RMG Output Falls 30% as BGMEA Seeks Urgent Action

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has reported a sharp decline in production, saying output in the ready-made garment (RMG) sector has dropped by 25–30% due to ongoing shortages of gas and electricity.

The concern was raised during a meeting between BGMEA leaders and officials of the Power, Energy and Mineral Resources Ministry on Monday, where the industry body called for immediate government action to ensure an uninterrupted energy supply.

BGMEA President Mahmud Hasan Khan said that although buyer confidence had improved after the recent national election, the sector is now facing fresh challenges linked to global uncertainties, including tensions in the Middle East. He warned that competing countries are maintaining stronger energy security, putting Bangladesh at a disadvantage in the global market.

The situation is particularly severe in key industrial zones such as Gazipur and Ashulia, where frequent load-shedding and a shortage of diesel for generators are disrupting factory operations and delaying export shipments.

He added that rising costs of raw materials and transportation, combined with the energy crisis, have significantly increased production expenses.

To address the situation, BGMEA proposed a set of urgent measures, including ensuring quick access to diesel for factories, fair distribution of gas—especially for small and medium enterprises—and accelerating energy infrastructure projects such as new floating storage regasification units.

The association also urged the government to withdraw taxes and VAT on imported fuel to reduce costs and ease subsidy pressures.

In the longer term, BGMEA called for a shift towards renewable energy, proposing a significant reduction in import duties on solar equipment to encourage wider adoption of clean power solutions in the sector.

Government officials acknowledged the importance of the RMG industry to the national economy and assured that steps are being taken to ease the energy crisis. As an immediate measure, a system has been approved to facilitate emergency diesel supply from nearby filling stations to factories.

Senior government officials and BGMEA leaders attended the meeting.