Due to shortages of domestic raw materials and higher prices, 10 percent of small scale footwear businesses stops their production, said All Myanmar Cluster Footwear Entrepreneurs’ Organization.
Currently, the production of some compound sole factories declines due to limited power supply and shortages of skilled labours and raw materials in the market, said U Win Min Kyaw, Joint Secretary of All Myanmar Cluster Footwear Entrepreneurs’ Organization. U Win Min Kyaw also said that due to raw material shortages and rising the prices, some of small scale footwear factories stop production and change their jobs for their earning.
Although domestic footwear orders rises, in producing footwears to meet the order in time, they face multiple crisese, said MSME Footwear Entrepreneurs. A sheet of compound for three pairs of footwear costs from Ks.700 to Ks.800 and a sheet of fiber costs from Ks,3,00 to Ks,5,000 as well as other raw material prices increase. Therefore, the production cost for a pair of footwear rises by Ks.300 to Ks.500.
The entrepreneurs have requested the establishment of a separate industrial zone for them in order to produce collectively in one place due to the difficulty of workshop space, storage facilities and distribution difficulties.
In Yangon there are 30,000 footwear entrepreneurs and 132 members of All Myanmar Cluster Footwear Entrepreneurs’ Organization.