Political Violence is Pushing Back Development of RMG Sector in Bangladesh
In Bangladesh, unwanted political violence is major weakness point of RMG sector. Political unrest again and again interrupts continuous improvement of RMG Sector.
In 1983-84, Bangladesh exported 3.89% of RMG from total export. But now Bangladesh export 79.61% in 2012-13 and 81.16% of RMG from total export in 2013-14. Bangladesh gain 24.5 billion US dollars of foreign currency, which it covers about 18 percent of GDP.
Still now we are suffering image crisis like fire in the Tazreen Fashions factory in November, 2012 that killed more than 110 and the collapse of the Rana Plaza garment factory building in April, 2013 that killed over 1,100 people and more than 2,500 were injured in the disaster. It may be the second biggest industrial accident in recent history.
The pain had no sooner come than fading away effect of fire in the Tazreen Fashion, Rana Plaza tragedy, the GSP withdrawal and political unrest in 2013.
The political stalemate has hit the country on one year completion of controversial January 5 election which brought ruling Awami League into power again with its main rival BNP boycotting. Recalling 2013 political unrest when RMG exporters were forced to deliver goods through air shipment by spending additional Tk5, 500 crore and selling products in discount of Tk 900 crore.
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| Political Violence in Bangladesh |
The daily production value in the garment sector is estimated at Tk 430 crore per day. So, even if half of it is disrupted, the blockade is disrupting output valued at Tk 215 crore per day.
Due to blockade, supply of raw materials, accessories, etc. transportation gets affected. So, Garment Manufacturers can’t make the product in time as a result they fail to shipment on time.
Buyers are cancelling orders as exporters fail to meet the lead time due to transport crisis. Besides the order cancellation, the global buyers will decrease the volume of orders as they are suffering from lack of confidence whether the situation will be normal shortly.
The target of readymade garment (RMG) industry is $29 billion in export earnings by the end of the current fiscal and the dream of taking export to $50 billion by the 2021 will be a ‘day-dream’ if such situation continues, BGMEA said.
For our country, this sector is very necessary. RMG is the backbone of total export.
If the existing industry falls sick, who will take the responsibility?
So, “STOP” the violence!
References:
- http://www.bgmea.com.bd/home/pages/TradeInformation#.VL6_eyy47LU
- http://www.thedailystar.net/bgmea-assessing-blockade-losses-60645
- http://bdnews24.com/business/2015/01/10/bkmea-urges-bnp-to-withdraw-transport-blockade
- http://newagebd.net/87189/rmg-exporters-hit-hard-as-shipment-halves/#sthash.6bbA27AL.dpuf
- http://www.clickittefaq.com/business/political-turmoil-cost-apparel-sector-tk-4-5bn-bgmea/
- http://www.daily-sun.com/print/front-page/2015/01/13/481941#sthash.r90spKr4.dpuf
- http://bdnews24.com/economy/2014/07/21/bangladesh-targets-34.5bn-export
- http://businessnews24bd.com/rmg-sector-in-trouble-as-political-unrest-continues/
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