Staff Reporter :
The country’s apparel industry hits hard due to the ongoing countrywide transport strike and fuel price hike.
Shipment of apparel may be affected if the ongoing nationwide transport strike, triggered by increased diesel and kerosene prices, continues, said the apex trade body for the garment exporters.
Already, container movement to Chattogram Port from the private Inland Container Depots (ICD) has been blocked by the pro-strike workers.
The delivery of imported goods at the port has been suspended since Friday morning. The situation has given rise to fears over container congestion at the port as well as on-time delivery of export goods to the international buyers.
As the meeting between the home minister and transport leaders failed, the latter on Saturday decided to continue the strike until the fuel price is cut.
“We are afraid that the shipment may run late or even get cancelled if the strike continues for long. Another option for us is to do air shipment which is pretty expensive,” said Mohiuddin Rubel, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
On the other hand, the latest fuel price hike will push up the overall cost of doing business, thus affecting the competitiveness of the local textile and apparel industry in the global market, the sector insiders said.
According to the market operators, price enhancement will not only increase production costs of the diesel-run power generation, but also the overall transport costs significantly.
The hike comes at a time when the sector has started reviving with bagging huge work orders. The fuel price hike also coincides with the rise in prices of raw materials like cotton and yarn, and freight charge.
On Wednesday, the government raised the prices of diesel and kerosene at retail level by Tk 15 per litre.
BGMEA Vice-President Mohammad Shahidullah Azim said the cost of doing business would be higher as many factories are running on diesel-run generators.
The cost of transportation to and from factory to port in order to bring imported goods and exportable finished garment items would also go up significantly, he added.
“We might not make timely shipment…,” Mr Azim remarked, adding that Bangladesh is already in a disadvantageous position due to its long lead time.
The industry already faces difficulties with increased production costs for 200-300-per cent rise in freight charges and price hike of raw materials, especially yarn, followed by higher global cotton rate, he said.
Exporters fear that the flow of orders may not bring good results as they will face additional liabilities for any failure to ship timely braving all the odds.
Bangladesh Textile Mills Association president Mohammad Ali Khokon said local textile mills use diesel for generators and the price hike will affect their business for increased production costs.
