A number of local toy manufacturing companies have halted production since the supply of raw materials from China has been disrupted amid the outbreak of Coronavirus that infected over 78,800 cases with almost 2,800 deaths. Factories are taking no new orders after failing to source raw materials with high prices. If it continues an all-out suspension may hit the toy production sector soon, industry insiders said.
Toy manufacturers in Bangladesh are largely dependent on China as the latter supplies 90 percent raw materials of the factories’ machineries.
As the coronavirus breaks out late last year, there was no supply of raw material this month with price rising by three to four folds. No new letter of credit was opened for a month while traders are buying raw materials with higher prices, said Shahajan Majumdar, president of Bangladesh Toy Manufacturers’ and Importers’ Association.
Ten to 12 factories suspended their production this week, he said adding thast if the scenario continues all factories may close their production temporarily. Micro batteries and other machineries are manufactured locally but its raw materials come from China, Shahajan said.
Crisis of raw materials also hit small apparel and hosiery factories. They collect raw materials from big companies and sometimes from local markets due to their incapability to import. These small factories face a decline in business prompting many to suspend their production. Jamal Ahmed, from the capital’s Signboard, said that buyers are reluctant to raise the prices though they use raw materials with higher prices.
Production capacity has been halved and they are now worried about the payment of workers’ wages before the ensuing Eid, he lamented. Besides, no supply of artificial leather from China leads to a significant production cut in the shoes and bag manufacturing factories in Old Dhaka’s Islambag, Urdu Road and Nazirabazar areas.
A trader said that he has no raw material now and could not buy more even after officering higher prices. Daily wage earners suffer the worst due to decline in production. Labu Ahmed, who is skilled at screen print and sewing, said he had to reject many orders due to large volume of works. “But, I got no work for the last couple of days,” said Labu, who is from the capital’s Rayerbag.
