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA), said customs clearance has been hampered for a week due to the unrest, disrupting supply chains.
"The government has agreed to waive port demurrage charges for those seven days following a request from exporters, but we are still awaiting responses from freight forwarders and shipping lines," said Mr Islam.
Exporters have also called on the Bangladesh Bank to waive interest on loan repayments during this time, he added.
The Foreign Investors' Chamber of Commerce & Industry (FICCI) recently estimated a loss of US$10 billion due to the ongoing unrest triggered by the quota system in public job recruitment.
A decline in credit card and mobile financial services transactions has also impacted businesses.
Shamsuddin Haider Dalim, head of Corporate Communications at mobile financial service bKash, said customers experienced temporary disruptions in using the bKash app due to recent internet outages and slow speeds.
"During this time, the bKash USSD channel *247# remained operational, allowing customers to send money, recharge mobile phones, deposit and withdraw cash and pay bills," he said.
"Customers can now use all bKash services through the app and USSD channel as before, following the restoration of internet services," he added.
[email protected]