Due to the sudden fuel price hike, the country’s Readymade Garment (RMG) production cost is going to increase by at least four percent to five percent, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan.
The country’s industries have not yet recovered from the pandemic losses and this time increasing fuel price is becoming another burden for the industry.
He said this at a press conference held at a city hotel in the capital on Saturday. The BGMEA organized the press conference to highlight the various programmes during the recent visit of the president and the overall situation of the garment industry.
Faruque Hassan said, “Although our export growth has increased in recent months, the industry is indeed going through a challenging period. It should not be forgotten that the factories have not yet recovered from the pandemic losses. On the contrary, the price of yarn has increased by 60 percent in the last one year. Container fares have increased by 350 percent to 500 percent. The cost of dyes and chemicals has increased by 40 percent. Wages rose 8.5 percent earlier this year. Electricity prices have risen 13 percent. Gas prices have also risen.”
“Recently the price of diesel in the country has been increased by 23 percent. In that ratio, the cost of power generation through generators, transportation, and other ancillary raw materials and services will increase, as a result our production costs are increasing by four percent to five percent. In the last two years or so, we have not been able to create much employment. In this situation, business facilitation and policy stability are needed for increasing investment and employment generation,” said Farque Hassan.
Earlier, we saw the government adjusted fuel price when it rose in the global market, but this time sudden price hike is already pushing us backward. As the industry is engaged with a great amount of fuel consumption, BGMEA leaders urged the government to reconsider the fuel price.
The garment sector is not just an industry of a few entrepreneurs and 4 million workers. The country's economy is based on this industry. Various linkage industries are being developed based on the RMG sector. About 50 million people in Bangladesh depend on this industry for their livelihood. The industry continues to play a silent and important role in achieving women’s empowerment, poverty alleviation, achieving the Millennium Development Goals and currently achieving the Sustainable Growth Goals.
For the betterment of the sector, BGMEA leaders sought everyone’s cooperation in the coming days.