Fresh lockdown: Exporters to face order cancellation

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Al Amin :
The businesses have feared cancellation of export orders due to delay in shipment during the upcoming lockdown.
A 14-day fresh strict lockdown is going to be started from July 23 to curb infections of the Covid-19.
The exporters said the fresh imposition of the countrywide lockdown without any concrete plan or ignoring the recommendations of the businesses will bring disaster in the country’s export sector.
They said the private sector contributes around 82 per cent to the country’s economy. If the activities of the private sector are completely stopped during the lockdown, the country’s economy may face severe damage, they added. The country’s readymade garment (RMG) sector, which contributes around 84 per cent of the export earnings, will suffer most due to the halt in factory production during the time.
“Now is the pick time for the RMG sector. There are lots of orders from USA and European countries. But, if we fail to place shipment timely, buyers will be forced to cancel orders,” Md Shahidullah Azim, Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The New Nation.
“If the government does not allow production activities during the lockdown, it will be a Self-destructive decision for our economy,” Azim said.
Fazlee Shamim Ehsan, Vice-President of the BKMEA, said, “I have already requested my buyers for delaying shipment six times and the final shipment date will also be expired, if the factory remain closed during the lockdown.”
“Then, I have no options but to send the produced goods by air, which is very expensive, or cancel orders as they are not giving no more time,” Ehsan, also owner of Fatullah Apparels Ltd, added.
“Similar situation is prevailing in the most of the factories. The cancellation of shipment orders will tarnish the goodwill of the country,” he said.
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) has urged the government to allow businesses, especially export-oriented ones, to keep their factories under operation during the 14-day strict lockdown to avoid big economic loss.
If all types of industries are kept closed under the new lockdown restrictions, production activities will be halted and the supply chain will completely be disrupted, said FBCCI President Md Jashim Uddin in written statement on Friday.
Earlier on Thursday, a BGMEA delegation led by its President Faruque Hassan held a meeting with the Cabinet Secretary and requested him to keep export-oriented industries out of lockdown.
In meeting, BGMEA president said that the sector is overwhelmed with huge purchasing orders and if we fail to place shipment on time, the businesses will be loser.
Not only the garment factory owners but also banks, backward linkage companies will be loser massively.
Speaking programme on Saturday, State Minister for Public Administration Farhad Hossain said all offices and factories including of readymade garment will remain closed during the lockdown period.
But, the BGMEA still hope the government will revise its decision for the sake of the country’s economy.

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