Published on 12:00 AM, January 18, 2021

Moulvibazar’s perfume business faces setback amid pandemic

The traditional perfume industry of Moulvibazar based on extractions from Agar wood has come to a standstill due to the Covid-19’s fallouts. With almost zero sales, a number of major perfume factories in Sujanagar of Barlekha have had to limit their activities. Photo; Mintu Deshwara

The traditional perfume industry of Moulvibazar has come to a standstill due to the Covid-19's fallouts. With almost zero sales, a number of major perfume factories in Sujanagar of Barlekha have had to limit their activities.

However, smaller factories have outright shut down and as a result, many workers involved in this industry have lost their jobs while the traders are also in trouble.

When this correspondent visited Sujanagar, Adib Majid, director of Amena & Fatema Agar Wood & Perfume, was seen observing four workers finishing a fragrant agarwood product. In his words, the crisis of the agar-perfume industry has come to the fore.

The production of Agar-atar is mainly a Middle Eastern business, according to Majid.

"But I sent very little last year as the demand had been reduced by as much as 25 per cent," he said.

"It is also uncertain when the situation will return to normal. I have unsold products worth around Tk 7-8 lakh. I stopped the production as it is still left unsold. So, workers will have to be paid the cost of production but if it is not sold, the loss will be multiplied."

"In my factory, there were 10-12 people who used to do agar wood finishing work. Big traders are at a higher loss as many of them have unsold agar-atar worth crores of taka," he added.

Abdul Kuddus, director of Sujanagar Agor-Ator Company, said the demand for the product was increasing day by day in the country as well as in the world market.

Agar-Atar is exported to several destinations, including Saudi Arabia, Qatar, Kuwait, Bahrain, Malaysia, Oman and Yemen.

Bangladeshis have several agar-perfume factories in Kuwait, Saudi Arabia, Thailand, Malaysia and Dubai in the UAE, the raw materials for which are sent from Moulvibazar.

"My agar perfume has not been sold for a few months due to which, I have not been able to sell agar-atar worth around Tk 2 crore yet," he said.

"I would have benefited if I could sell these. Now I am not able to pay the workers properly. That is why I have reduced the number of workers," Kuddus added.

Photo: Mintu Deshwara

Bakul Ahmed, vice-president of the Agor-Ator Manufacturers and Exporters Association in Barlekha, said those who used to trade in agar perfume with loans have been unable to make repayments.

"So how will they run their business? At present we are very irregular," Ahmed said.

According to local sources, at least 20,000 people of Moulvibazar are directly associated with the Agar-Atar business.

According to the forest department, there are 176 registered factories but the actual number is more than 250.

Traders have around Tk 200 crore worth of perfume unsold due to the reduced demand amid the ongoing coronavirus pandemic, according to data from the Bangladesh Agar and Perfume Manufacturers and Importers Association.

In 2019, 7,000 litres of perfume were sent abroad from the district through luggage routes. The average price per liter is around Tk 6 lakh with a total market value of about Tk 420 crore.

Meanwhile, agar wood has a market value of about Tk 200 crore. Agar-atar is made more or less throughout the year, however, the export season starts from January.

Ansarul Haque, president of the Bangladesh Agar and Perfume Manufacturers and Importers Association, said an estimated 7,000 liters of perfume and 10,000 kilogrammes of agar wood were exported every year.

In 2019, Haque exported around 2,500 liters of perfume but not much Agar could be exported due to the coronavirus outbreak.

"Agar sales will increase, especially if flight facilities with the Middle East and other countries become normal," he said.

Photo: Mintu Deshwara

Yusuf Mia, a worker at a perfume factory in Sujanagar, said thousands of workers in the area have become unemployed and were living inhumane lives due to the lack of orders.

A factory used to employ around 250 people every day but now, there is a quiet silence throughout the facility, Mia said.

Al Imran Shamim, Barlekha upazila nirbahi officer, said the problems faced by traders amid the ongoing pandemic has been reported to the higher authorities.

Moulvibazar Deputy Commissioner Mir Nahid Ahsan said a committee has already been formed, headed by the additional deputy commissioner (general), to save the industry and traders from losses.

The committee will take the necessary steps to provide financial assistance to victims. Besides, a team led by a joint secretary of the ministry has already visited the area, he said.