China has
been isolated from deadly coronavirus. For the past three months, the world has
closed all sorts of contacts with China.
That has had
a negative impact on the global economy. With China, the import-exporting
countries are in crisis. Some sectors are under severe threat.
Meanwhile,
the virus has spread across the Chinese border to one hundred sixty five
countries. That is why not only the bilateral trade arrangements with China
have stopped, but the global economic system has also fallen.
In this
situation, coronavirus has started to have serious negative effects in some
sectors of Bangladesh, said traders in the country.
This was
stated in a report by the Bangladesh Trade and Tariff Commission, an
organization under the Ministry of Commerce.
According to
the report, raw materials have been in crisis in different industries in
Bangladesh due to the closure of imports with China. So production is
shrinking. If the situation is not brought under control quickly, production in
some sectors will fall to zero quota.
The Trade
and Tariff Commission sent the report to the Secretary of Commerce on February
20.
The report
outlines the potential losses in several sectors. And the FBCCI, the top
business organization, has sought government's help in dealing with the losses
in those sectors.
The report highlighted the potential
losses suffered by coronavirus:
Garment accessories
and packaging manufacturers industry
Every year,
Bangladesh imports four billion dollars’ worth of raw materials into garment
accessories and packaging sectors. 40 percent of which comes from China. The
shortage of raw material available at the Corona risk poses a potential for production
to shrink. The businessmen are concerned about the financial loss of Tk 1.5
billion.
Oven sector of
readymade garments
The impact
of the coronavirus has already started to have a negative impact on the
industry. About 60 percent of the raw material comes from China. Which is
almost closed now. Production in this sector may fall to zero quota if the
corona effect continues. The maximum amount of damage will be.
Knit sector of
readymade garments
About 15 to
20 percent of the net sector raw material is imported from China. In addition,
Knit and Dyeing Chemical and accessories account for 80 to 85 percent of
imports from China. The issue of damage to this sector is also ongoing.
Finished leather and
leather goods industry
China
Finished Leather and Leather Goods Industry manufactures about 60 to 65 percent
of the exports to China. The impact of coronavirus on the potential damage to
the sector will be around three thousand crore.
Cosmetics and
Toiletries Industry
The imports
from China to the cosmetics and toiletries sector account for more than 200
containers per month. The value of which is about Tk. 75 crores .Currently, the
import and shipping of these products from China is stopped.
Live and chilled
food industry
The sector
has suffered huge losses due to coronavirus. About 90 percent of Bangladesh's
crabs and cucumbers are exported to China. And the export has been closed since
January 25. Therefore, crabs and crows are being sold at a nominal price in the
local market. About Tk 200 Crores live crabs and crows have died in the last
one month due to failure to export products. If the goods are not able to be
exported, the amount of loss will be more than Tk 350 -450 crores.
The plastic industry
Spare parts
of various machines including raw material and machinery such as injection
molding, printing, extraction machine parts are to be brought from China. The
entire sector is under threat due to the closure of supply of these products.
Electrical
Merchandise Manufacturers Industry
About 80 to
85 percent of the machinery and spare parts imported into Bangladesh come from
China. The sector has been stagnant due to imports and shipping.
Computer &
Computer Accessories Industry
The computer
sector has had a similar effect. Due to the almost dependent on China in this
sector, prices of raw materials, parts, accessories etc. have increased.
Medical Instrument
and Hospital Equipment Manufacturers
About 25
containers are required to be imported annually from Medical Instrument and
Hospital Equipment China. Imports and shipping are currently closed. Financial
loss assessment activities are underway in this sector.
The electronics
industry
From China,
TV, fridge, mobile phone, oven, chargers and electronics account for 80 percent
of the products. Due to the shutdown of imports and shipping, the crisis in the
local market has started to emerge.
Printing industry
About $ 180
crores a year is imported from China, the raw material of the printing
industry. Imports and shipping are currently closed. The financial loss in this
sector is estimated to be about $ 360 crores.
Jute spinners
industry
Bangladesh
exports around Tk 532 crores jute spinners products to China annually. China's
exports and shipping are currently closed, but they are also closed.
Eyeglasses
Almost all
of the raw materials in the glass industry come from China. At present, imports
and shipping from China are closed. The Commission is also working on the
financial loss assessment.
Commerce
Secretary Dr. Md. Zafar Uddin told a media that the government was working with
all stakeholders, including businessmen, to overcome the disadvantages of
coronavirus in the country's trade.
FBCCI
President Sheikh Fazle Fahim said special policies and credit were sought for
the traders from different sectors.Finance Minister AHM Mustafa Kamal recently
received a letter in this regard.
Written and edited by:
MD ZAHIRUL HAQUE
Date:18/3/2020
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