The BGMEA president said that all industry stakeholders must make coordinated efforts to deal with the current situation
Expressing concern over the recent gas price hike for industries, RMG makers have urged the government to lift gas import tariffs and adopt a number of measures including cutting off illegal connections.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has also asked the authorities to reduce system loss in gas transmission, regulate gas price after terminating illegal connections, ensure uninterrupted gas and electricity supply to industries and determine rational prices for gas and electricity.
Faruque Hassan, president of the apex apparel makers’ trade body, laid out the recommendations yesterday at a press conference held at the BGMEA building in Chattogram.
“I also think long-term contracts should be given importance in LNG imports,” he further suggested.
The government on 18 January hiked gas prices for power, industries, and commercial (hotel and restaurant) sectors up to 179% to go into effect from February.
“In the current context, the industry cannot bear the burden of additional costs,” Faruque Hassan said and urged the government to consider the export-oriented sector’s contribution to the country’s economy and prioritise it in determining sector-wise gas supply.
“Our production cost has increased due to the recent increase in gas prices. Gas price has increased by 150% compared to 2022,” he said, adding that the cooperation of all industry stakeholders is necessary to navigate the situation.
The BGMEA president pointed out that yarn price has increased by 62% in the last one and a half years, the container rent has increased by 350%-450%, the cost of dyes and chemicals has risen by 60%, the wages have increased by 7.5% in the beginning of last year, and the production cost in the garment industry has increased by 45% in the last 5 years.
The BGMEA chief also requested the government to reduce source tax on the ready-made garment industry to help reduce production costs and increase competitiveness of the industry.
The first vice president of BGMEA Syed Nazrul Islam, Vice President Shahidullah Azim, Rakibul Alam Chowdhury, Director Asif Ashraf, Md Mohiuddin Rubel, Md Hasan (Jackie), Md Ehsanul Haque, former vice president Nasir Uddin Chowdhury, Mohammad Nasir and AM Chowdhury Salim spoke at the event among others.
