Around 250 garment factories of apparel industry, one of the main sources of earning foreign currency in the country, faced closure for different causes, including lack of order from buyers, in last five years in Chittagong. Sources in Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the apex body of Readymade Garment (RMG) traders, blamed the conditions of Accord and Alliance, infrastructural problem and price hike of gas and power for the situation. Increase in expenses due to air shipment and enhancement of wage in two phases over last five years are also held responsible for the situation.The sources informed that there were some 716 small and large garment factories in Chittagong five years back.But, now only around 400 apparel factories are on operation while 66 are working on sub-contract basis. Of them, 250 factories have been exporting and importing directly, said the sources. The situation is resulting in reduction of export growth compared to previous achievements, they said.With reduced number of the apparel factory, the amount of export from Chittagong also declined.The export from Chittagong from the sector was 14.5 percent in 2014 while 13.65 percent in 2015 and 13.3 in 2016, said the sources.They said many garment factory owners were compelled to shut their industry after failing to survive in the competitive market due to increase in the expenditure for gas and power price hike. Failing to comply with the conditions of Accord and Alliance, the organisations working on safety and other issues of this sector, was also one of the reasons of shutting the factories.When contacted, BGMEA First Vice-President Moinuddin Ahmed Mintu told the daily sun that non availability of export order from the buyers for long is one of the main reasons for shutting around 250 apparel factories in Chittagong.A total of 716 garment industries in Chittagong contributed some 40 percent of the total export of this sector. But, due to reduction of the operational factories, the contribution has now stood at only around 12 percent, he said. ‘Lack of infrastructural facility causes the garment industries in Chittagong to lag behind. Now it requires some 20,000 square feet space and around Tk 7 crore to Tk 8 crore for developing a standard garment factory,” he informed.He said political unrest in 2014 and 2015, collapse of Rana Plaza that claimed over 1,000 lives in Savar in 2013 and the brutal attack at Holy Artisan Bakery in the capital’s Gulshan area killing a number of foreigners in July in 2016 have been appeared as major factors for reluctance of buyers for placing order in Bangladeshi factories.Replying to a query, the first vice-president said that this industry has been passing a critical moment compared to previous periods. “Production cost was increased by 15 to 20 percent in last two years for different reasons, including price hike of gas and power,” said Moinuddin.“The increased expenditures also force us to increase price of products which ultimately impacts on markets,” he observed. He said achieving $50 billion export from this sector by 2021 will not be impossible if the government and authorities concerned extend cooperation for boosting this sector.The leader called upon government and policymakers not to hike prices of power, gas and fuel further for the sake of the industry.He also sought intervention of Prime Minister Sheikh Hasina so that apparel industry can play significant role in fulfilling vision 2021.Mentionable, to expand the industry, BGMEA is going to develop the first ever ‘Apparel Zone’ on a 10.36 acres land of Chittagong City Corporation in the city’s Kalurghat area.It will be a green zone of apparel sector for developing compliant factories following all rules and recommendations of different organisations, including Accord and Alliance, power and fire service departments. Employment for some 30,000 workers will be created through establishing the apparel zone that would also play significant role in reviving the fading glory of garments sector in Chittagong.Meanwhile, BGMEA has already developed five six-storey dormitory buildings for female garment workers in the city’s Saltgola crossing. The dormitories will accommodate some 4,000 workers.
