Industries in Dhaka, Gazipur and Narayanganj continue to be afflicted by an acute gas crisis, even though Titas Gas Transmission and Distribution Company, the state-owned distributor of natural gas, claims the situation has improved. As reported in the media previously, garments and textiles firms in the industrial belt of these central districts have been suffering from an acute gas crisis for the last few months. “The factories are in dire straits,” a top top-level manager of a group of textile factories in Gazipur told UNB. Most of the industries in Gazipur do not get adequate supply of gas during their operational periods, the most crucial hours during which their machines need to be running. Inadequate supply manifests in the form of low pressure gas flow, he added. FBCCI urges for strengthening oil, gas exploration to ensure uninterrupted supply to industries Low pressure gas flow is akin to low voltage electricity - many appliances won't run, even though an electric charge is present. The textiles group official said that due to the lack of gas supply, production in various factories is being disrupted and they are on the verge of shutting down. In the ongoing gas crisis, important machines like generators and broilers in the dyeing section of the factories are not being run. This has been posing a great risk for the industries to continue their production and pushing them towards huge financial losses. “Many industries would not be able to pay the salaries and festival bonuses during the coming Eid if the situation does not improve,” said an industry owner. Industry insiders said there are more than 300 factories in Kaliakoir and other areas in Gazipur. All these industries have been suffering from the nagging gas crisis and some of them have already suspended their productions. 100% percent prepaid gas meters within four years: Nasrul Hamid Each of the industries has more than 1000 workers. But following the gas crisis, they have to reduce their production target while some of them use CNG at a higher cost to continue their operations. A similar situation is prevailing in the Mirpur, Tongi and Narayanganj areas, said Mohammad Hatem, Executive President, of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). He said that despite increasing the price, the government is not able to provide adequate gas. “Production in garment factories has come down to half due to non-availability of gas. Many buyers meanwhile are pushing for air shipments as the normal schedule for shipments has failed in keeping the commitment,” he said adding, some buyers are asking for discounts on the rates. More gas likely to be found in Sylhet’s Kailashtila field: Nasrul “Some customers are upset and cancel the order in such a situation,” he noted. Recently the Bangladesh Chamber of Industries (BCI) has also alleged that no industry in the country is able to run at its full potential due to the gas crisis. A Bangladesh Chamber Of Industries delegation, led by its president Anwar-ul Alam Chowdhury (Parvez), raised the allegation when it met Industries Minister Nurul Majid Mahmud Humayun at his ministry office. The lone chamber for industries said the prices of electricity and gas were increased on the pretext of increasing prices on the international market in the hope that the government would ensure their continuous supply. “But despite the declining trend of energy prices in the international market, it is being heard that the prices of electricity and gas will be increased again,” BCI said in a statement. Read more: Govt okays import of LNG cargo from Singaporean firm to meet gas demand It demands for a sustainable solution to the problem. “If a long term plan is given to the industrial sector in terms of power and gas supply, it can move forward accordingly." Titas Gas general manager Arpana Islam admitted the gas crisis. But she claimed that the situation has improved to some extent recently following measures to increase the gas supply. She advised to talk to Petrobangla when asked whether there is any possibility in near future to further improve the gas supply situation. Petrobangla official statistics reveal that in the last one month the total gas supply across the country has increased by just 100 million cubic feet per day (MMCFD) or so, leaving a deficit between production and supply of about 1500 mmcfd. The Petrobangla data shows that on February 16 it produced 2671 mmcfd gas including its import from abroad against a demand for more than 4000 mmcfd. The TItas Gas data also shows that about 30 power plants now remained out of operation due to gas shortage. Read more: BNP denounces move to double monthly rent for prepaid gas meters

