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Restive politics forces units to throttle back production

Shamsul Huda | January 25, 2015 00:00:00


Major industrial sectors are curtailing production due to stockpiling of goods, supply crunch of raw materials and disruption in distribution, compelled by the effect of blockade, trade groups said.

They said that capital and labour-intensive units are badly affected by the violent programme.

Industry leaders said, cement manufacturers have curtailed their production by more than 50 per cent to 0.6 million bags per day from the earlier 1.2 million bags, pharmaceuticals makers cut output by 40 per cent, iron and steel producers by 60 per cent and spinning and woven products by 30 per cent.

President of Bangladesh Textile Mills Association (BTMA) Tapan Chowdhury said BTMA member mills have slowed their production.

A BTMA member said their production of cotton spinning has declined by 30 per cent to 2.4 million kg per day from the earlier 3.4 million kg.

He said the annual production capacity of BTMA member mills' woven fabrics is 2,800 million metres and their yarn production capacity is 2,100 million kg.

Vice President of Bangladesh Association of Pharmaceutical Industries (BAPI) Dr Momenul Haque said the pharmaceutical companies have curtailed their production by 40 per cent.

He said if the existing turmoil continues, there would be medicine supply problems across the country as their vehicles are being attacked in several parts of the country.

He said their production has been curtailed to Tk 198 million per day from the pre-blockade period of Tk 330 million.

Abdul Quayum Miah, a member of Bangladesh Cement Manufacturers Association, said manufacturers have been forced to halve production of the key construction material.

Former president of Bangladesh Steel Mill Owners Association Mizanur Rahman Babul said output of iron and steel products has been reduced by more than 60 per cent.

He said in addition to their previous stock, the battered supply chain has worsened their situation.

Former president of BGMEA (Bangladesh Garment Manufacturers and Exporters Association) Abdus Salam Murshedy said smooth apparel production has been hampered and placement orders from the buyers are likely to drop by 15 per cent.

He said with workers' attendance being hampered and supply chain of accessories interrupted there is auto production curtailing in many garment factories.

When contacted entrepreneurs of leather, tiles, foods and some other industrial sectors said they have reduced their industrial output.

Chief Executive Officer of Pran Group Amjad Khan Chowdhury said, "We have curtailed production in some of our agro-based manufacturing units by more than 30 per cent as there is stockpiling of the finished products."

The Pran CEO said as the normal supply chain is disrupted the produced goods are not going in the market.

He said the problems in transportation have affected the supply chain, triggering troubles in heavy machinery-based industries.

Mr. Chowdhury said "Our interests rate is going up".

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