BGMEA reports 25–30% drop in garment production amid energy crisis

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BGMEA reports 25–30% drop in garment production amid energy crisis

B Mirror Report:  The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed concern over a significant decline in production capacity, reporting a 25–30% drop in garment manufacturing due to ongoing shortages of gas and electricity.

BGMEA President Mahmud Hasan Khan, leading a delegation, shared the figures during a meeting with the Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood and State Minister Aninda Islam Amit at the ministry yesterday.

He called for urgent government measures to ensure uninterrupted energy supply to the ready-made garment sector to maintain global competitiveness.

The BGMEA chief said that although buyer confidence had improved after the national election, the industry is now facing new pressure due to global geopolitical tensions, including the Middle East conflict.

He noted that competing countries are maintaining better energy security, putting Bangladesh’s export sector at a disadvantage.

Industrial areas such as Gazipur and Ashulia are particularly affected, where load-shedding and shortages of diesel for generators are disrupting production and delaying export shipments.

Rising raw material and transport costs have further increased production expenses, according to BGMEA.

The BGMEA delegation proposed emergency measures including fast-track diesel supply to factories, emergency gas connections for small and medium enterprises with boiler capacities of 300–500 kg, and improved gas distribution in industrial zones near the capital.

They also suggested speeding up the installation of additional floating storage and regasification units (FSRUs), simplifying electronic meter systems, and reducing taxes and VAT on imported fuel to lower production costs.

The minister and state minister acknowledged the importance of the RMG sector and assured the delegation that steps are being taken to address the energy shortage. As an immediate measure, the government approved a BGMEA-designed system to ensure emergency diesel supply from nearby filling stations to factories.

The meeting was attended by senior officials, including the Energy Secretary and BGMEA leaders.

 

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