They said the worsening flood situation across the country especially in Narayanganj where 75 percent knitwear factories are located, has threatened the industry, the second biggest foreign exchange earner after woven garments.

"We may face an export loss of Tk 600 crore as we are failing to maintain shipment in due time because the transport system has collapsed," Fazlul Hoque, president of Bangladesh Knitwear Manu-facturers and Exporters Association (BKMEA) said.

The knitwear manufacturers will also incur an estimated loss of Tk 400 crore as the flood has inundated their factories and warehouses damaging machinery, raw materials and infrastructures, he told a press conference at BKMEA office in Narayanganj.

The BKMEA president apprehended cancellation of orders from the foreign buyers due to shipment failure, which would reduce export income from knitwear products which earned $1.88 billion in the first 11 months of the last fiscal.

He said production in knitwear sector is also facing a setback due to inadequate supply of raw materials and flood-affect workers' thin attendance in factories. "The supply of raw materials has already declined by around 70 percent."

About 300 knitting and another 300 dyeing units in Dhaka, Narayanganj and Savar areas have so far been inundated by the flooding.

The BKMEA chief demanded immediate payment of cash incentives amounting to Tk 500 crore which the government is yet to release.

For ensuring smooth transportation of knitwear products to Chittagong Port during the flood he urged the government to take special measures such as shipping arrangements through the river route from Kanchpur to Chittagong.

Hoque also sought repairing of the damaged road from Panchaboti BSCIC Hosiery Estate to Shashongaon road on urgent basis for easing transportation of export-oriented knitwear products from Narayanganj industrial area.

BKMEA vice-presidents Habibur Rahman and Abdur Rashid, and members Shamsul Haque, Abdur Rahman and GM Haider Ali were present at the press conference.