Bangladesh Knitwear Manufacturers and Exporters Association has raised concerns over rising production costs and ongoing energy shortages, warning that the situation is disrupting factory operations and impacting export performance.
Speaking at a press conference held at the Pan Pacific Sonargaon Dhaka, BKMEA President Mohammad Hatem said production costs in the ready-made garment sector have increased by at least 20% due to higher wages, fuel price hikes, and global supply chain disruptions.
He noted that frequent load shedding—averaging two to three hours daily in industrial zones—is severely affecting productivity. In some areas, such as Ashulia, factories are reportedly receiving as little as six hours of electricity per day, despite requiring around 10 hours for regular operations.
The crisis is particularly acute in industrial hubs like Bhaluka, Sripur, and Rajendrapur, where many factories are now operating at only 50 to 60 percent of their capacity. Hatem added that if full production capacity were maintained, the sector’s annual export earnings could potentially exceed $50 billion.
Rising fuel costs have also driven up transportation expenses, while global uncertainties have increased both shipping time and logistics costs. Despite these challenges, industry leaders say international buyers have yet to adjust pricing to reflect the higher cost of production.
BKMEA Executive President Fazle Shamim Ehsan highlighted weakening global demand, noting that consumers in key markets, including Europe, are cutting back on discretionary spending. As a result, buyers are holding excess inventory, leading to fewer new orders.
He warned that if global economic conditions do not improve, export momentum could weaken further in the coming months, particularly during the peak order season of May and June.
The press conference was organized ahead of the Bangladesh International Textile, Knitting and Garment Industry Expo, which is set to begin at the International Convention City Bashundhara from 29 April and will run until May 2.
