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More than 400 ready-made garment factories have been closed in the country in the three years from July 2023 to June 2026, Commerce Minister Khandaker Abdul Muktadir said. Of these, 282 are members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and 123 are members of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
The Commerce Minister gave this information in response to a question from Member of Parliament Md. Ruhul Amin during the question-and-answer session of the third session of the 13th National Parliament on Thursday (September 3). The session was presided over by Speaker Hafiz Uddin Ahmed Bir Bikram. Member of Parliament Md. Ruhul Amin wants to know how many ready-made garment manufacturing companies have closed in the country, what is the list of their names, what is the reason for the closure and what steps the government has taken to develop the ready-made garment sector? In response, the Commerce Minister said that more than 400 garment factories, including 282 BGMEA and 123 BKMEA member factories, have closed in the three years from July 2023 to June 2026. The process of collecting the list of names of the closed factories is ongoing.
He cited the global COVID-19 situation, Russia-Ukraine war, Israel-Palestine war in the Middle East, international recession, political instability within the country, liquidity crisis in the banking sector due to money laundering, India and Vietnam's Free Trade Agreement (FTA) with Europe, and reluctance of foreign buyers to place export orders to small and medium factories as the main reasons for the closure of factories. Highlighting the steps taken by the government to develop the ready-made garment sector, the minister said that to maintain the market of Bangladesh's ready-made garment industry in the global market, 1.50 percent alternative cash assistance is being provided to the export-oriented domestic textile sector instead of customs bonds and duty draw-backs. In addition to the existing 1.50 percent, a special assistance of 0.50 percent is being provided to textile exporters in the Eurozone.
In addition, the minister announced an additional 3 percent facility for small and medium industries in the export-oriented ready-made garment sector (knit, woven and sweater) and a special cash assistance of 0.30 percent in the ready-made garment sector. In response to another question, the commerce minister said that regular market monitoring and supervision activities are being conducted at the initiative of the commerce ministry to keep commodity prices at a bearable level. A countrywide market campaign is being conducted through a special task force formed at the district level and the National Consumer Rights Protection Department. The minister said that fines and necessary legal measures are being taken against excessive price collection, hoarding, creating artificial crises, not displaying price lists and other irregularities in the market as per the prevailing law. In addition, necessary measures are being taken against syndicates, cartels and collusive activities through the Bangladesh Competition Commission to ensure normal competition in the market.
