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Small and cottage industries face challenge

Bangladesh’s economy is growing fast with its local backward linkage sector supplying locally produced accessories. But according to a recent report in a local daily, small and cottage industries say that big government plants and manufacturing units are unwilling to acquire such spare parts from the small manufacturing enterprises.

The govt. is procuring such components from big corporations who are importing these parts from abroad.

Small-cottage-industries-need-govt. support-ensure-strong-backward-linkage
Figure: The backward linkage sector is paramount for the country to thrive and acquiring self-capability.

Small manufacturing enterprises say they have obtained their registration from the Bangladesh Small and Cottage Industries Corporation (BSCIC) to meet the standard and specification on demand.

It is worth mentioning that there is no complaint about the product’s quality or any other related issues. Those are reported to meet the standard and specifications on demand.

On the other hand, the govt. is procuring such components from big companies under a policy instrument that was adopted by the ministry of industry in 2010.

Small and cottage industries say that big government plants and manufacturing units are unwilling to acquire locally made spare parts from the small manufacturing enterprises.

In the last 35 years, Tk 6.0 billion worth of orders were placed by these big manufacturing units, which were imported.

Small entrepreneurs of the backward linkage industry say this is directly hurting them and the country’s capability in achieving self-reliance.

Not to mention, decreasing the country’s gross domestic product (GDP), says the report.

Small and cottage industries, including light engineering, cannot prosper with facing such obstacles.

They also urge BSCIC to increase its monitoring of the large government manufacturing units’ inventories for procurement.

Other complaints comprise fragile justifications of lack of quality of their products for rejection of their bids as well as engagement of local agents who irritate or obtain their international bids through conspiracies.

The backward linkage sector is paramount for the country to thrive and acquiring self-capability. At the same time, employing Bangladesh’s large population is one of the biggest achievements of this industry. Ensuring sustainable development of backward linkage through such small manufacturing units has a huge prospect.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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