More than 400 garment factories in Bangladesh have closed between July 2023 and June 2026, Commerce Minister Khandaker Abdul Muktadir told Parliament.

He made the disclosure in response to a question from MP Md Ruhul Amin during the question-answer session of the Jatiya Sangsad. The session was chaired by Speaker Hafiz Uddin Ahmed Bir Bikram.

The minister said 282 member factories of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and 123 member factories of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) had closed during the three-year period.

He added that the government is currently collecting a list of the closed factories.

According to the minister, major reasons behind the closures include the global COVID-19 situation, the Russia-Ukraine war, the Israel-Palestine conflict in the Middle East, the US-Iran conflict, the global economic slowdown, political instability in Bangladesh, liquidity shortages in the banking sector caused by money laundering, and free trade agreements between India, Vietnam and the European Union.

He also cited reluctance among foreign buyers to place export orders with small and medium-sized factories, as buyers increasingly prefer their own monitoring facilities.

Government support measures

The commerce minister said the government has taken several measures to help Bangladesh retain its position in the global apparel market.

These include 1.50% alternative cash assistance for the export-oriented domestic textile sector instead of clean bond and duty drawback facilities, an additional 0.50% special incentive for textile exporters to the eurozone, an additional 3% benefit for small and medium enterprises in the knit, woven and sweater sectors, and a special 0.30% cash incentive for the apparel sector.

Responding to another question from MP Md Shamsur Rahman Shimul Biswas, Muktadir said the Commerce Ministry was regularly monitoring markets to keep commodity prices at tolerable levels.

He said special task forces formed at the district level and the Directorate of National Consumer Rights Protection were conducting nationwide market drives.

Legal action, including fines, is being taken against overcharging, hoarding, creating artificial shortages, failure to display price lists and other irregularities, he said.

The Bangladesh Competition Commission is also taking action against syndicates, cartels and collusive practices to ensure fair competition in the market.

The minister said market monitoring, supervision and enforcement activities would continue and be strengthened as necessary in the public interest.