Editor’s Note
The current month of April 2022 coincides with the two biggest festivals of Bangladesh – the new Bangla New Year and the end of the holy month of Ramadan which would bring the greatest festival for Muslims, Eid.
These times also brought good times for local textile millers as sales recovered strongly.
This Eid ul Fitr time has brought a good day for the local textile millers as they are happy with the sales after two years of break. The sales of textiles and garments in the local markets rebounded strongly with the onset of Pahela Baishakh and in the Eid ul Fitr.
The local textile millers have passed bad days over the last two years because of severe fallouts of the Covid 19. Because either their factories were shut down or production was halted or production was half because of the Covid-induced challenges.
However, after two years they are making a good business as the government has already withdrawn major Covid-related rules and restrictions. For instance, the local millers have already made a good business during the Pahela Baishakh, the first day of the Bangla new year which was on April 14th, as the people were allowed to celebrate the Bangla new year after two years. Normally, every year the millers can sell goods worth nearly Tk 2500crore but this year the amount was bit less as the full scale celebration was not possible because of Ramadan time.
However, the local spinners and millers are passing busy time as they can sell their goods at good quantity ahead of the Eid ul Fitr. They are happy that they can make good business after two years. They are expecting that the sales will be more than Tk 20,000 crore the amount that they used to sell in the pre-pandemic time.
The inadequate gas supply to the major industrial hubs and plants have been severely affecting the production of goods over the last many months. The government should ensure regularly adequate gas supply to the industrial units so that they can go for full swing production to make good business to cover the losses that they incurred due to the Covid-induced challenges.
The Russia Ukraine war has been affecting the price of cotton in the international markets. The prices of cotton have climbed up in the international markets abnormally. So the local textile millers and spinners have to spend more money to import the cotton from the international markets as Bangladesh produces less than two percent required nine million bales of cotton in a year. This year the cotton consumption will cross nine million bales threshold as the international clothing retailers and brands have placed increased volume of work orders in Bangladesh.
With the increased price of cotton the abnormal shipping freight has also been affecting the local textile millers and spinners as they have to pay more than 500 percent freight charge. The over charge of freight has also been affecting the local garment exporters.
In such a situation the government should try to reduce the cost of production by easing the rules and regulations so that the businessmen can continue their business to overcome the losses. The businesses need to be given different facilities at this moment so that they can be more competitive in the international markets.
The gas supply should be ensured adequately so ghat they can continue the production in the factories for timely shipments of goods. Shipment missing is bad for businesses as they have to face either discount severely or cancellation of consignments by the international buyers or very expensive air shipments. So the government should listen the voice of businessmen.
Shubho Noboborsho & Eid Mubarak – Happy Bangla New Year and Eid Greetings!
Mehdi Mahbub
www.mehdimahbub.com
mehdi.mahbub@bestsourcing.biz
