Local manufacturers are scrambling for raw materials after a massive fire destroyed imported production inputs at the cargo complex of Dhaka airport on Saturday.

Of them, apparel and pharmaceutical producers face the heaviest burden.

Without the imported raw materials and intermediary goods, apparel-makers risk missing export deadlines ahead of Christmas in Western markets, one of the busiest seasons for Bangladeshi fashion exporters.

Many may have to depend on faster, but more expensive air shipments, offer discounts to compensate for delayed deliveries, and see their profit margins shrink.

In these cases, the financial losses will be more than the value of the destroyed items.

Similarly, burned pharmaceutical raw materials will force drugmakers to import them again, requiring lengthy approvals and new bank financing. Meanwhile, interest accrued during delayed production of life-saving medicines will add to costs.

"Overall, the affected factories will have to delay production for at least two months because of the loss of raw materials and intermediary goods at the airport," said Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Tapan Chowdhury, managing director of Square Pharmaceuticals Ltd, a leading domestic and export drugmaker, said raw materials and machinery worth at least Tk 8 crore were destroyed in the Dhaka airport fire.

He said it will take seven to eight months more to manufacture the drugs by importing the same raw materials again.

The cargo complex at Hazrat Shahjalal International Airport (HSIA) offers refrigerated and temperature-controlled storage, which drugmakers rely on for sensitive ingredients.

SM Noor Hossain, executive director (marketing and commercial) at Labaid Pharmaceuticals Ltd, said his company's active pharmaceutical ingredients, worth Tk 1.5 crore, were imported from India and had been waiting at the cargo complex for one week when those were destroyed.

"Now, we will have to import the same materials again. The financial losses are very high as we will need to borrow from banks at high interest rates. The market value of the finished products would have been Tk 10 crore if they had been manufactured," he said.

Mizanur Rahman, managing director of Fabrica Knit Composite Ltd, said he lost accessories and trims worth more than $2.5 lakh, or around Tk 3 crore, in the airport fire. "These goods will need to be reproduced, which will take at least four weeks to import. We may have to use air shipments or get work orders cancelled," he said.

Faisal Samad, managing director of Surma Garments Ltd, said his garment accessories worth $60,000, or Tk 73 lakh, were also lost.

Samad, who is a BGMEA director, led a meeting with senior customs officials at the airport yesterday. They directed all BGMEA members to collect imported goods on the same day or within 48 hours due to current space constraints at the cargo complex.

Of the imported goods lost in the fire, 59 percent were from China, 9.4 percent from Hong Kong, 5.4 percent from India, 2 percent from South Korea, and the rest from other countries.

BGMEA Senior Vice-President Inamul Haq Khan said 901 garment companies had so far reported losses through the trade body's portal, with preliminary estimates reaching nearly $10 million, or Tk 122 crore.

He said both the number of affected factories and the total losses are likely to rise as more companies register their damage.

Khan himself lost goods worth $36,000, or nearly Tk 44 lakh.

He said although the value of the destroyed raw materials is relatively low, the wider implications are too high as international clothing retailers and brands are now concerned about timely deliveries.

He said exports and imports have resumed at the airport following swift government intervention.

Md Zakir Hossain, secretary general of the Bangladesh Association of Pharmaceutical Industries, said 32 pharmaceutical companies have reported losses of around Tk 200 crore. Total losses of the sector are likely to rise once assessments are complete.

At a press conference in Dhaka yesterday, Mohammad Hatem, president of the Exporters Association of Bangladesh, suggested that losses could reach $1 billion as assessments continue.

From the programme, exporters called for stricter safety measures at Dhaka airport, blaming inadequate safety standards for the fire.

"International clothing retailers and brands have expressed concern," said Showkat Aziz Russell, president of the Bangladesh Textile Mills Association.

"Our textile and garment sectors are being targeted. Setting fires at the airport undermines Bangladesh's reputation abroad and threatens our commitments to international partners," he said.

Md Shahriar, president of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association, said losses in the accessories sector have already crossed Tk 23 crore as companies continue to file reports. He called for timely insurance payments.