The countrywide blockade by the BNP-led political coalition began to breed a crunch in productive sectors as the long-haul transport halt substantially cut raw-material supply lines to manufacturing units, industry leaders said.
As industries began to feel the raw-material crunch and export disruption, agricultural sector also was bearing the brunt as farmers face difficulty in marketing their produce, sources said, as the blockade passed off the fifth day amid sporadic incidents of violence.  Â
"There has been a drastic fall in production recent days," said an industry-insider consulted by the FE correspondent over the consequences of the government-opposition standoff, stemming from their diametrically different stances on the January 5, 2014 general election.   Â
Entrepreneurs said they could not bring the imported raw materials to their manufacturing units due to the frequent spells of general strikes and blockades.
For the internal road-haulage disruption, imports have got stuck-up at Chittagong seaport for the last one week, causing production disruption -- in what comes as a chain effect.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) data showed presently, the country has more than 0.25 million large, medium and small manufacturing industrial units.
Production of glass and glass-products, petroleum refinery, industrial chemicals, leather products, transport equipment, tobacco, pharmaceuticals, wood products, ceramics, cement and electronic goods suffered much for shortage of raw materials, sector-players said.
"Due to countrywide blockade total communications systems have been disrupted. As a result, the manufacturing sectors are facing serious shortage of raw materials," FBCCI president Kazi Akram Uddin Ahmed told the FE.
And for the shortage of raw materials, the manufacturing units, including large, small and medium-sized industries, could not achieve more than 50 per cent capacity utilisation.
The apex trade body chief is afraid a large number of industries could shortly come to a grinding halt in production if the prevailing political environment continued.
Anwar-Ul-Alam Chowdhury, Managing Director of Evince Group, said: "Such countrywide blockade came as a big blow to my business as I cannot maintain smooth production for not having enough raw materials."
He said production in his factories had come down by around 45 per cent in the last three days because they do not have available raw materials.
Their factories' raw materials `have almost been used up and, as a result, manufacturing export-oriented garment products could stop anytime.
Mr Chowdhury, also former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said he imported raw materials like fabrics and other goods which were now waiting at the seaport for Dhaka for want of transport.
He mentioned that a truck carrying exportable items of one of his factories was torched at Sitakund in Chittagong last year by pro-strike activists. "So no transport company wants to transport goods of mine," he said.
Evince Group is one of the country's top apparel conglomerates, employing around 7,500 workers at its five industrial units, including garment and textile factories.
Secretary-General of Bangladesh Aushad Shilpa Samity Abdul Muktadir said the potential pharmaceutical sector had to count a significant volume of production loss in last one week as they are facing acute shortage of raw materials.
He said for shortage of transports they could not carry their imports as almost 95 per cent of production in the country's pharmaceutical industry depends on imported raw materials.
"Local medicine companies are struggling to manufacture many important drugs because of the shortage of raw materials," the industry leader said.
Jahangir Alamin, former president of Bangladesh Textile Mills Association (BTMA), noted that the primary textile sector, which includes spinning, weaving, printing, dyeing and finishing, plays a vital role as backward-linkage industry of woven and knitwear garments but it was being hit hard by the countrywide blockade.
He said the local textile industry depends on imported cotton and other goods for running their production but now that goods were now piled-up at port, not at factory.
According to Bangladesh Truck and Van Owners Association, in normal situation more than 70,000 trucks and covered vans move across the country every day, but during political unrest less than 5 per cent could move.
The blockade -- associated with a number of arson attacks on vehicles that defy the call for halt -- also largely hampered transport and marketing of perishables from far-flung farms in the north and southwest.     Â
shahalamnur@gmail.com
Industries begin to feel chill of blockade
Shah Alam Nur | Published: January 12, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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