Readymade garments (RMG) worth Tk 42 billion (4,200 crore) have become stocklot due to the ongoing political troubles marked by frequent hartal and blockade, according to the research cell of the apparel exporters’ association. The apparel exporters missed the shipment deadlines fixed by several global business partners resulting in the buildup of the stocklots worth Tk 42 billion, according to the BGMEA (Bangladesh Garment Manufacturers and Exporters Association). “The apparel industry is seriously affected by the political turmoil and countrywide blockade”, Md Shahidullah Azim, vice president of the BGMEA, told the FE. The BNP-led 20-party alliance has been enforcing the countrywide transport blockade since January 6 last amid frequent hartals to press home their demands. He said due to the countrywide blockade the exporters could not transport their products to seaports for shipment in time. He said: “There is a timeframe when we get work orders, and if we fail to meet the schedule, then the global buyers cancel their work orders or offer discounted prices on the products”. He said according to their observation over the last 81 days of blockade RMG stocklots to the tune of more than Tk 42 billion were created as a number of foreign buyers cancelled their shipment orders. Mr Azim said the global business partners were not only cancelling their orders but also postponing scheduled visits. The developments have been taking its toll on fresh work orders. He said in last two months representatives from global buyers including Charles Vogele, G-Star Raw, Jack and Jones, Oliver, River Island, H&M, C&A, PVH and GAP of the US and EU countries cancelled their scheduled visits as they were not interested in coming here for the political turmoil. Managing Director of Eastern Apparels Ltd Nasir Uddin Chowdhury said the RMG sector is suffering as the supply chain has been disrupted due to the blockade. The backward linkage industries of the RMG sector-accessories, washing, dyeing, printing and packaging-had also been severely affected, ultimately putting an adverse effect on the sector. He said the woven industry mostly depends on import of raw materials, but during the strikes they could not import any goods from abroad. Abdus Salam Murshedy, president of Exporters’ Association of Bangladesh (EAB), said in last 81 days their shipments by sea declined by nearly 50 per cent. He said hartals and blockade were like cancer for the RMG sector as the political turmoil affected their supply chain. He said in recent times their liabilities with banks and financial institutions have only gone up as many work orders were yet to be met. He said most of the exporters send their products by sea but for the blockade and hartal they could not ship their export items. An official of Biman Bangladesh Airlines said in last 34 days more than 350,000 tonnes of goods were shipped by air, up 35 per cent in last two months.
Source: https://www.thefinancialexpress-bd.com/2015/03/29/86716
