The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has voiced concern over a significant “drop” in production capacity, reporting a 25-30% decline in garment manufacturing due to the ongoing scarcity of gas and electricity.
BGMEA President Mahmud Hasan Khan highlighted these figures during a meeting with Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood and State Minister Aninda Islam Amit at the ministry on Monday.
The BGMEA delegation sought urgent government intervention to ensure an uninterrupted energy supply to the ready-made garment (RMG) sector to sustain global competitiveness.
Production hit by severe shortages
Mahmud Hasan Khan noted that while buyer confidence had improved following the national election, the industry is now grappling with fresh vulnerabilities linked to the Middle East conflict.
He emphasised that neighbouring countries are maintaining superior energy security, leaving Bangladesh’s primary export sector at a disadvantage.
The impact is particularly severe in industrial hubs such as Gazipur and Ashulia, where heavy load-shedding and a shortage of diesel for generators are stalling production lines and delaying international shipments, the BGMEA chief said.
This energy crisis, coupled with rising raw material and transport costs, has significantly increased the overall cost of production, he said.
Strategic proposals for relief
To mitigate the crisis, the BGMEA delegation presented several key proposals to the ministry.
Emergency Diesel Access: Implementing special arrangements for the rapid delivery of diesel from filling stations to RMG factories.
Equitable Gas Distribution: Providing emergency gas connections for small and medium enterprises (SMEs) with boiler capacities of 300-500 kg and ensuring fair distribution across industrial zones near the capital.
Infrastructure and Automation: Accelerating the installation of two additional Floating Storage Regasification Units (FSRUs) and simplifying the rollout of Electronic Volume Corrector (EVC) metres.
Tax Exemptions: Removing all taxes and VAT on imported fuel at both import and consumer levels to lower production costs and reduce the government's subsidy burden.
Transition to Renewable Energy:
The association also called for a major policy shift towards green energy. They proposed slashing import duties on essential solar PV components – currently ranging from 28.73% to 61.80% -- to a nominal 1%. This will include solar panels, inverters, DC cables, and Battery Energy Storage Systems (BESS).
Government response
The minister and state minister acknowledged the RMG sector's critical role in the national economy and assured the delegation that steps are being taken to address the energy shortfall. As an immediate relief measure, the government approved a BGMEA-designed format to facilitate the emergency supply of diesel from nearby filling stations to factories.
The meeting was also attended by Energy Secretary Mohammad Saiful Islam, BGMEA First Vice President Selim Rahman, and Vice President (Finance) Mizanur Rahman.