No decision yet if RMG units will remain open

A decision is yet to be reached on whether garment factories would be allowed to be kept running during an upcoming 14-day lockdown beginning July 23.

Briefing journalists after a meeting with the cabinet secretary at Bangladesh Secretariat yesterday, BGMEA President Faruque Hassan said they would sit again tomorrow,with them pressing in favour of keeping open.

Hassan has been reiterating the demand over the last three days, saying they otherwise apprehend a massive losses as July and August were an important period for the shipment of goods and booking work orders for next summer.

The chief of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said many international retailers and brands have been frequently asking local suppliers about the fate of production and shipment of goods during the lockdown.

"Buyers are not cancelling the work orders up until now but we will face a lot of crisis if the factories are kept shut for almost three weeks," Hassan said, adding that the suppliers had been recouping losses incurred last year.

Last year international retailers and brands initially suspended and cancelled work orders worth $3.18 billion. After intense negotiations they reinstated some 90 per cent of it.

"We have been receiving a lot of work orders nowadays from our buyers. If the lockdown is imposed, there is a possibility of losing those work orders, as buyers will look for alternative destinations," Hassan said.

He said the BGMEA provided a letter to the cabinet secretary citing their demand. "We have not mentioned any specific time, as we want continuation of production as usual," said Hassan.

Commerce Minister Tipu Munshi told The Daily Star on Wednesday that the government was considering allowing garment factories to remain open so that the biggest export-earning sector can continue production and keep their commitment to international buyers.

Entrepreneurs said the July-August period was the prime season for apparel manufacturers since sales rise in the Western markets for winter and Christmas. Of apparel items shipped from Bangladesh, 40 per cent are exported during these two months.

Apex trade bodies of textile and garment manufacturers and exporters had cited their demand at an emergency meeting on Wednesday.

Munshi said he had been facing a lot of pressure from the business communities, especially export-oriented garment makers, to let the factories stay open.

"I will have a meeting with the government high-ups and expert committee very soon to find ways to keep the factories running during the lockdown," Munshi had said.

Suspension of production for lockdown and Eid holidays for nearly three weeks is a long time, and the period may be shortened after discussion with the government high-ups, he said.

"We are also thinking about some alternatives now so that both lives and livelihoods are protected during the pandemic time," he said.

The lockdown period could be shortened for the garment sector as the infection rate is very low among the workers and because testing and medical facilities are available for them, the minister also said.

"An opportunity has also been created for garment businesses, as a lot of work orders have been coming to Bangladesh even during the pandemic. We should grab this opportunity while catering to the work orders on time," he said.

Leaders of textile, knitwear and garment accessories sectors and formers BGMEA presidents also attended yesterday's meeting.