Factory Closure: FBCCI warns of supply disruption
The Federation of Bangladesh Chambers of Commerce and Industry said if factories processing food and other essentials remain shut amid Covid restrictions, consumers will ultimately have to suffer due to price hike resulting from a disruption in the supply chain.
It also says exporters will not be able to ship goods timely if production is suspended, leading to cancellation of work orders.
If factories are closed for 18-20 days, there is a possibility that a good number of work orders centring late summer, Christmas and winter might get cancelled, FBCCI President Md Jashim Uddin said in a press statement yesterday.
If one month's export schedule is disrupted, it is going to affect the schedule for the next six months, he said, urging the government to keep the factories out of the purview of the restrictions.
The government has recently enforced a 14-day nationwide lockdown to stop surges in Covid-19 cases and deaths. It had enforced restrictions on the movement of people and vehicles on multiple occasions in the past.
The FBCCI president said priority must be given on protecting lives, but people will suffer if the production of food and other essentials remains grounded.
Earlier, garment, textile, terrycloth and garment accessories makers sent a letter to Prime Minister Sheikh Hasina demanding that the garment factories be kept open during the lockdown.
In a joint statement, leaders of trade bodies in the garment and textile sectors said Bangladesh would lose $119.38 million per day only in garment exports if the factories were shut.
On the first 14 days of the current fiscal year, the earning from the garment sector is estimated at $1.68 billion, they said in the statement.
If factories are kept shut for nearly three weeks, the garment sector will lose a lot of work orders and a few billions of dollars, the letter also said.
International retailers and brands have been coming with a handful of work orders in Bangladesh as the clothing retail outlets have already been opened in Europe and the USA, they said.
Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association, AKM Salim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association, Mohammad Ali Khokon, president of Bangladesh Textile Mills Association, Shahadat Hossain Sohel, chairman of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, and Abdul Kader Khan, president of Bangladesh Garment Accessories and Manufacturers and Exporters Association, signed the joint letter.
FBCCI President Jashim said leaders of BGMEA, BKMEA, BTMA, Terry Towel Association, Packaging Association and Bangladesh Tanners Association requested the FBCCI to take initiatives to ensure that factories remain open during lockdowns.
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