Ctg RMG units to feel pinch with expiry of MFA

Leaders of Bangladesh Garments Manufacturer and Exporter Association (BGMEA) here said that in the post-MFA era thousands of workers might lose their jobs in the sector in Chittagong alone.

They are worried about the poor preparation by the government and other bodies or authorities concerned to face the challenges of globalisation from next month when Bangladesh RMG products will no longer enjoy facility.

Some of them are found sceptical about the government's ability to withstand the imminent situation.

They, however, believe that garments sector will not suffer from disastrous future provided proper steps are taken and all the concerned bodies of the government come forward to face the challenges ahead.

Senior Vice-President of Chittagong Chamber of Commerce and Industry (CCCI) and BGMEA Director SM Nurul Haque said "The situation might not be the same as you apprehend that the sector will collapse from the very beginning of January after the end of MFA-era. But it may happen so and create enormous problems to the sector if we fail to take effective measures and proper preparations soon."

In this regard, he said, to combat the situation "We need to increase the productivity, reduction in overhead costs and utility services such as port and customs," he said.

Nurul Haque suggested immediate formation of bonded ware house, saying that "It is one of the vital points to face the phase-out period successfully."

He said the sector needs subsidy for at least three years to survive. "If we can sustain for two years from January then I believe the sector will survive. Otherwise, it will become unstable. To make it stable the subsidy is badly needed," he said.

Regarding preparation, he said that we would form a committee comprising of chamber, BGMEA, Bangladesh Shipping Agents Association (BSAA), Clearing and Forwarding Agents Association (CFAA), Freight Forwarders and Port Users.

"We will apprise the government of the ways and means how to speed up the works and reduce cost at port and other places," he said.

Nurul Haque said the government should start strong diplomatic initiatives through Bangladesh Embassy in USA to obtain duty-free access there. "We were trying to get the facility through lobbyists but it would better if the government come forward right now in this regard," he said.

Out of around 4,000 garments industries, including small, medium and large scale, the port city has alone about 600 units, sources said. The number of workers in the country is about 22 lakh. Of them, about six lakh is from Chittagong. And about 1.85 crore are dependent directly or indirectly on them.

Of the Chittagong-based industries, about 500 factories are in production and about 200 of them get direct supply order while 300 others sub-contract, sources said.

On the other hand, about 100 of those 300 industries are completely dependent on sub-contract.