Export earning from the sector was $1663 million in the 2002-03 fiscal year.

The knitwear manufacturers and exporters attributed the less interest of the buyers to last month's incidents in Narayanganj that led to severe disruption in production at the local knitwear factories.

They urged the government to save the export-oriented garment industries from the unstable situation following the unrest. Some 150 garment factories were attacked and one worker was killed in police firing at Narayanganj on November 3.

"It's a matter of concern for the industry as international buyers are not coming to us," Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Monjurul Hoq told a group of journalists yesterday.

He said the unwanted incidents took place after a section of garment workers were misled by a vested quarter. "Still they are disrupting production and export activities despite the factory owners' assurance of meeting the workers' demands.

In a latest incident the owner of another factory was assaulted on Monday, the BKMEA president mentioned.

BKMEA Vice-president Shameem Ahmed said knitwear export would decline this year if the government does not take appropriate steps to improve the situation. "We are now hardly utilise 50 per cent of our production capacity."

Moreover, the manufacturers have already started relocating their factories from Narayanganj following the incident. "Already 18 factories have been shifted to other places," the BKMEA leader said.

However, a follow-up meeting between the BKMEA and workers' leaders will be held next Thursday to discuss the latest situation.