2,000 knitwear units in Gaibandha limping

Worried but still at work... An owner of a small knitwear unit, set up at his dwelling shed near Salmara railway station in Gobindaganj, is processing wool to make warn clothes. PHOTO: STAR

"Neither banks nor any government agency gives us loan", he lamented while talking to this correspondent at his small factory cum dwelling house at Saktipur village in Gobindaganj upazila in Gaibandha district.

Same is the condition of owners of about 2000 small knitting units in the upazila, which grew in the poverty-stricken area in a decade.

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They produce cheap warm clothes which are supplied to other districts and to the capital.

"The problem was not so acute earlier because the market was good. Now we face competition from others but we can not develop our units because of lack of funds", young Jobed Hossain said. Our 'Angura'a brand of winter cloths are still acclaimed in markets, he added.

The cottage industry grew in last one decade in 22 villages in Kochashaer and Salmara unions in Gobindagnaj upazila. Seeking their success, many people in Sonatola upazil in Bogra district and in some other areas took to the business, he said.

In Kochashaer and Salmara unions, almost every household possesses at least one knitting machine. There are people who own more, even 25 machines.

A man, once engaged as labourer in a unit, ca own a machine after four to five years.

The products earned them good profit earlier. But now it has become highly competitive. So prices have fallen.

Now, many of the owners cannot afford the production cost due to low market price. On the other hand, prices of inputs and labour cost are increasing day by day, the owners said.

Earlier, a sweater or a cardigan brought a profit of around Tk 100. It has come down to Tk 20-25, which does not cover the labour cost, if counted, they said.

To survive, most of the small owners themselves do the whole lot of work without employing labourer to cut the production cost, they said.

Landless Jobed Hossain has set up the machine in his dwelling house. Earlier, he was a labourer in another factory. After five years, he purchased a knitting machine at Tk 20,000.

Recently, he tried to take loan from a private sector bank and BSCIC (Bangladesh Small and Cottage Industries Corporation). But no one provided him with loan as he has no land to mortgage. He is contemplating borrowing money from local moneylenders at Tk 20 per cent interest monthly.

"I bought the machine with great hopes but now I am nearly ruined after paying interest to the moneylender", said Jobed Hossain.

The small industries can survive with marginal profit if banks provide them with soft loan, he added.

Mizanur Rahman, President of Nayarhat Hosiery Owner's Association, said hosiery production has increased as such cottage industries have been set up elsewhere in the country. The products can be improved with a little attention from the government, which can also open up export prospects, he said.

Prices of yarn and other inputs are increasing day by day, he said.

The government can patronise the cottage industry by training the owners and workers in modern technology and helping them in exporting the products. The export prospect is good because of the cheap labour cost compared to other countries, Mizanur Rahman said.