The nationwide blockades for the past few days have dealt a severe blow to the business landscape of Bangladesh, leaving wholesale markets desolate and causing a week-long economic slump. The impact has spread over areas like New Market, Chandni Market, Eastern Plaza, Elephant Road, Farmgate, Gulistan Market, Shantinagar, Kakrail, Mouchak Market, Rampura-Badda, Mirpur, Dhanmondi, Gulshan-Banani, and Uttara in Dhaka. Nawabpur, Chawkbazar, Islampur, Babubazar, Shankharibazar, Moulvibazar, and Bangabazar, also witnessed a decline in trade activities. Economy buffeted by political unrest amid declining forex reserves: Analysts Dewan Aminul Islam, President of Dhaka New Market Traders’ Association, said that sales were very low during the blockade. “There are no buyers. Small traders are suffering more. If the blockade continues, then we will be the most affected,” he said. Employees at Olympia Bakeryshop in the Baitul Mukarram area similarly report a decline in sales. They have resorted to a shift toward alternative sales strategies within familiar networks. Sabuj, a tea vendor at Paltan intersection, said his shop faced a significant contraction in sales over the past week. “I make TK10-12,000 per day. Now it’s Tk2-3,000," he said. Uncertainty, tension grip students, parents amid raging political crisis Farooq Hasan, President of BGMEA, told UNB “The sector was already suffering from a shortage of buyers in the international market. Now, due to internal political instability, we have to face a more difficult situation. As a result, not only the export sector will be affected, but the entire economy of the country will be affected.  It will also affect the reserves.” Mohammad Hatem, Executive President of BKMEA, expressed concern over escalating losses among traders. “The internal transportation of goods has been severely impeded. Industrial production witnessed a decline.Export sector is especially vulnerable to the ongoing blockade,” he said. The Exporters Association of Bangladesh (EAB) President, Abdus Salam Murshedi, told UNB that due to the blockade, businesses cannot collect the raw materials stuck at various ports due to the transportation crisis. Mahbubul Alam, president of Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), called for a collective reconsideration of the ongoing strike blockade. With economic diversification, transformation, Bangladesh holds potential to achieve more: Swiss Ambassador Reto Renggli “Such programs, if prolonged, may lead to a standstill in the wheels of the economy,” he said. On October 29, a hartal was observed across the country called by BNP and other like-minded opposition parties. After the three-day blockade on October 31, the blockade continued on November 5 and 6, and after the two-day blockade, it continued on November 8 and 9 with a one-day break.

The Centre for Policy Dialogue (CPD) on Sunday (October 8, 2023), based on research of living expenses, recommended minimum wage of Tk 17,568, at the entry level, for export-oriented apparel industries. Currently, the minimum wage for garment workers, set by the wage board on December 1, 2018, stands at Tk 8,000 – a sum frequently scrutinised, particularly given the prevailing economic crisis. Read: Lack of awareness a serious risk on pollution: CPD CPD said, if the foreign buyers pay an additional 7 cents per apparel product, factory owners will not be under pressure to pay this wage. The CPD made this proposal at the minimum wage revision, monitoring, and recommendation dialogue for the garment sector. The event was held at a hotel in Dhaka’s Gulshan. CPD Research Director Khondokar Golam Moazzem unveiled the proposal. He explained that the proposed increase in minimum wage has been made through findings from a comprehensive survey on the garment sector, conducted by CPD. The research institute said that they are making the proposal after surveying 228 workers in 76 factories. The CPD research director and senior research assistant Tamim Ahmed presented the keynote paper at the event. Read: Bangladesh will need $10 billion annually to import primary fuel for power generation: CPD BGMEA President Faruque Hassan, BKMEA Executive President Mohammad Hatim, Owners’ Representative in Minimum Wage Board and former president of BGMEA Siddikur Rahman, Minimum Wage Board Workers’ Representative Sirajul Islam, among others, were present at the event. The government set a new minimum wage board on April 10, 2023, tasked with determining the new minimum wage for the RMG industry through discussions at the tripartite level. The board has already met several times, and the new minimum wage is likely to be finalised within the next month. Read: It is the ‘profession’ of TIB and CPD to find loopholes in budget, Hasan Mahmud says The issue of minimum wage is immensely important, particularly given that it has a substantial impact on the RMG industry’s overall competitiveness and the livelihood of workers. Hence, it is crucial to examine the current structure of wages and to determine a new wage in a way that allows workers to have a fair minimum wage.  

