Leaders of the country’s readymade garment (RMG) sector have urged the government to resolve ongoing gas and electricity shortages to sustain production, warning that prolonged disruptions could further strain the industry amid global uncertainties.
A delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Mahmud Hasan Khan, met Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud and State Minister Anindya Islam Amit at the Secretariat on Monday.
During the meeting, the BGMEA president said that although buyer confidence had started to recover after the national elections, the ongoing Middle East conflict has once again put pressure on the global market.
He noted that Bangladesh’s apparel sector is now in a vulnerable position, particularly as competing countries remain ahead in ensuring energy security amid the global fuel crunch.
According to the BGMEA, inadequate gas and power supply has already reduced factory production capacity by 25 to 30 per cent.
The situation is particularly acute in industrial hubs such as Gazipur and Ashulia, where frequent load-shedding and shortages of diesel for generators are severely disrupting production and shipment schedules.
The association added that the energy crisis has also driven up raw material prices and transportation costs, further inflating overall production expenses.
Strategic proposals for energy security
To address the situation, the BGMEA placed a set of proposals before the government, including ensuring emergency diesel supply to garment factories through dedicated arrangements at filling stations and prioritising gas connections for small and medium enterprises, particularly those operating boilers with capacities of 300 to 500 kg.
The association also called for equitable gas distribution across industrial zones surrounding Dhaka, as well as the installation of at least two additional floating storage and regasification units (FSRUs) to enhance LNG supply capacity.
In addition, the BGMEA urged the authorities to simplify the installation process of electronic volume corrector (EVC) meters in factories. To ease cost pressures, the association proposed the withdrawal of import duties and value-added tax on imported fuel at both the import and consumer levels.
Focus on renewable energy
The meeting also placed strong emphasis on renewable energy, with the BGMEA seeking substantial duty reductions on solar photovoltaic (PV) equipment to promote green industrialisation.
It proposed cutting existing duties, which currently range from 28.73 per cent to 61.80 per cent, to just 1 per cent on essential items such as solar panels, inverters, DC cables, and battery energy storage systems (BESS).
The minister and the state minister assured that the government would consider the proposals seriously, recognising the RMG sector’s critical contribution to the economy.
They also approved a BGMEA-proposed mechanism to facilitate emergency diesel supply from nearby filling stations on a priority basis.
