Knitwear manufacturers in Bangladesh have requested government policy support to mitigate the losses incurred during the violence associated with the quota reform movement. They emphasized that overcoming the crisis is impossible without such support and requested loans at a 2% interest rate for a year.
Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), noted the severe impact of the recent violence on the sector. He highlighted the urgent need for loans primarily to pay workers’ wages to prevent exploitation by vested interest groups. Industry insiders’ estimate that around Tk 5,000 to Tk 6,000 crore is needed to cover one month’s wages for garment industry workers, along with electricity and gas bills.
Typically, manufacturers receive payment only when shipments reach their destinations and documents are processed by banks. However, the quota reform movement has disrupted shipments, forcing many to resort to costly air freight.
Mr. Hatem also urged the central bank to postpone loan installments for the industry until January 2025. Due to the recent turmoil, port authorities have been unable to timely release containers at Chittagong and other ports, causing congestion that may take up to six weeks to resolve.
Despite this, port authorities have levied demurrage charges. Mr. Hatem requested that these charges be waived from July 15 to August 30 to support businesses. He also demanded similar demurrage waivers for BKMEA members as granted to BGMEA members.
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