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Flood-hit weavers cry for loans

STAR BUSINESS REPORT
An employer cannot think of losing skilled weavers working with him for so long. But Goura Babu Singha is not sure whether he will be able to retain some 400 weavers at his factory, which is yet to resume production in full swing following the devastating floods.
Singha, a seasoned handloom entrepreneur of Adampur village at Kamalganj upazila in Moulvibazar who took over his father's business some 10 years back, said he has to pay Tk 50 a day to each weaver, although the factory remains almost idle for a month.
"I am in a dilemma. Fate of my business and 400 workers hangs in the balance following the deluge that left most of the handlooms inoperative. We, the flood-hit weavers, badly need loans to re-start our business," said 50-year-old Singha, the proprietor of Moulvibazar-based Munipuri Handicrafts Ltd.
"The main problem of flood-affected weavers and other cottage industry people is that they do not have enough cash required to restore factories and buy raw materials," he said on the sidelines of
month-long small and cottage industries fair being held at PWD Ground on Manik Mia Avenue in Dhaka.
"A small loan facility can be a great help for the flood-affected weavers in Sylhet region to re-start their machines. But time is running fast," he added.
"Earlier, weavers used to get loan facility under the Special Credit Programme of Bangladesh Small and Cottage Industries Corporation (BSCIC). But it does not exist now. Irregularities in loan disbursement from Bangladesh Handloom Board also deprive real weavers," Singha said.
According to National Association of Small and Cottage Industries of Bangladesh (NASCIB), over five lakh weavers in different parts of the country especially in Sylhet, Tangail, Sirajganj, Narayanganj and Narsingdi are finding it hard to re-start production in full swing after the deluge due to fund shortage.
NASCIB President Mirza Nurul Ghani Shovon said the government has not rescheduled loans of weavers let alone giving new loans after the floods. "Everybody is unanimous that small and cottage industries bear the brunt of floods but surprisingly there is no effort for the rehabilitation of the sector," he said. He said the sector
needs Tk 500 crore immediate soft loans for recovery.
Handlooms, the second-largest employment sector of the country after agriculture, contribute 63 percent to the country's total cloth production.
Meanwhile, Bangladesh Handloom Board is going to take some efforts to help the sector recover from the floods. The board has sought Tk 25 crore from government to disburse among weavers.
Mohammad Jahangir, project co-ordinator of the board, said, "If we get the fund over 83,000 affected weavers will get Tk 3,000 loan each."
When contacted a high official of BSCIC said after assessing flood losses incurred by small and cottage industries the corporation will seek government funds for rehabilitation. BSCIC may activate the especial credit programme. BSCIC will also rejuvenate loan distribution under self-employment project that provides loan between Tk 10,000 and Tk 5 lakh, the official added.