BGMEA demands policy support to sustain competitiveness of garment industry

The apparel apex body, BGMEA, on Wednesday demanded policy support from the government to sustain the competitiveness of the country's garment industry amid mounting global economic challenges.

The organisation called for simplifying import and bonded warehouse policies, especially to facilitate raw material imports under Free of Cost (FOC) arrangements, and urged amendments to relevant provisions of the import policy, according to a statement.

A Bangladesh Garment Manufacturers and Exporters Association (BGMEA) delegation, led by its president Mahmud Hasan Khan, in a meeting with commerce minister Khandaker Abdul Muktadir, made the demands held at the secretariat office in the city.

They also demanded withdrawal of the existing 10 per cent income tax deduction on cash incentives to boost garment exports, while seeking steps to normalise trade relations with India and remove barriers to yarn imports and exports through land ports, it added.

They further proposed incorporating BGMEA recommendations into the amendments to the Import Policy (2024-2027) and called for automation of the criteria for granting Commercially Important Person (CIP) status to industry entrepreneurs.

During the meeting, the BGMEA leaders highlighted multiple challenges the industry is currently facing and stressed the need for policy support to ensure sustainable growth.

Quoting Mr Khan, the statement said global economic instability, the impact of the Middle East conflict, and local gas and power shortages are severely disrupting production in the apparel sector.

"Rising raw material prices and increasing production costs have further exacerbated the situation," he said, emphasising that strong policy support and a business-friendly environment are essential for the sector to remain competitive in the global markets.

The meeting also discussed the ongoing activities of the RMG Sustainability Council (RSC) and its role in addressing future industry challenges, said the BGMEA press release.

The BGMEA president clarified the association's position regarding the RSC's mandate, stating that the council was originally established to oversee occupational safety and health (OSH), including building, fire, and electrical safety.

"Social compliance or non-OSH issues like wages, leave, and trade unions are beyond the RSC's core jurisdiction,” he said, adding that expanding its scope into these areas would create unnecessary administrative and financial burdens on the industry, which is undesirable.

He further stressed that any decision in this regard must align with local laws and be taken in consultation with industry stakeholders.

The commerce minister paid a patient hearing to the concerns of the RMG sector and assured that the government would extend all necessary policy supports to help the sector overcome the current challenges and sustain Bangladesh's competitiveness in the global market.

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