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Saturday, December 10, 2005

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Bombings to hit export seriously
Govinda Shil
12/10/2005
 

          Business leaders warn that the country's exports might suffer a serious setback if the current spate of bombings is not stopped.
They said the countrywide bombings on August 17 and higher yarn prices have slowed down total export revenue in September.
Some chamber leaders have warned against on-and-off bombing attacks saying the incidents would cast a negative impact on trade and investment.
The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) president has voiced his serious concern over the suicide bomb attacks.
Major export items, which account for about 90 per cent of the country's total foreign exchange earnings, fell short of their targets during July-September period of the current financial year, Export Promotion Bureau statistics show.
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said acute crisis of yarn and its high prices are partly to blame for export earning shortfall.
The BKMEA and some other trade bodies said countrywide bomb blasts on August 17, and China's export surge might have affected Bangladesh's exports.
Their observation on bomb blasts was backed by the EPB figures that show that during September alone the export fell short by US $ 168 million of target. And in the previous two months (July and August), export dropped by only US $ 23 million.
During September, the country fetched a total of US $ 719 million, while the target was set at US $ 887 million. During the July-September period, the merchandise exports earned a total of US $ 2473 million, showing a deficit of US $ 191 million.
"I am sure August 17 bomb attack and higher yearn prices have slowed down exports of knit and other products," said Fazlul Hoque, president of BKMEA.
Rashed Moudud Khan, a leading ceramic tableware exporter said higher oil prices and China's export surge have affected Bangladesh's ceramic trade.
He said the government must do something to reinvigorate ceramic trade.
Official figures show the export of ceramic tableware fell to $ 8.18 million from its $ 8.66 million during July-September period.
"The government may charge us the same gas and power prices as it is charging power plants. We need this because freight charges and international oil prices have pushed production and transportation costs much higher," Khan observed.
Bangladesh Garment Manufacturers and Exporters Association president Tipu Munshi said woven garments fell short of target by little more than six per cent, but it could be recovered significantly in the coming seasons.
A leading jute exporter, Mahfuzul Hoque, said the buyers were hesitating to place orders as prices of raw jute shot up. "But, at the end of the financial year, the importers would start buying," Hoque said.
Exports of raw jute, jute goods, ceramic ware, leather, shrimp, knitwear and woven garments recorded deficits during July-September period.
FBCCI president said the importers have contractual obligations towards their chain stores and wholesalers. As a result, the importers would look for a guaranteed environment that will ensure smooth supply of products.
"I urge the government to employ counter intelligent agents in all the public places, such as bus, passenger ship and train terminals. They should set up check posts in as many places as they can to ensure safety of public life and growth of the economy," FBCCI president added.

 

 
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