Wednesday, April 26, 2006

Textiles: Power shortages hit Bangladesh's readymade garment industry

Bangladesh's readymade garment (RMG) sector is facing severe crisis due to inadequate and irregular power supply that pushed the potential export-oriented sector to cut off its production by at least 30 percent on a regular basis since February.

Tipu Munshi, President of Bangladesh Garments Manufacturer and Exporter's Association (BGMEA) was quoted by local daily The Independent, "We are forced to stop our production due to frequent power interruptions resulting production loss by about 30 percent of our total production."

Xinhua reports that the BGMEA has submitted an 8-point plan with State Minister for Power Iqbal Hasan Mahmood.

Suggestions include introducing a relatively lower and flat power tariff dealing with the existing peak and off-peak hour rates, issuing notice prior to the start of load-shedding and installing PFI (power factor improvement) devices at the garment factories by the government and allowing factories to consume up to 75 kilowatt electricity without any installing and sub-stations.