The handmade toy industries supplying their products across the country are witnessing huge lossesas the outbreak of thecoronavirus has dealt a heavy blow to the global supply chain, businessmen said. They said that since raw materials, used to manufacture the handicrafts, come from China which is now suspended, thousands of workers and the cottage industry owners are said to count huge losses in such uncertainty.
Industry insiders sharing difficulties in the current crisis said that they fear incurring hugelossesfrom cancellation of products already manufactured for shipment, 80 percent at home and 20 pc abroad. They said that the toy industries had already invested more than Tk 1,000 croreprior to the deadly coronavirus attack focusing on three main local festivals – PahelaBaishak, Durga Puja and Eid.
Talking to Bangladesh Post, many businessmen explained that the handicrafts are sold mainly during the festivals in the country including PahelaBaishakh, Eid festival and Durga Puja. They have already missed some important business opportunities on the occasion including Bangla New Year (PahelaBaishakh) celebration as the country has declared lockdown to fight against deadly coronavirus.
They also fear that they willlosemiss business opportunities during the Eid and Durga Puja festivals as the COVID-19 is continuing to take toll along with prolonged duration. Saidul, a small vendor selling toys on the streets on a pushcart, said, “I used to buy toys from manufacturers and earn fairly good profit selling them regularly. I have a 5 member-family, and all are dependent on me. Now, I cannot go outside to sell products following the coronavirus outbreak.”
Bangladesh Toy Merchant, Manufacturers and Importers Association President Shahjahan Majumdar told Bangladesh Post that almost 80 percent toys of total demand of the country are currently being manufactured with the efforts of toy makers. “However, all its raw materials come from China,” he said adding that for the coronavirus epidemic, “We could not import raw materials for three months due to the supply chain disruption.”
Businessmen engaged in the sector worry that thousands of workers would starve if this lockdown situation continues. “About one lakh workers in this sector have become unemployed,” Majumdar said. “There are about 1 million people directly and indirectly involved in handicraft toy industry who are now passing critical time to survive,” he said.
He said, “The sector is likely to suffer the worse as many poor families are involved with the industry. Therefore, the government should immediately provide financial incentives in order to save the industry.” Senior Research Fellow of Bangladesh Institute of Development Studies (BIDS) Dr Nazneen Ahmed said, “If the present situation continues for long time, the government needs to provide some initiative packages for lower-middle class families like unemployed people.”
Sheinformed that only 5 percent rich people have more than 50 percent of total national income. Hence, rich people should come forward to help the government as well as helping the private sector. She said, “If we cannot take quick initiatives to tackle this situation, the country will incur huge losses.”
“In the ongoing crisis, the entrepreneurs and businessmen have faced huge losses as they could not sell their products on time,” she added.
She suggests that the government should immediately provide cash financial incentives to all sectors and individuals especially those who are the most affected by the current coronavirus in order to overcome the worsening national and global crisis.
