Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) expressed concern that the recent steep oil price hike is likely to hurt industries and agriculture.
BKMEA in a press release expressed that the record fuel price hike would fuel inflation and industries would lose their competitiveness.
BKMEA said that at a time when the price of fuel oil is on the decline in the global market, the decision to increase the price of fuel oil in our country is shocking. Due to this policy, the export-oriented industries will undoubtedly be under immense pressure.
Although the Ministry of Power, Energy and Mineral Resources has informed that if the situation normalizes, the price of fuel oil will be reconsidered accordingly, nevertheless, the ministry notified on 05 August 22 regarding the abnormal increase in the price of fuel – which will gravely affect the entire readymade garment (RMG) industry of the country, including the main export Knitwear sector of Bangladesh. BKMEA believes that it will create a fatal situation in the sector.
As the oil price hike will directly affect electricity, transport and other sub-sectors without a doubt; which will reduce the competitiveness of the Knitwear sector. As a result, there is a great possibility of facing adverse reactions in the export process of Knitwear and textile industry entrepreneurs of the country.
BKMEA feels that it is urgent to take alternative accounting plans in discussions with the government stakeholders on a timely basis in order to overcome this situation.
On top of that, the increase in tax at source from .50% to 1% in the approved budget of 2022-23 has put the industrialists under severe pressure. Despite all this, the one-off electricity price hike last year and the gas price hike just a few days ago will put a lot of pressure on the government and the entrepreneurs.
In order to maintain the continuous development of the knit industry, BKMEA is requesting to increase the rate of cash assistance for a temporary period.