Bangladesh’s export-oriented apparel sector has been hit by a power crisis. Production in many readymade garment factories has dropped by at least 40 per cent after the gas and electricity supply situation deteriorated sharply in recent weeks.

Exporters are facing trouble producing the existing orders due to the shortage of electricity. They fear that if Bangladesh cannot produce and deliver the current orders on time, the confidence of international buyers will also decline amid a falling demand for textile products in the global market.

Bangladesh’s garment exports fell seven per cent in September 2022 for the first time in 13 months. In the midst of the slide in foreign currency reserves, both export earnings and remittance inflows decreased significantly in September 2022.

Demand for diesel is increasing in the readymade garment sector as factory owners are forced to use generators to keep production uninterrupted in their units amid frequent and prolonged power cuts.

Production in spinning and dying mills has decreased by more than 50 per cent, which has created a shortage of fabric for the knitwear sector. Earnings of workers have decreased as the energy shortage has squeezed the scope for overtime duty. Bangladesh exporters fear that if the shortage of gas and electricity in the industry continues, Bangladesh will lose its share of orders being diverted from China.