BGMEA urges govt not to hike energy prices

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government not to increase gas and electricity prices, saying the step will have adverse impacts on industries, the economy, and the public as a whole.

Its President Faruque Hassan sent a letter to the Ministry of Power, Energy and Mineral Resources in this regard on Wednesday.

Defying the enormous odds caused by the Covid-19 pandemic, the readymade garment (RMG) industry of Bangladesh has got back on the track of recovering from the fallout though the sector is still facing various challenges, he wrote in the letter.

The industry is already under tremendous pressure from the unusual raw material prices, abnormal shipping costs, and increased fuel prices, he also said.

Any power tariff hike at this moment will add to the woes of the industry as it will lead to an increase in production costs, resulting in the decline of competitiveness. Such a decision will thus hinder the recovery of the industry from the pandemic, read the letter.

It also said the ongoing Russia-Ukraine war has pushed up oil prices in the international market while a recession is feared to hit some European countries, the major export markets of Bangladeshi apparel.

The rise in inflation globally and the resultant fall in real income can have an adverse impact on the market demand for garments.

The hike in gas and electricity prices will not only affect the RMG industry but will also have a serious impact on the public since it will increase the prices of basic commodities and services. It would then be difficult to manage the inflationary pressure.

“Considering the overall situation, we are requesting the government not to increase the prices of gas and electricity,” wrote the BGMEA president in the letter.