Violence in Bangladesh.
The textile industry, an important pillar of Bangladesh’s economy, is facing a crisis due to violent protests, devastating floods and political unrest. Due to this, the sector’s growth and global reach are in jeopardy. The textile industry accounts for more than 80 percent of Bangladesh’s total export earnings and contributes around 11 percent to the country’s gross domestic product.
Not only this, the textile industry also provides employment to thousands of people in the country. Due to widespread protests against the reservation system, Sheikh Hasina resigned from the post of Prime Minister on August 5, left the country and went to India. She is currently only in India.
Loss of Rs 4,500 crore
For the past two months, protests, curfews and violence have been ongoing in the country. The unrest has not only disrupted factory operations but also caused severe economic losses. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) recently released a financial loss report estimating a loss of 6.4 billion taka (around Rs 4.5 billion) due to the strike and disruption of communications.
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The newly elected BGMEA chairman Khandokar Rafiq-ul Islam said the target of increasing exports to around $45 billion this year will not be achieved. He said I think this is not a permanent crisis and we will overcome it. The exact assessment of the losses will be known later, but yes, it (disturbances and floods) have had an impact.
The crisis is looming in the textile industry
Expressing similar views, former minister and BGMEA chairman Ghulam Sarwar Milan said that the textile industry has been severely hit by the political unrest and floods as both production and the supply chain of raw materials have been adversely affected. The textile industry is facing an unprecedented crisis. Production is 15-20 per cent lower compared to the same period last year. Many orders have been affected as investors and order takers are reluctant to invest. Many small units have either shut down or are working on contract for larger units.
900 factories closed
According to BGMEA sources, out of about 3,000 small and large garment factories in Bangladesh, 800 to 900 have closed down since last year. Large factories have been spared, but small and medium-sized factories are the worst affected. If the situation continues like this, the situation will only get worse.
