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DT<br />
<strong>12</strong><br />
Business<br />
SUNDAY, DECEMBER 4, <strong>2016</strong><br />
CAPITAL MARKET SNAPSHOT: PAST WEEK<br />
DSE Broad Index 4,823.0 0.7% ▲ Index 1,149.5 1.4% ▲ 30 Index 1,787.7 1.0% ▲ Turnover in Mn Tk 36,005.0 -9.5% ▼ Turnover in Mn Vol 1,258.1 -0.2% ▼<br />
CSE All Share Index 14,840.6 0.8% ▲ 30 Index 13,245.1 0.3% ▲ Selected Index 9,023.3 0.7% ▲ Turnover in Mn Tk 2,213.3 4.7% ▲ Turnover in Mn Vol 93.9 2.7% ▲<br />
Boiler tube, sanitary business on the wane<br />
• Rafikul Islam<br />
The merchants of boiler tube, ceramic<br />
and sanitary products in<br />
Dhaka are disappointed as they are<br />
facing downturn in their business<br />
over the past two years.<br />
The government ban on gas<br />
connection to industries hit their<br />
business very hard while the<br />
downward trend in Shipping and<br />
Housing business made a big dent<br />
in the sale, said the traders.<br />
Visiting the markets in Suritola,<br />
Siddique Bazaar, Nawabpur Road<br />
and Hazi Osman Gani road area<br />
across the capital, it became evident.<br />
According to the businessmen,<br />
rise in package VAT on shops located<br />
in Dhaka and Chittagong City<br />
Corporations from Tk28,000 from<br />
Tk14,000 for the current fiscal year<br />
is a burden for them.<br />
The retailers and wholesalers<br />
said they supply MS Pipe, Semles,<br />
SS & PVC Pipe, Gas Valve, Steam<br />
Valve, Boiler Fitting, Ceramic and<br />
Sanitary goods to different parts<br />
across the country.<br />
Md Afzal Hossain Hiron, a proprietor<br />
of Afzal Trading Corporation,<br />
said he had been in the business<br />
over the past few years, but<br />
never faced such a situation earlier.<br />
“Once I made a sale between Tk1<br />
lakh and Tk1.5 lakh on a day, but<br />
those are bygone days. Even some<br />
proprietors are forced to close their<br />
shops as they have failed to pay<br />
French retailer Mim accused<br />
of $5m non-payments<br />
• Ibrahim Hossain Ovi<br />
their employees.”<br />
Afzal shared his experience by<br />
saying that over the past couple of<br />
days he could not make any sale<br />
while around Tk1 lakh is spent per<br />
month on shop rent.<br />
“However, recently we have encountered<br />
more business cost than<br />
what we make as profit.”<br />
The trader added that they are<br />
not happy as they did not witness<br />
any proper initiative by the government.<br />
Earlier, “Bebosayi Oikkya Forum”<br />
held rally closing their shops<br />
in Dhaka Mohanagar, protesting<br />
the new VAT law which imposes<br />
Six Bangladesh apparel exporters<br />
have alleged that<br />
French retailer Mim did not<br />
pay them a total of around<br />
$5m as prices of supplied<br />
products, said BGMEA.<br />
“There are complaints<br />
from six BGMEA members<br />
that Mim is in default of<br />
about $5m against the products<br />
delivered to the retailer,”<br />
BGMEA Vice President Mohammed<br />
Nasir told the Dhaka<br />
Tribune yesterday.<br />
“Usually the payment<br />
against LC (letter of credit) is<br />
made within 21 days of shipment<br />
of products. But Mim<br />
failed to make the payments<br />
even in three months of shipment,”<br />
he added.<br />
The exporters who have<br />
made the allegations are Pioneer<br />
Causal Wear Ltd, Ocean<br />
Sweater Ind Ltd, Centex<br />
Fashions Ltd, Intraco Designs<br />
Ltd, Ashulia Apparels Ltd and<br />
Emaz Fashion Wear Ltd.<br />
In a letter, they urged the<br />
Bangladesh Garment Manufacturers<br />
and Exporters Association<br />
(BGMEA) to take steps<br />
to resolve the issue.<br />
They said neither Mim<br />
nor the CM-CIC Market Solutions,<br />
the client’s bank, are<br />
responding to the exporters’<br />
demand of payments.<br />
The LC opening bank is<br />
responsible to pay the prices<br />
of products to suppliers<br />
in international trade as per<br />
