A day's hartal costs garments exporters about Tk 200cr

Political turmoil in Chittagong prevents exporters from shipping their garments, creating large stockpiles and threatening the industry's existence, warns the president of the Bangladesh Garment Manufacturers and Exporters Association.

"The deadlock at the port has created tremendous problems in the garments sector, since transport and shipping have been stopped for several days," said Anisur Rahman Sinha. "We have suffered a lot in the last few years but we've always recovered at a high cost. However, the damage this time could ruin the garment industry."

Association leaders held an emergency meeting last night at a city hotel to discuss ways to resolve the situation. It is planning to hold a round table meeting with the political parties in order to resolve the dispute.

Political parties must reach a consensus on the major issues relating to the development of the people and the country. Otherwise, the ready-made garment industry might go the way of the jute industry, said Sinha.

Sinha said this is the peak period for garment exports due to celebrations, such as Christmas and New Year's Eve, and year end garment quotas in the United States and Canada.

Anisul Haq, the managing director of the Mohammadi Group, a leading ready made garment exporter, said the cost of instability is staggering.

"A one day hartal in Chittagong costs garment exporters about Tk 200 crore, while factories lose about Tk 50 crore," said Haq. "When Chittagong Port is closed during a hartal it creates a garment stockpile worth about Tk 150 crore."

Haq said at least 15 per cent of the stockpile will be sent by air, which is not cost effective. It costs less than 40 cents to send 1-kilogram of goods by ship, compared to $3 to $3.50 by air.