BGAPMEA against power price hike proposal

Bangladesh Garments Accessories & Packaging Manufacturers and Exporters Association (BGAPMEA) has opposed the Bangladesh Energy Regulatory Commission’s (BERC) recommendation to increase the bulk electricity price by 58 per cent.

BERC’s technical evaluation committee on Wednesday made the recommendation at a public hearing at the capital’s Biam Auditorium.

However, BGAPMEA has pressed their concerns through a press release on Thursday over the BERC recommendation and said if it gets approved by the government and implemented, it will be catastrophic for the country’s garments sector.

Pressing his concern regarding the issue, BGAPMEA President Moazzem Hossain said, “The operation of these export-oriented industrial establishments completely depends on electricity. If implemented, most of these companies will be not able to bear the additional costs caused by of sudden electricity price hike and many would have no way but to shut down their businesses.”

In the post-Covid economy, prices of garments accessories and packaging products have risen by 40-50 per cent. However, most of the buyers of these products are domestic companies, and they do not pay for the finished goods on time. Hence, we are being forced to enter a competitive market for survival,” said Moazzem.

Along with these issues, the dollar value is abnormally rising and creating a huge gap between the import and export exchange rates, he said.

Over 1900 local companies meet 100 per cent demand for garments, accessories and packaging materials.