RMG closed from Monday – losses feared with another round of holidays
The government yesterday also declared a three-day general holiday to address the ongoing protests, which began with demands for quota reform in government jobs and have now escalated into calls for the resignation of the government
The fear of losing export orders has resurfaced as export-oriented factories, struggling to recover from the shutdown and internet blackout in the third week of July, now face renewed challenges as the government announced indefinite curfew without breaks amid intensified ongoing movement that caused dozens of fresh deaths yesterday (4 August).
The government yesterday also declared a three-day general holiday to address the ongoing protests, which began with demands for quota reform in government jobs and have now escalated into calls for the resignation of the government.
As a result, factories and banks will remain closed for at least three days, starting Monday. Factory owners in the Dhaka Export Processing Zone and in the Konabari, Chandra, and Shafipur areas of Gazipur district, as well as BSCIC in Narayanganj, have shut down their units following reports of vandalism at some of their factories yesterday. Among those affected are three large textile factories – Ridisha, Badsha, and Envoy in Mymensingh – and the Beximco PPE factory in Savar, all of which sustained damage.
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Considering the unrest, most international buyers are unwilling to discuss new order enquiries, which may lead to a shortage of orders for the coming days, according to industry insiders.
A country manager at a multinational buying house, speaking on condition of anonymity, told The Business Standard, "Most of my buyers have informed me that they will not discuss new orders for the next two months due to the ongoing unrest. They want to observe the situation before placing any new orders."
He added that following this decision by buyers, most knitwear factories may face an order shortage from October to December this year, while woven garment factories may experience reduced orders from November to January.
Echoing this sentiment, RDM Group Chairman Rakibul Alam Chowdhury noted that they have not received any new enquiries in the last 15 days.
Businesses are now deeply concerned about when the situation will improve as they are racing against deadlines to deliver winter clothing and import raw materials for summer orders.
"We received a five-day extension from buyers for the July losses. Will they grant us another extension?" said an exporter who requested anonymity.
According to operators, port activities, including those at Chattogram Port, have also been reduced by two-thirds.
Speaking with TBS, Bangladesh Garment Manufacturers and Exporters Association Vice President Abdullah Hil Rakib said, "All apparel factories will be closed from tomorrow following government directives as another round of general holidays and an indefinite curfew will begin on Monday."
In the third week of July, factories were closed for at least three days due to general holidays declared amid the ongoing unrest.
"The apparel industry leaders were trying to meet with relevant ministers yesterday," said the BGMEA leader, adding, "We have not yet been able to secure an appointment with any ministers to discuss the business situation."
In a statement yesterday, the BGMEA said, "In view of the prevailing situation, owners close all garment factories across the country, considering the overall safety of the workers."
A top official from a leading knit composite group said if the government does not permit them to run production, export-oriented factories might face discounts, high air freight costs, or even order cancellations.
He noted that factories are under pressure to meet their buyers' lead times, and due to previous general holidays and curfews, they have lost production opportunities. Some buyers have granted extensions of up to seven days without discounts, increased air freight costs, or cancellations, he added.
The official also feared that the second round of general holidays would adversely affect their future business, including next summer and winter orders, as buyers may seek to stabilise their supply chains elsewhere.
In a separate statement, the Bangladesh Textile Manufacturers and Exporters Association mentioned, "In view of the deteriorated law and order situation in the country and the government's declaration of a three-day holiday from August 5 to 7, all BTMA member mills will remain closed during this period."
"Decisions on reopening the mills will be based on the situation and any further government declarations," the statement reads.