The Ministry of Finance has released cash incentives of Tk1,000 crore for Bangladesh's export-oriented knitwear sector. The ministry took the decision 11 days after receiving an application of Bangladesh Knitwear Manufacturers and Exporters Association's (BKMEA) for financial support for payment of salary and Eid bonus ahead of Eid-ul-Fitr. Read: Bangladesh Bank has revolutionised digitalisation of financial sector: Dr Atiur The request for cash assistance was made to the government on March 30 in a letter signed by the BKMEA president AKM Salim Osman. The letter stated that if the financial assistance is not given, the export sector may be in extreme trouble over the payment of salary and bonus to the workers before Eid. Bangladesh Bank has been instructed by the Ministry of Finance and the Comptroller General of Accounts to clear the amount of cash assistance. Read More: Dip in US market fails to dent apparel sector's growth momentum.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) wants Tk 1500 crore assistance from the government to pay workers’ bonus and salaries ahead of Eid-ul-Fitr. The knitwear factory owners’ association claimed that the export-oriented sector may be in dire straits over paying workers ahead of Eid if the financial assistance is not provided. BKMEA has sent a letter regarding the financial assistance to the senior secretary at Finance Division, under the Ministry of Finance. The letter, signed by BKMEA President AKM Salim Osman, on March 30 made a request to the government for cash assistance. Read more: Payments to 3,428 garment workers, families approved from Central Fund BKMEA Executive Vice President Muhammad Hatem confirmed the development to UNB today (April 02, 2023). The letter stated that global economy is in an adverse situation due to the Russia-Ukraine war. Bangladesh’s export sector is going through a challenging time during this struggle for survival as well. Due to the ongoing global recession, most factories do not have enough work orders, so production is running at 50 to 60 percent capacity. It has become difficult to pay the workers’ salaries at the end of the month, BKMEA mentioned in the letter. International buyers are also not paying their dues on time for the products already being exported. There is huge pressure regarding paying salaries and Eid bonus this month, the letter added. “In such a situation, it will be very difficult to handle this pressure without the cooperation of the government and the finance department,” BKMEA said. Read More: Selim Osman elected as BKMEA president for 6th term

Multiple audits are not only waste of time and money, but also create audit fatigue making compliance difficult for enterprises, according to BGMEA,  the apex body of the apparel industry. This has led to growing calls for converging the protocols to audit garment factories in the industry, it said. Against such a backdrop, a committee has been formed jointly by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) for working on a unified code of conduct for RMG industry. Read: Bangladesh’s next development phase to depend hugely on industrialisation: BGMEA The leaders of BGMEA and BKMEA held a meeting on Sunday where they had discussions on the issue of unified code of conduct and formed the committee. BGMEA President Faruque Hassan presided over the meeting which was also attended by BGMEA Vice President Shahidullah Azim, Vice President Miran Ali, Director Asif Ashraf, BKMEA Executive President Mohammad Hatem, Vice President Fazlee Shamim Ehsan, Vice President Md. Akhter Hossain Apurbo, and Director Imran Kader Turjo. The 11-member committee headed by BGMEA Vice President Miran Ali will carry out thorough assessment of feasibility of a common code of conduct for social audits including national laws, rules, and policies and international conventions such UNGP along with buyers code of conduct and third-party audit protocols. Read:Monthly RMG production capacity to reach $7/8bn soon: BGMEA The committee will take cognizance of the local context while adhering to local and international principles with utmost consideration. The committee will also engage with international stakeholders including brands, trade associations, academia and social partners to formulate a feasible path to end the audit fatigue.

