BKMEA voices concern over load shedding, rising energy costs

Highlights

• Factories facing 2–3hrs of daily power cuts; up to 6hrs in some areas
• Many factories operating at only 50–60% capacity
• Exports could exceed $50 billion with full production capacity
• Production costs have risen by at least 20%
• Manufacturers unable to pass higher costs on to buyers
• Power situation worse in rural electrification areas

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has expressed concern over the ongoing fuel crisis and load shedding, warning that disruptions are hurting industrial production.

Speaking at a press conference in the capital today (25 April), BKMEA President Mohammad Hatem said factories in several industrial areas are facing two to three hours of power outages daily, reports Prothom Alo.

If full production capacity could be ensured, export earnings from the sector could have exceeded $50 billion annually.

Mohammad Hatem | BKMEA President

“In Ashulia, power was unavailable for more than six hours during the daytime just two days before. A factory typically operates for around 10 hours a day, so such outages naturally disrupt production,” he added.

He noted that the situation is even more severe in areas under rural electrification, such as Bhaluka, Sreepur and Rajendrapur.

The conference was held at Pan Pacific Sonargaon Dhaka ahead of the Bangladesh International Textile, Knitting and Garment Industry Expo (BTKG Expo).

Hatem further said factories have not been able to operate at full capacity for several years, with many now running at just 50-60% capacity. “If full production capacity could be ensured, export earnings from the sector could have exceeded $50 billion annually,” he said.

He also pointed out that production costs in the garment sector have increased by at least 20%, driven by higher fuel prices, increased transportation costs, longer shipment times due to global conflicts, and rising worker’s wages.

“Despite rising costs, we are unable to pass on the additional burden to buyers. While international organisations monitor labour rights, no one ensures whether we are receiving fair prices from buyers,” Hatem said.

The four-day BTKG Expo 2026 will begin in Dhaka on 29 April and continue until 2 May at the International Convention City Bashundhara, with over 1,000 exhibitors from around 30 countries expected to participate.

BKMEA is jointly organising the expo with Inforchain Digital Technology Company Limited.