Update September 9, 2015

Dhaka 2-27 pm, 24-October, 2020

RMG production cost hike feared

Sumel Sarker

RMG production

RMG production cost hike feared

09 Septembar 2015, Nirapad News: The garments entrepreneurs are apprehending enhancement of their products due to increase of gas and power tariffs.

The president of Exporters Association of Bangladesh (EAB) Abdus Salam Murshedi told banglanews that in 2015-16 fiscal year the export growth increased by 11.96 percent.

He said that the tariff increase of gas and power has given them another blow when they are struggling in the international market with other competitors due to devaluation of euro and other factors.

He commented that this decision has hit they overall export including garments.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mohammad Atiqul Islam thinks that government should give special incentives in gas and power tariffs for this sector.

He told banglanews that the new tariff of gas and power is very much unbearable for this sector. It has brought a new threat to this sector.

Former first president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem informed the media that as soon as the announcement of increase of tariffs of gas and power was made the price of the accessories jumped to 10 percent high.

He told banglanews that as soon as the tariffs of gas and power increased the prices all necessary accessories have also increased.

Cotton price enhanced by 3 cent, all accessories by 10 percent and the dying bill by 7 percent resulting overall increase of 20 percent, he said.

He also asked the top business organization Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) that how they accepted the government’s decision.

“I don’t find any justification of this hike. We will sink if the government does not give any extra concessions to garment sector’, he added.

It may be mentioned here that the tariff of gas was increased by 26.29 percent and power tariff by 2.93 percent at consumer level on last August 29.

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