Dhaka, Bangladesh (BBN)– The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Blockade raises cost of business
Arifur Rahman, a cotton importer and spinner, is in deep trouble. He has been paying Tk 70,000 a day in port demurrage for over a week as he cannot have the imported cotton transported to his factory in Mymensingh from Chittagong port due to the ongoing blockade. Rahman cannot continue production at his factory in Bhaluka for shortage of cotton. “If I fail to bring the fibre to my factory, I will lose buyers,” said a worried Rahman, who had imported it from the US a few weeks ago.
RMG sector suffers 25pc output loss due to blockade
The ongoing political turmoil has been disrupting production and supply chain of basic raw materials in the country’s apparel industry, putting attainment of the sector’s targeted export earnings at great risk, industry insiders said. According to them, the country’s largest foreign currency-earning sector has already suffered a 20-25 per cent production loss over the last 20 days of non-stop blockade and political impasses.
Bangladesh RMG makers lose EU market share
Bangladesh’s RMG sector is gradually losing its share in the European Union market due to factors like political unrest and lack of compliance, which gives boost to its global competitors. According to Eurostat data, the country’s apparel export registered slow growth in July-October period last year compared to its competitors. In 10 months of last year the country earned 11.7% RMG export growth in the EU market while Vietnam posted 22.88% growth, Cambodia 25.41% and Pakistan 28.26%.
Bangladesh Bank purchases $11m more from two banks
Bangladesh Bank (BB) purchased US$11 million more from the commercial banks on Monday aiming to keep the country’s inter-bank foreign exchange (forex) market stable, officials said. “The central bank has bought the US dollar from two banks directly at market to protect the interests of exporters and migrant workers,” a BB senior official told BBN in Dhaka. The banks are National Bank Limited and Bank Asia Limited.
Garment exports to US on the decline
Garment exports to the US, Bangladesh’s single largest export destination, declined 3.17 percent year-on-year to $4.64 billion during January-November last year, due to a slowdown in work orders after the Rana Plaza building collapse. Bangladesh was the sixth largest sourcing country for the US during the period though Bangladesh’s position was third even a few months ago, according to the US Department of Commerce.
Blockade takes toll on jute spinners
The ongoing countrywide blockade is causing widespread disruption to supply of raw jute, jute batching oil (JBO) and diesel to the factories, forcing jute spinners to cut production by 20,000 tonnes worth Tk 1.5 billion in last three weeks, insiders said. Mohammad Shahjahan, chairman of Bangladesh Jute Spinners Association (BJSA), said supply of raw jute to the factories is being hampered seriously due to the non-stop blockade.
BBN/SSR/AD-27Jan15-9:30 am (BST)