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Garment sector losses mounting by the day

Refayet Ullah Mirdha
Losses in the garment sector are mounting everyday for the blockade and shutdowns called by the BNP-led alliance, with 23 garment factories reporting losses of $19.02 million between January 14 and February 1.
The amount will be much bigger if the losses of all affected factories are calculated, said Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association.
So far, only 23 factories have responded to the platform's request for quotations of losses incurred for the political turmoil, ongoing since January 6.
The 23 factories had to deal with work order cancellations, discounts for shipment delays, expensive air shipment and transport fares, and vandalism in that period.
The truckers have already doubled the fares to Tk 35,000-40,000, according to the BGMEA president.
If the upheaval drags on for long, the factories will soon run out of raw materials, he said, adding that many factory owners are facing problems in bringing in goods from the port to their plants.
On the other hand, many owners are not sending goods to the port fearing arson attacks. In many places, goods-laden trucks and covered vans have already been burnt by miscreants, Islam said.
At the same time, businesses have to pay the monthly salaries to workers and bank interest rates, he said.
Furthermore, the buyers are not coming to Dhaka to negotiate their next orders; rather, they are calling the factory owners to travel to a third country like India, China, Hong Kong, Thailand and Europe for negotiations.
Islam also said businesspeople have little to do as the ball is now in the political leaders' court.
"The political leaders know how to solve the problem - we want a peaceful and business-friendly environment."
The garment sector contributes more than 80 percent to the country's exports. Last fiscal year, the sector raked in $24.50 billion.
The sector's apex body will participate in the countrywide mass rally called by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Sunday to demand a peaceful solution to the political crisis.
Representatives of 65 international retailers that source garments from Bangladeshi factories have also demanded an immediate solution to the current crisis and an uninterrupted supply chain between Dhaka and Chittagong.
The retailers, who account for 88 percent of the garment exports, expressed their concern at the regular buyers' forum meeting at the capital's Westin Hotel on Monday.
Meanwhile, Rustom Ali Khan, general secretary of Bangladesh Truck and Covered Van Owners Association, said although no major untoward incident took place on the Dhaka-Chittagong highway so far, the number of goods-laden vehicles has still declined significantly.
The exporters and importers have cut their transportation needs from the port to the factories and vice versa fearing arson attacks on vehicles. For instance, yesterday at least 5,000 trucks and covered vans sat idle.