Export target for 2022-23 may not be achieved: BGMEA
Bangladesh’s garment sector is suffering greatly due to the ongoing energy crisis and high inflation in major markets. The export earnings target from the ready-made garments (RMG) sector for the current financial year (FY 2022-23) is unlikely to be achieved. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has requested the government to ensure uninterrupted gas and electricity supply to the garment factories under special measures in a press conference on Sunday at the BGMEA building in Uttara.
In the press conference, BGMEA President Faruque Hasan said that the garment industry has been affected in two ways due to the gas and electricity crisis. Generators have to be run with diesel in the factory due to massive load shedding. Again the generator is breaking down due to long running time. It increases the production cost.
Faruque said the demand for apparel in key markets such as the EU and the US is falling due to the Ukraine-Russia war, global economic instability and high inflation. Export orders have been decreasing at an alarming rate for the last two months. He fears that exports may decrease at a higher rate this October. In this reality, there is little chance of achieving the export target by the end of the current financial year.
Farooq proposed to the authority to give additional gas to the garment industry by reducing supply to the fertilizer industry, “We can import fertilizers. But, if production in export-oriented factories continues, foreign currencies will continue to flow into the country, which will help in dealing with the dollar crisis.”
In the press conference, BGMEA leaders said that the price of fuel oil has decreased in the world market. They urged to increase oil imports and keep the electricity supply normal.
Informing about other crises and concerns in the garment sector, the BGMEA president requested to reduce the source tax in the garment sector from the current rate of 1 percent to the rate of last financial year considering the overall situation.
In the press conference, the BGMEA president highlighted the initiative of visiting various countries and diplomatic efforts to expand the export market.