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The Financial Express

Factory closure may disrupt supply chain of essentials

| Updated: July 18, 2021 16:31:10


Factory closure may disrupt supply chain of essentials

A state agency has cautioned that the proposed long-term closure of factories, including those producing commodities, might disrupt supply and the potential hike in their prices in the market.

The Bangladesh Trade and Tariff Commission (BTTC) has warned against the backdrop of a government decision to keep all industrial units shut during the harder two-week lockdown after Eid.

The countrywide lockdown will take effect from July 23 with an eye to containing the recent rapid spike in Covid-19 casualties.

The BTTC has recently suggested keeping commodity-producing and packaging units open during the period.

It called for the commerce ministry to take necessary measures to this on July 14.

Leading local manufacturers, including City, Meghna, and TK Group, have a shortage of storehouses after the final processing of essentials like rice, flour, edible oil, sugar, salt, and lentil.

The companies have only five to seven days' capacity to store such consumer goods in their factories, according to the BTTC.

As per expert advice, the government has announced another 14-day shutdown from July 23 to August 05 as Covid-19 cases and deaths have continued to rise rapidly in the country.

All factories, including apparel units and production of consumer items, will thus remain stopped during the period.

When contacted, a senior commerce ministry official said, "We're in favour of keeping consumer item production open during the upcoming lockdown."

"We will discuss this issue with the authorities concerned," he told the FE.

The official said, "Measures have been taken to keep prices and supply of essential items stable throughout the pandemic."

Meanwhile, apparel makers on Thursday pleaded with the government to allow the operation of export-oriented clothing factories during the upcoming lockdown.

They made the request in a letter to the prime minister following the issuance of a notification on restrictions by cabinet division on July 13.

According to the notification, all the industrial units will keep shut for two weeks in a bid to contain further spread of novel coronavirus.

The deadly respiratory viral disease has been claiming more or less 200 lives and infecting over 12,000 people per day in the last couple of days.

Garment manufacturers said they were receiving a large volume of work orders as the pandemic situation improved in the main export destinations.

Keeping factories shut at this time would force buyers to shift orders to other manufacturing hubs, they argued.

The government high-ups and expert committee are expected to sit today (Saturday) to find ways to keep apparel units running during the lockdown.

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