Apparel makers want smooth supply of energy at predictable rates

Apparel manufacturers and stakeholders concerned have urged the government to ensure smooth supply of energy at rates with long-term predictability for further growth of the country's textile and clothing sector.
They also stressed the need for taking measures to ensure efficient functioning of the country's seaports and Dhaka airport, simplify banking and tax regulations and continue providing cash incentive for exploration of new markets, among others.
They put forward the demands at a roundtable on 'Current Situation of the Garment Industry and Way Out' at a city hotel, organised by Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
BGMEA president Md Siddiqur Rahman presided over the meeting while its vice president Mohammed Nasir presented the keynote paper.
Commerce minister Tofail Ahmed, shipping minister Shahjahan Khan, state minister for foreign affairs Shahriar Alam, state minister for power, energy and mineral resources Nasrul Hamid, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Shafiul Islam Mohiuddin and National Board of Revenue chairman Nojibur Rahman, among others, took part in the discussion.
"We want price predictability of electricity and gas as we plan for a long time in our business," Tapan Chowdhury, president of Bangladesh Textile Mills Association (BTMA), told the meeting, arguing that frequent price hike of electricity and gas hampers the business plans.
Appreciating the policy supports for flourishing the primary sector, he urged the government to continue the cash incentive for the sector.
Distinguished fellow of Centre for Policy Dialogue (CPD), a civil society think tank, Mustafizur Rahman said the garment sector was passing through a critical time for different reasons.
"But I want to see that challenge as an opportunity. We have to do some home works for tapping the opportunity," he said, stressing the need for efficient functioning of the seaports in Chittagong, Mongla and Payra, and the Dhaka airport.
The global exports have been recovering at a faster rate, he said, adding that Bangladesh still remained the top choice for the garment retailers and brands. He suggested exploring the Indian, Chinese and Latin American markets as they import garment items worth billions of dollars.
Anisur Rahman Sinha, chairman of Opex Group and former president of BGMEA, said the garment business did not decline, but profitability declined due to image crisis created due to Rana Plaza building collapse while confidence of brands and buyers also eroded.
The global business pattern has changed because of introduction of fast-fashion and fast-market in the western world, he said, suggesting joint efforts by the government and BGMEA to address labour issues to change the perception that workers were not well treated here.
Lauding the garment entrepreneurs for their investment in efficiency to save cost of power and energy, M Tamim, former adviser to the caretaker government, said the price stability is a big factor for the businessmen.
The government should decide whether it would supply electricity from the captive power plants or from the national grid as the prices of power between the two sources vary a lot, he said.
"Accord and Alliance need not to stay here. The government may allow them with few months of time extension for completion of the existing activities," commerce minister Tofail Ahmed said, asking them to leave the country upon completion of the tenure in May next year.
He blamed a section of so-called trade union leaders for tarnishing the image of the country's garment sector in collaboration with their foreign partners.
The garment sector came under the wreath of conspiracy by the national and international players since when the garment makers and the government announced to earn $50 billion by exporting garment items by the end of 2021, he added.
State minister Nasrul Hamid said the gas crisis would go by April next as the government will start importing LNG by then. "By next three years, the government will ensure uninterrupted power supply to the industrial units. So you can plan in this line." He said the government would not give any power connection to the industries if those were not built in the economic zones. The government has already given the power policy up to 2041. "But we cannot say about the prices of power," he said.
The junior minister also said that the government has decided to give household electricity connections within 21 days and industrial connections by 45 days. "We will start giving new gas connections to the industrial units from April next year," he said.
He said the government's investment in the power sector stood at $ 21 billion and the amount needed to be increased to $ 30 billion for ensuring uninterrupted power supply to the industrial units in next three years.
But, the government has been receiving only around $ 200 million as revenue from the garment sector, he said, adding that with paying such low revenue, the garment makers were demanding infrastructures worth $ 3 trillion.

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