AKM Selim Osman, member of Parliament (MP) of Narayanganj, has been elected the president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Board of Directors for 2021-23 term. He has been elected as the president of BKMEA for the sixth consecutive term. The elected committee was announced on Monday evening. Read: Swisscontact, BKMEA team up to support Covid-hit RMG workers Mohammad Hatem has been elected as the executive president and Mansur Ahmed as the senior vice-president of the 35-member board. Among those elected as vice-presidents are Fazle Shamim Ehsan, Amal Poddar, Gawhar Siraj Jamil, Akhter Hossain Apurbo and Ashikur Rahman. Besides, Morshed Sarwar Sohail has been elected as the Vice President (Finance). Read: Allow Eid holidays for RMG workers in phases: Quader to BGMEA, BKMEA The election board and election appeal board was formed on 14 August. Former Senior Vice President of FBCCI Mohammad Ali was appointed as the chairman of the election board.

Apparel exporters have expressed their concerns over the rise in yarn prices in the local market. They said retail sales grew sharply in the Europe and the US as stores are opening following mass vaccination in the western countries. As a result a lot of work orders are coming to Bangladesh but unusual increase in yarn prices in the domestic market has made it difficult for the garment manufacturers to take the increased orders, they said. Leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA) expressed their worries during a meeting held at BGMEA office on Sunday. Read: BGMEA requests India to expedite trade through Bangaon-Benapole land port BGMEA President Faruque Hassan chaired the meeting which was attended by BGMEA Vice President Shahidullah Azim, Vice President (Finance) Khandoker Rafiqul Islam, Directors Asif Ashraf, Md. Mohiuddin Rubel, Abdullah Hil Rakib, Rajiv Chowdhury, former Director Ashikur Rahman Tuhin, First Vice President of BKMEA Mohammad Hatem, Director Fazlee Shamim Ehsan, and BTTLMEA Chairman M Shahadat Hossain. They said the local mills are increasing yarn prices every day and providing proforma invoice (PI) with a short time limit which makes it difficult to open LC in such a short time. Moreover, it takes around 15 days to confirm orders. As a result, apparel manufactures could not take many of the offered orders despite having capacity. Even many factories are taking work orders under breakeven point only to stay in business. Buyers do not increase apparel prices as they only look at FOB. The problem is impacting the competitiveness of Bangladesh’s RMG industry. Read: BGMEA urges buyers not to penalise suppliers for lockdown-caused delays In the meeting the leaders had discussion on ways of addressing the problems being faced by the apparel sector. It was decided in the meeting that a press conference will be organised soon to share how the yarn price increase is impacting the apparel sector. They have also decided to hold talks with the government policy makers to ensure yarns at reasonable prices.

Swisscontact and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have signed an agreement for the economic rehabilitation of readymade garments (RMG) workers amid the pandemic. Sarathi-Progress through Financial Inclusion, a development project of Swisscontact Bangladesh, on Monday signed the agreement with BKMEA to support apparel workers and factories that are still reeling from the disruptions brought about by the pandemic. Through this collaboration, 400 RMG workers will receive a portion of the wage subsidy. Many factories will be forced to partially or entirely stop operation in the coming months if they do not receive more production orders from the international brands. This will result in more layoffs in the apparel sector. Also read: Swisscontact, BKMEA team up to support Covid-hit RMG workers So, Sarathi will collaborate with BKMEA to identify small and medium RMG factories, who are struggling to receive production orders amid the pandemic.  And BKMEA will help Sarathi identify the struggling factories based on specific selection criteria and grant them partial wage subsidy, enabling them to retain their entire workforce. BKMEA Vice-President Mohammad Hatem and Sarathi Team Leader Syeda Ishrat Fatema signed the agreement. Also read: RMG worker ‘gang raped’ in Gazipur   To date, Sarathi has engaged four commercial banks to digitise the wage payment system of 49 RMG factories; and through its interventions, 76,000 RMG workers are receiving their salaries in their bank accounts and have access to banking products and services. Also, 17,000 RMG workers have received financial literacy training and 200,000 people were reached through mass awareness campaigns conducted by Sarathi.

An online webinar titled “Sarathi- Progress through Financial Inclusion: Knowledge Sharing Event” was held in the city on Monday.