Factories to remain shut during lockdown

Home Minister Asaduzzaman Khan on Tuesday reaffirmed that all factories would remain closed during the current spell of strict lockdown.

“The lockdown will continue until August 5. Industrialists urged us to allow them to reopen factories but we could not keep their requests,” he said after a meeting with representatives of different ministries.

Export-oriented sectors, including readymade garment and textiles, have been urging the government to allow

factories run from August 1. They argue that the closure would disrupt production and buyers may cancel previously placed orders and the possible orders for last summer, Christmas and winter. Around 82 per cent export earnings came from RMG sector in the last

fiscal year, according to the Export Promotion Bureau.

The government imposed the current spell of lockdown from July 23 to contain the spread of coronavirus. The country has been seeing record numbers of Covid-19 deaths and fresh cases.

Tuesday’s meeting, presided over by Asaduzzaman, was attended by Health Minister Zahid Maleque. Asaduzzaman said they did not discuss a possible extension of lockdown but looked for ways to contain the spread of Covid-19.

Five associations of RMG and textile sector and Exporters Association of Bangladesh are scheduled to meet the Cabinet Division on Thursday to convince the government to allow continuation of production.

BGMEA President Faruque Hassan said that the buyers are putting pressure on them to meet shipment deadline. “That’s why we need to open factories,” he told The Business Post.

Stakeholders say around 40 per cent export order in August season may be cancelled if they fail to start production by August 1.

BKMEA Vice-President Fazlee Shamim Ehsan claimed that goods worth an estimated $1 billion would be affected if the factories remain shut during lockdown. Manufacturers will either be forced to sell around 40 per cent products at discounted price or stock them.

Bangladesh Buying House Association said vaccinating workers was the only way to continue production. It urged the factories concerned to arrange vaccination for their workers.

“Bangladesh may lose buyers to its competitors if the suppliers fail to deliver goods on time,” BBHA chief Kazi Iftequre Hossain told The Business Post.