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Change Your Life! |
Set up separate export fed, Sinha urges government |
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News |
March 22, 2000
BGMEA President Anisur Rahman Sinha has demanded that the government set up a separate authority to face the post-MFA regime and form and apex body of the export organizations to look after the interest of the exports.
Sinha said maintaining competitive edge against neighboring courtiers would be very difficult once the quota facilities are withdrawn in 2005.
Due to some advantages like availability of raw materials, quick delivery of goods and cheaper prices, the buyers would be more interested in buying goods from those countries under a quota-free market.
"A doomsday situation is likely to arise in the country after withdrawal of all garments quota in 2005. The government should do something immediately to face the situation," he said while talking to the Daily Star on Monday.
"I think this should be the most important issue before the government now, and an authority headed by a secretary under the Prime Minister's Office should be set up immediately to save the sector from disaster."
"If the garment factories close down, the country's economy will collapse because the sector employs over one crore people and contribute to more than 70 percent of the total export earnings," said Sinha.
The government had set up a separate authority while building Bangabandhu Jamuna Multi-purpose Bridge (BJMB) and it was completed timely. "So the need to protect the garments sector and the country's economy is no less important than the BJMB," he argued.
The necessity of a separate body is there because the line ministry is busy with other issues and does not have much time to focus on the emerging crisis. "The main job of the proposed authority would be to see what action the government could take to face the situation and avoid a disaster." Sinha said.
The government should not sit idle because the disaster in garment sector would automatically bring many social problems like unemployment of large number of workers, mainly women.
"If they lose job they would just be thrown on the street because they do not have any alternative sources of income. They are also not fit to work in any other sector as the working condition is not comfortable there," Sinha added.
He said as much as Tk 35,000 crore is need to set up backward linkage industries in the country to provide raw materials and accessories the garments factories need.
But the government can also take alternative steps to increase competitiveness of local industries. Direct shipping arrangement with countries like Hong Kong, China , Taiwan, South Korea and and Indonesia will increase the availability of raw materials in shorter period as these are the places where raw material come from.
"If allowed, private sector can set up warehouses on commercial basis for providing raw material, but for all these alternative measure there should a government policy guidelines," he added.
The indication of buyers moving toward other destinations is already apparent as garments export to Canada declined recently following withdrawal of quota on some item.
Sinha claimed that the retention level of garments sector is now around 35 percent out of total 4.2 billion dollars export earnings from the sector.
He felt that there should be a separate body of export organizations to look after the interest of the exporters and increase the country's export earning in the future.
He observer that Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) that represents the business community is not enough provide necessary support to the exporters.
Earlier, there was only one main item the country exported and the exported figure was very small. But now the export volume has increased tremendously over the years and the export sector also expanded a lot. The FBCCI does not represent the exporters adequately, Sinha said.
The BGMEA president is optimistic that the government will accept the proposal because the growth in export would help increase revenue earnings of the he government.
Source: The Daily Star.
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