The recent decision of the Bangladesh Energy Regulatory Commission to raise the average retail prices of electricity by 5.3 per cent (effective from 1 March) has given rise to apprehensions amongst the apparel exporters of the country of further dip in garment exports.
The price rise takes place at a time when China is grappling with Coronavirus outbreak that has given some opportunity to the garment makers of Bangladesh to bag orders moving out of China.
But now with the hike in the average retail prices of electricity – that is going to add to the already increasing production cost – garment makers are fearful, if they at all, would be able to grab the emerging opportunities.
“Since our business costs have gone up by almost 29.40 per cent in the last 4 years and since prices have steadily gone down, there’s no way we can afford any increase of any sort,” earlier maintained the President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Dr. Rubana Huq speaking to media.
As per the Bangladesh Energy Regulatory Commission, the new rates will inflate the electricity bill of a large industrial unit that has been paying Taka 16.2 million on electricity a month to Taka 17.1 million now.