agreement.<br />
Under the LC agreement,<br />
the bank will endorse the Bill<br />
of Landing receiving the payment<br />
from the client to get<br />
products delivered.<br />
The exporters said the<br />
non-payment by the retailer<br />
put them in trouble to pay the<br />
bills of raw materials.<br />
The exporters were supposed<br />
to pay the bills of raw materials<br />
on receipt of payments<br />
from buyers as per the conditions<br />
of a back-to-back LC.<br />
“As Mim is yet to pay, it has<br />
become so difficult for us to<br />
run business,” said one of the<br />
six exporters asking not to be<br />
named.<br />
“The suppliers of raw materials<br />
and banks continue to<br />
press us for the bills of raw<br />
materials,” the exporter said.<br />
BGMEA Vice-President Nasir<br />
said they would raise the<br />
issue to the Bangladesh Bank<br />
governor and write to the Bangladesh<br />
embassy in France. He<br />
said they also talked to French<br />
ambassador in Dhaka. •<br />
Traders sit idle at a boiler<br />
tube outlet in Dhaka<br />
recently. The people<br />
involved with the business<br />
say they are passing<br />
sluggish days due to ban<br />
on new gas connections<br />
RAFIKUL ISLAM<br />
a uniform 15% VAT on all types of<br />
products and services.<br />
On condition of anonymity, a<br />
merchant said harassment of buyers<br />
in loading and unloading of<br />
products by the police is also another<br />
reason for the nosedive in sale.<br />
The lawmen are also alleged to<br />
seize products if buyers don’t pay<br />
money as per their demand over<br />
parking van or truck on road to<br />
load products.<br />
Asked about it, Officer-in-<br />
Charge (OC) of Bongshal Police Station<br />
Nur-e-Alam Siddiqui refuted<br />
the allegation.<br />
Md Murad Hossain Tipu, Al-Aksha<br />
Trading proprietor, said the<br />
country’s economic condition is<br />
not well.<br />
The government runs the state<br />
on debt and so the VAT fixed in this<br />
fiscal year has been increased that<br />
has affected general people, added<br />
the trader.<br />
According to Md Shohel Rana of<br />
M/S Ananda Trading, the dullness<br />
on their business is a spillover effect<br />
of global economic recession,<br />
plus nonstop strike by opposition<br />
parties in previous year.<br />
Md Abdus Salam, proprietor of<br />
Green Agency, alleged that some<br />
local businessmen do not pay them<br />
on time. They purchase goods on<br />
credit but get away without paying.<br />
“For this reason, new traders<br />
cannot continue their business.”<br />
However, the country’s ceramic<br />
industry, which has employed<br />
around 5 lakh workers, has so far<br />
invested Tk5,000 crore and witnessed<br />
200% growth in the last five<br />
years, according to Bangladesh Ceramic<br />
Wares Manufacturers Association<br />
(BCWMA).<br />
Currently, there are over 50 local<br />
industries that meet the local demands<br />
and export products to many<br />
other countries. All these industries<br />
are involved mainly in production of<br />
tableware, tiles and sanitary ware.<br />
Ceramic trader Rony Sarker<br />
said: “We have no language in this<br />
regard. We are facing much trouble<br />
with our families over the business<br />
downturn. We are waiting to get<br />
the happy moment back.”<br />
Bangladesh Pipe & Tube-well<br />
Merchant’s Association President<br />
SM Akkas told the Dhaka Tribune<br />
that the recession is actually going<br />
on in all business sectors across the<br />
country.<br />
He also said increase in VAT,<br />
License fee and price of different<br />
goods put a heavy pressure on their<br />
business.<br />
Akkas, however, called for proper<br />
government initiative to ensure<br />
a favourable business climate.<br />
“We are hopeful that our business<br />
will thrive again.” •
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