Cumilla Export Processing Zone (EPZ) has announced a three-day general holiday starting from Saturday after floodwater entered many factories inside the specialised industrial zone.
Bangladesh Export Processing Zones Authority (BEPZA) Executive Director (Public Relations) Abu Syeed Md Anwar Parvez told The Business Post, “There is around 1.5 feet of water inside Cumilla EPZ. Floodwater has spread inside the ground floor of many factories.
“Amid the situation, Cumilla EPZ authority has announced the holiday till Monday. We are expecting the flood situation to improve during the period, and operation will hopefully resume on Tuesday.”
Although the flood has yet to create severe damage in the EPZ area, industry insiders are concerned over backlog, after they already faced a 10-day production shutdown due to the mass uprising led by students that ousted the Awami League-led government from power earlier this month.
They said that factories were already in a critical situation due to the ongoing global and domestic crisis, and the flood would only put them into further problems. Now there is no alternative except government support.
Feni, Cumilla, Noakhali, Lakshmipur, Brahmanbaria, Chattogram, Khagrachhari, Cox's Bazar, Moulvibazar, Habiganj and Sylhet districts have been affected by the ongoing flood since August 20.
More than 9,44,000 families have been left stranded in the flood while 2,84,888 people and 21,695 cattle were given refuge in 3,527 shelters in the flood-hit 587 unions and municipalities under 77 upazilas of 11 districts.
Yongtai Inds (BD) Ltd, which manufactures premium quality sweaters for Western customers, annually earns $10 million through exports.
Due to the recent unrest, the factory faced nearly $2,00,000 in losses as it failed to meet shipment deadlines and exported goods through costly air freight.
The company’s Managing Director Ramize Khalid Islam said, “We are already in a losing position due to the unrest. During the protest, factories were closed for 10 days. Buyers are concerned about their goods. We need stability to do business.”
“And then, when we are trying to recover our losses, a natural disaster hit the country. We don’t know how we will tackle the situation.”
There are 49 factories in Cumilla EPZ which exported worth $790 million goods in FY2022-23. Around 50,500 workers work here, according to the BEPZA.
Since FY2001-02, Cumilla EPZ has earned $6.27 billion through exports, according to BEPZA data.
Bangladesh Garment Manufacturers and Exporters Association Director Mohiuddin Rubel said, “We have yet to learn about any severe damage at the Cumilla EPZ factories. We are monitoring the situation. BGMEA will take the necessary initiative for its members.”
