Import-Export hard hit

Supply chain disrupted due to blockade

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Staff Reporter :
Imported goods, particularly the perishables, in different land ports of the country are damaging due to cut off supply line since January 5. Export items in the factories in Dhaka and other areas also facing similar difficulties because of the ongoing blockade.
Since supply chain has been disrupted and trucks laden goods and raw materials to and from Dhaka could not reach the destination, the importers and entrepreneurs are counting huge loss like that in December 2013 and January 2014.
The fresh wave of political unrest has dealt a blow to economic activities after the businessmen had managed to overcome the losses taking the last one year’s peaceful situation.
Businessmen have expressed apprehensions that if the current blockade and similar programmes continue, the economy would be adversely affected and the supply chain would be damaged.
As a result, various products may be piled up in the factory compounds and the authorities would be compelled to reduce production, they added.
“This blockade was unexpected. It takes many days to overcome losses incurred in one day and if this continues, we will face long-term losses,” said acting president of Dhaka Chamber of Commerce and Industry (DCCI) Humayun Rashid.
 FBCCI estimated the loss due to the 2014 unrest at Tk 1000 billion. The year 2014 saw 62 days of hartal, strike, blockade and similar programmes.
BKMEA vice president Aslam Sani added that production cost would increase by 20-25 per cent due to hartal and blockade. “We will have to suffer for a series of losses in that case. We will lose competitiveness internationally,” he said.
The supply of Aarong milk came down from daily average of 100,000 litres to around 80,000 litres on Monday. “Many distributors have reduced their order fearing closure of many shops,” said Brac Aarong Milk Dairy factory manager Amtaj Ali.
Consumer goods manufacturing company Pran RFL managed to send slightly over 300 trucks laden with goods every day compared to an average of 700 trucks. The company’s collection of milk also declined to 100,000 litres against 150,000 litres daily, Pran’s director (marketing) Qamruzzaman said.
According to Bangladesh Shop Owners’ Association, there are around 2.5 million shops of different sizes and categories across the country, which incur a daily loss of Tk 1.5 billion.
Most of the traders in Jessore could not send trucks carrying imported goods from Benapole land port to different destinations in the country. The situation in another land port Banglabandha remained the same.
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