RMG production dips 25-30pc
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed concern over a sharp decline in production capacity, reporting a 25–30 per cent fall in garment manufacturing due to an ongoing shortage of gas and electricity.
Mahmud Hasan Khan raised the issue during a meeting on Monday with Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood and State Minister Aninda Islam Amit at the ministry.
The BGMEA delegation urged urgent government intervention to ensure uninterrupted energy supply to the ready-made garment (RMG) sector, warning that continued disruptions could undermine global competitiveness.
Mahmud Hasan Khan noted that although buyer confidence had improved following the national election, the industry is now facing renewed vulnerabilities linked to the ongoing Middle East conflict.
He said neighbouring countries continue to maintain stronger energy security, placing Bangladesh’s key export sector at a competitive disadvantage.
The impact has been particularly severe in industrial hubs such as Gazipur and Ashulia, where load-shedding and diesel shortages for generators are disrupting production lines and delaying export shipments, he added.
He further warned that the energy crisis, combined with rising raw material and transport costs, has significantly increased overall production expenses.
To address the situation, the BGMEA delegation submitted several proposals to the ministry. They are Emergency diesel access, equitable gas distribution, infrastructure and automation, tax exemptions.
They urges for special arrangements for rapid supply of diesel from filling stations to RMG factories, emergency gas connections for small and medium enterprises (SMEs) with boiler capacities of 300–500 kg, and fair distribution across industrial zones near the capital, acceleration of two additional Floating Storage Regasification Units (FSRUs) and simplified rollout of Electronic Volume Corrector (EVC) metres, removal of all taxes and VAT on imported fuel at both import and consumer levels to reduce production costs and ease subsidy pressures, The association also called for a policy shift towards green energy.
It proposed reducing import duties on key solar photovoltaic components — currently ranging from 28.73 per cent to 61.80 per cent — to a nominal 1 per cent. These include solar panels, inverters, DC cables and Battery Energy Storage Systems (BESS).
The minister and state minister acknowledged the critical role of the RMG sector in the national economy and assured the delegation that measures are being taken to address the energy shortage.
As an immediate relief step, the government approved a BGMEA-designed mechanism to facilitate emergency diesel supply 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.
