Bangladesh’s knitwear manufacturers have voiced concern over persistent power outages and fuel constraints, warning that the disruptions are undermining production and export performance in one of the country’s key industrial sectors.
The concerns were raised by the Bangladesh Knitwear Manufacturers and Exporters Association at a press conference at a city hotel, ahead of the Bangladesh International Textile, Knitting and Garments Industry Expo (BTKGI Expo).
BKMEA President Mohammad Hatem said factories across major industrial zones are facing daily power cuts lasting two to three hours.
In some cases, outages have been more severe — with factories in Ashulia experiencing over six hours of electricity disruption during daytime operations earlier this week.
“Most factories typically run for about 10 hours during the day. If electricity is unavailable during that time, production losses are inevitable,” Hatem said.
He added that the situation is particularly acute in areas served by rural electricity networks, including Valuka, Sreepur and Rajendrapur.
According to BKMEA, the sector has struggled for several years to operate at full capacity, with many factories currently running at just 50–60% utilisation.
Hatem noted that if factories could operate at full capacity, annual export earnings from the knitwear sector could exceed $50 billion. Instead, exports have been declining gradually on a monthly basis.
Costs surge as global pressures mount
Industry leaders also highlighted a sharp rise in production costs, driven by higher fuel prices, increased transport expenses and global supply chain disruptions linked to geopolitical tensions.
Hatem said overall production costs in the ready-made garment sector have risen by at least 20%, citing increased wages, logistics costs and longer shipment times. “Despite higher costs, manufacturers are unable to secure better prices from international buyers,” he said.
He further criticised what he described as an imbalance in oversight, noting that while foreign organisations closely monitor labour standards and workers’ rights in Bangladesh, there is little scrutiny of whether buyers are paying fair prices to suppliers.
Global demand slowdown affecting orders
Responding to questions on export orders, BKMEA Executive President Fazle Shamim Ehsan said global demand has weakened due to inflationary pressures and energy crises in key markets, particularly in Europe.
“Consumers in many countries are cutting back on non-essential spending, which has reduced retail sales. As a result, buyers are holding higher inventories and placing fewer orders,” he said.
While order volumes are typically lower during this period of the year, Ehsan noted a broader slowdown in regular orders as well.
He cautioned that if global economic conditions do not improve in the coming months — particularly by May and June, when orders for the next season usually pick up — export flows in the upcoming cycle could face further pressure.
Industry expo set to begin next week
The four-day BTKGI Expo is scheduled to begin on Wednesday at the International Convention City Bashundhara and will run until May 2. The event is being jointly organised by BKMEA and Infochain Digital Technology.
Organisers said the exhibition will feature more than 1,000 exhibitors from 30 countries, including Canada, China, India, Japan, Vietnam, Turkey and the United Arab Emirates, with around 800 companies participating overall. Spread across nearly 20,000 square metres, the expo will host approximately 1,800 booths.
The event will showcase the latest textile machinery, dyes and chemicals, knitting and weaving technologies, embroidery, cutting and sewing equipment, as well as washing and dry-cleaning innovations.
It will also include three seminars jointly organised by BKMEA, Bangladesh University of Textiles and industry publication Textile Today.
The exhibition will be open to visitors daily from 11:00am to 7:00pm.