Following Saturday’s major fire that destroyed imported industrial inputs at the Dhaka airport’s cargo facility, local businesses are facing a severe shortage of raw materials. The pharmaceutical and clothing industries are the most impacted.
Inamul Haq Khan, Senior Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) stated, “Overall, the affected factories will have to delay production for at least two months because of the loss of raw materials and intermediary goods at the airport.”
Approximately 901 clothing factories have reported losses of US $ 10 million (Taka 122 crore), according to BGMEA and damages are predicted to increase. Ahead of Christmas, apparel manufacturers caution that failing to meet export deadlines may lead to cancelled orders and declining profit margins.
“Our textile and garment sectors are being targeted,” stated Showkat Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA), during a press conference held in Dhaka on 20th October. Airport fires damage Bangladesh’s standing internationally and jeopardise its agreements with foreign partners.
The Exporters Association of Bangladesh and other industry experts predict that the total losses could amount to US $ 1 billion. Exporters have warned that the incident could harm Bangladesh’s reputation in international trade and have called for stronger safety regulations and quicker insurance reimbursements.
