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Production, supply chain in industries break down

Shah Alam Nur | December 22, 2013 00:00:00


The production and supply chain in most of the country's manufacturing industries have broken down due to frequent countrywide shutdowns and blockades, industry players said.

They said many industries had to cut production by 75 per cent to avoid congestion at warehouses for shortage of transports. On the other hand all the industries are facing a serious problem due to disruption in supply of raw materials because of the blockades.

According to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the business activities in the country were suspended for 36 days in the last 51 days (till the date).

 "Frequent countrywide blockades have affected the country's total manufacturing activities and supply chain," Kazi Akram Uddin Ahmed, president of FBCCI told the FE Saturday.

He said the country's production and supply chain have broken down and many industries had to cut production by 75 per cent to avoid congestion at warehouses.

The FBCCI chief said for shortage of transport they could not send products to Chittagong Sea Port or airports for shipment.  

He said many industries are also facing untold sufferings in transporting the imported raw materials and capital machineries that had been stuck up at Chittagong Sea Port for the last couple of months.

Jahangir Alamin, President of Bangladesh Textile Mills Association (BTMA) told the FE 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 the sector has been seriously affected by countrywide blockade.

He said the buyers are not confirming orders in Bangladesh fearing frequent countrywide shutdowns.

Mr Alamin also Managing Director of Fuad Spinning Mills Ltd said if the present situation continues for long it will not be possible on their part to do business smoothly and the manufacturers will become loan defaulters within a short time.

He said most of the manufacturers are now forced to cut their production as they are unable to carry raw materials from the sea ports regularly because of frequent shutdowns.

 "Production at his factory fell by around 80 per cent in recent time for shortage of raw materials".

Abdus Salam Murshedy, Managing Director of Envoy Group told the FE that his garment goods manufacturing units could be shut any time.

He said a truck carrying exportable items of his factories was torched at Sitakundo in Chittagong recently by pro-strike activists. "So the transport companies are reluctant to carry my goods," he added.

Mr Murshedy, also former president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), said he imported raw materials like fabric and other goods and those are now lying at the sea port due to shortage of transports.

Jashim Uddin, President of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) told this correspondent that country's plastic industry like other sectors is seriously affected due to the ongoing political turmoil coupled with the frequent shutdowns in the country.

He said the sector has to incur losses to the tune of Tk 500 million a day because of hartals and blockades. And their overall production, export and local sales have been affected severely because of the political unrest.

Rizvi Ul Kabir, Chief Operating Officer of Shinepukur Ceramics told the FE, "For frequent blockades country's ceramic industry is passing a very hard time".

He said many exportable goods of their company meant for shipment are now lying at their warehouse due to political impasse.

Anwar-Ul-Alam Chowdhury, Managing Director of Evince Group said, "Frequent countrywide shutdowns came as a big blow to my business as I cannot maintain smooth production for want of necessary raw materials."

He said in recent times many foreign buyers have been threatening to cancel their orders from Bangladesh fearing delay in delivery.

The FBCCI data show there are more than 0.9 million industrial units (factories) in the country. Of them Dhaka contributes 0.26 million and Chittagong 0.21 million of units.


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