Home / Knowledge / News / Apparel/Garments / Clothing sector upset with power & gas crisis
Clothing sector upset with power & gas crisis
20
May '11
The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) leaders recently stated that, Bangladesh's biggest export oriented garment industry is experiencing severe power and gas crunch, which is decelerating production.

Owing to the gas and power crisis, several factories have been lying inoperative for long, which may affect their growth prospects, the BGMEA leaders said.

The garment industry each day requires around 710 megawatt (MW) of power. However, units in the industry have been experiencing power outages of five hours per day.

BGMEA President Md Shafiul Islam Mohiuddin stated that, the gas and power crunch has forced the industry to adapt to use of diesel, following which the industry used 245 million litres of diesel last year, which resulted in a loss of Tk 7600 million.

The garment units in the EPZ accounted for just eight percent of the country's total garment export, while those outside EPZ contributed the rest 92 percent, the BGMEA head said, and called upon the government to ensure uninterrupted power and gas supply for garment units outside EPZ, just like the garment units in the EPZ are enjoying at present.

He claimed that, if the government ensures continuous gas and power supply and other logistic support for the garment industry, the sector's exports have a tendency to cross the US$40 billion mark, soon.

Further while ruling out the requirement of the foreign direct investment in the sector he said that, the garment sector is a boon for Bangladesh and they with local entrepreneurs have the potential to manage it by themselves. However, he stressed on up-gradation of the backward linkage industries.

On providing better facilities to garment workers he said that, they take workers as their partners, and thus, invoked the government to introduce rationing system and provide interest-free loans to construct dormitory for workers.

The BGMEA head has put forth some suggestions before the government which includes making provision for effective power and gas supply, developing the Dhaka-Chittagong highway, subsidising diesel and furnace oil, annulling 15 percent value added tax (VAT) on rent of small and medium sized garment units, renovation of Chittagong Port and reduction in charges at ports.

He also recommended that the government should reduce the bank interest rates, impart training to the workers and develop the Fashion Institute into a University.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 27th Apr 2017

Boohoo's revenue increases 51% to reach £294.6 mn

Fashion e-commerce marketplace Boohoo has recorded a 51 per cent...

Apparel/Garments | On 27th Apr 2017

Amazon catching up with Flipkart in India: RedSeer

Online marketplace Amazon India has caught up with its biggest rival...

Textiles | On 27th Apr 2017

Seven new organisations join ZDHC Programme

The Zero Discharge of Hazardous Chemicals (ZDHC) Programme from...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search