Trade
6 years ago

RMG sector bearing brunt of student protest

AP file photo used for representational purpose
AP file photo used for representational purpose

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The country's readymade garment (RMG) sector has started facing difficulties in making timely shipments while buyers are also cancelling their trips to Dhaka due to the ongoing student protest, industry people said.

Workers who use public transports are suffering much due to scarcity of transports, they added.

Apparel sector leaders, however, expressed fear that work orders for next season might be slow down or shifted to other competitors if such a situation prevailed for a long time.

School and college students took to streets for the seventh consecutive day on Saturday and staged demonstrations to press home their demands that included punishment to those responsible for the July 29 road crash at Kurmitola killing two students.

Following the students' movement, transport owners have called strike and stopped operating vehicles on the roads in fear of getting into trouble.

"Buyers have already started cancelling their visit to Dhaka due to the ongoing situation," Md Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told the FE on Saturday.

"Timely shipment is most important in RMG trade. We are facing problems with shipping products from Dhaka to Chattogram", he added.

The BGMEA president said they were also worried about getting work orders for next season. "If such an unstable situation persists longer, it would seriously hamper the business," he said.

Moreover, it might create an image crisis both for the country and sector, he noted.

Industry people said buyers especially their local representatives here in the country are very cautious and reluctant to move out.

Foreign buyers are afraid of violence and there were some incidents of violence during the last two days, they added.

The prevailing situation might give a wrong message to buyers, they added.

Australia and the United Kingdom have already issued travel alerts for their respective nationals living in Bangladesh amid the ongoing student demonstrations across the country.

"Student demonstrations resulting in violence have occurred across Dhaka and other districts, including along the main airport road. Expect significant traffic delays and disruptions. Protests and disruptions may continue", according to the travel alert issued on the Australian foreign affairs' website.

There have been a series of protests across Dhaka following the death of two students, the UK's alert said adding that some of which have turned violent.

"You should be vigilant at all times, stay away from large gatherings, and avoid political offices and rallies," it read.

Abdul Kader Khan, President of Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) said they were also facing difficulties in shipping accessories to factories.

"We deliver products mainly to factories located in Gazipur, Savar and Narayanganj. Due to the ongoing movement, delivery is being delayed that might result in failure in timely shipment of finished products," he added.

Sirajul Islam Rony a laobur leader said it is the working people who have been suffering most.

Workers usually live adjacent to their factories but there are a good number of workers and officials who use public transports to travel to and from their respective workplaces, he added.

Moreover, there are many factories that provide transport for their workers and they are facing difficulties as transport owners are reluctant to bring their vehicles to street, he added.

The country earned $30.61 billion from RMG exports in the just-concluded fiscal year. The sector employs nearly four million of workers, the majority of them are women.

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