Hike in energy price hurting garment makers in Bangladesh

Textile makers of Bangladesh are under pressure after the recent hike in gas and electricity tariffs as it would increase their production cost and would hence reduce the competitiveness of their products in the global market.

The Bangladeshi textile and garment manufacturing sector was already disturbed due to months-long political unrest and euro devaluation.

The prices of gas and power rose by 26.29% and 2.93% respectively which would cause the production cost to increase further, said Abdus Salam Murshedy, president of Exporters Association President. He added that the export earnings are already declining and this latest hike would just worsen the condition.

Dhaka Chamber of Commerce and Industry (DCCI) opined that FDI inflow to Bangladesh would further be affected as foreign investors hesitate to invest when there is utility crisis going on.

The biggest users of power are textile and garment industries and their growth would be majorly affected with the high prices of power. DCCI urged the government to reconsider this decision for industrial, trade and economic growth in Bangladesh.

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