Over 400 RMG units shut down since July 2023: Minister

More than 400 garment factories have closed down over the three years from July 2023 to June 2026, Commerce Minister Khandakar Abdul Muktadir told Parliament on Thursday (September 3).

Responding to a query from MP Md Ruhul Amin during a question-and-answer session chaired by Speaker Hafiz Uddin Ahmed Bir Bikram, the minister stated that 282 BGMEA member factories and 123 BKMEA member units ceased operations during this period. He added that the compilation of the names of the closed factories remains ongoing.

The minister identified several primary factors behind the closures, including global crises such as the COVID-19 pandemic, the Russia-Ukraine war, conflicts in the Middle East between Israel and Palestine as well as the US and Iran, international economic slowdown, internal political instability, and liquidity shortages in the banking sector caused by money laundering.

He further cited Free Trade Agreements signed by India and Vietnam with Europe, along with foreign buyers preferring not to place orders with small and medium-sized factories for monitoring convenience.

To retain Bangladesh's competitive edge in the global ready-made garment market, the government has introduced several financial incentives. These measures include a 1.50 per cent alternative cash assistance for export-oriented domestic textiles instead of bonded warehouse and duty drawback facilities, an additional 0.50 per cent special support for textile exporters to the Eurozone, a 3.00 per cent additional benefit for small and medium enterprises across knit, woven, and sweater sectors, and a 0.30 per cent special cash incentive for the overall RMG sector.

In response to another question from MP Md Shamsur Rahman Shimul Biswas regarding commodity prices, Commerce Minister Khandakar Abdul Muktadir highlighted ongoing market monitoring and enforcement drives conducted by district-level special task forces and the National Consumer Rights Protection Directorate.

Fines and legal measures are being actively enforced against overcharging, hoarding, artificial supply crunches, and failure to display price lists, while the Bangladesh Competition Commission works to curb syndicates and cartel practices to maintain stable consumer prices.

-SA