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BGMEA urges government action as energy crisis hits garment output

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has requested government intervention to address an ongoing gas and electricity crisis affecting the country’s ready-made garment (RMG) sector.

Jangoulun Singsit April 20 2026

BGMEA president Mahmud Hasan Khan met with Bangladesh’s Minister for Power, Energy and Mineral Resources, Iqbal Hasan Mahmud, and State Minister Anindya Islam Amit on 13 April 2026 to discuss disruptions hampering production.

Factories in the ready-made garment sector are facing a 25–30% reduction in production capacity as a result of insufficient gas and electricity supply, according to Mahmud Hasan Khan, who also urged the government to promote renewable energy.

The association identified major industrial zones, including Gazipur and Ashulia, as experiencing significant difficulties due to limited diesel availability for generators during periods of load shedding, which disrupts both production and shipment schedules.

The ongoing energy crisis has also led to a rise in raw material prices and transportation expenses, increasing total production costs.

BGMEA’s proposals to address the crisis

The association called for the government to ensure rapid diesel supply under special arrangements through nearby filling stations.

The BGMEA also asked for immediate gas connections and fair distribution, prioritising small and medium enterprises, especially those with boiler capacity between 300 and 500 kilograms, in industrial zones around Dhaka.

Other points included the rapid installation of at least two additional floating storage and regasification units (FSRUs) and simplifying the process for installing electronic volume correctors (EVC) in industrial operations.

The BGMEA requested that authorities remove all import and consumer-level taxes and VAT on imported fuel to minimise production costs and alleviate government subsidies.

In addition, the association has also proposed a reduction of the current high duties ranging from 28.73% to 61.80% on solar panels, inverters, direct current (DC) cables, and battery energy storage systems (BESS), suggesting the rate be lowered to 1%.

In response, Minister Mahmud and State Minister Amit reviewed the association’s recommendations and assured “necessary measures” to address the crisis.

The ministers also approved BGMEA’s suggested framework to expedite diesel supply from filling stations.

Separately, a Huawei Digital Power delegation led by Will Yu, managing director for South Asia Digital Power Business, visited Mahmud Hasan Khan at the BGMEA on 13 April.

Huawei indicated its willingness to support BGMEA through knowledge sharing and prospective collaboration, advancing a more sustainable and energy-efficient RMG sector.

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