BGMEA urges uninterrupted energy supply for RMG sector

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan has urged the government to ensure uninterrupted energy supply to sustain production in the readymade garment (RMG) sector, which accounts for over 80% of the country’s total exports.
He made the call during a meeting between a BGMEA delegation and Power and Energy Minister Iqbal Hassan Mahmood and State Minister Aninda Islam Amit at the ministry in the capital.
During the discussion, BGMEA President Mahmud said buyer confidence had begun to recover after the election, but the ongoing Middle East conflict has once again created challenges for the global market.
He noted that, compared to neighbouring countries with stronger energy security, Bangladesh’s garment industry is in a vulnerable position due to the ongoing energy crisis.
He added that inadequate gas and electricity supply has reduced factory production capacity by 25% to 30%.
In key industrial hubs such as Gazipur and Ashulia, insufficient diesel supply for generators during load shedding has severely disrupted production and shipment schedules.
Rising raw material prices and higher transportation costs – driven by the energy crisis – have further increased overall production costs, he said.
To address the situation, the BGMEA delegation put forward several proposals, including ensuring quick diesel supply to RMG factories from filling stations under special arrangements and providing urgent gas connections, particularly for small and medium industries with boiler capacities of 300-500 kg. 
It also called for equitable gas distribution across industrial zones around Dhaka.
The association proposed the rapid installation of at least two additional floating storage and regasification units (FSRUs) and simplification of the process for installing EVC meters in the industrial sector.
It also urged the withdrawal of import duties, VAT, and consumer-level taxes on imported fuel to reduce production costs and ease the government’s subsidy burden.
To promote environmentally sustainable industrialisation, BGMEA requested special duty concessions on solar photovoltaic (PV) equipment imports. 
It proposed reducing existing duties – currently ranging from 28.73% to 61.80% – to 1% on items such as solar panels, inverters, DC cables, and battery energy storage systems (BESS).
The minister and state minister assured the delegation that necessary steps would be taken, considering the RMG sector’s importance to the national economy.
They also approved BGMEA’s proposed mechanism to facilitate urgent diesel supply from nearby filling stations, according to a press release issued on Monday.