The impact of halting industrial production is far-reaching
WHEN an industry shuts down, it triggers immediate economic loss, severe supply chain bottlenecks, widespread job insecurity, and local market contraction.
While interest on loans accrues, the living expenses of workers continue, the cost of raw materials persists, and the waiting period for foreign buyers goes on. It is only production that does not continue.
This is precisely the most alarming aspect of the current gas crisis. Production across the majority of the country’s industries has been halted due to a crisis that has persisted for several weeks.
Gas-dependent industries, such as steel, glass, ceramics, cement, and chemicals, are virtually at a standstill.
According to media reports, fifty-seven industrial units of the Meghna Group have shut down.
TK Group’s chemical, edible oil, and cement factories have also shut down. Production at RFL Group has dropped below 50 percent.
Operations have ceased in 525 factories in Gazipur and 171 in Habiganj. More than 150,000 workers used to be employed in the factories of Habiganj are now sitting idle.
These factories produce a wide range of goods, such as edible oil, flour (atta and maida), semolina, sugar, cement, paper, LPG, animal feed, and chemicals.
A halt in production would impact the market; supplies would dwindle in some areas, while upward pressure on prices would mount in others.
The gas crisis would then spill over from industrial zones into the consumer market.
Another danger is even more silent. Even if an industrial enterprise ceases production, its debt obligations do not stop. Bank loan installments do not pause.
Liabilities regarding raw material bills, wages, maintenance, transportation, electricity, and taxes remain.
Industrial entrepreneurs fear that if production remains halted for an unlimited period, even sound enterprises could be pushed towards loan default.
The situation is equally critical regarding exports.
A garment factory does not operate in isolation; it relies on an extensive production chain involving yarn, fabric, dyeing, finishing, chemicals, and transportation. If one segment of this chain halts, the others risk coming to a standstill as well.
Foreign buyers, however, do not share in our gas supply issues; what they require is the delivery of goods on schedule. If we fail to meet deadlines, they may well turn to other countries.
There is little room for sentiment in business; once a buyer shifts their business elsewhere, winning them back is no easy task.
The most critical question is: if this uncertainty becomes the norm, then who will set up new industries in Bangladesh? Therefore, finding a sustainable and immediate solution is urgently needed for the sake of the entire national economy.
