Energy crisis disrupts factory operations, says BKMEA

Energy crisis disrupts factory operations, says BKMEA
The Bangladesh Knitwear Manufacturers and Exporters Association held a press conference at Pan Pacific Sonargaon Dhaka in the capital on Saturday. Photo: Collected

Online Desk

Published: 2026-04-25 21:31:26

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has expressed deep concern over persistent load shedding and rising energy costs, warning that the ongoing situation is significantly affecting industrial output, particularly in the garment sector.

Speaking at a press conference at Pan Pacific Sonargaon Dhaka in the capital on Saturday, BKMEA President Mohammad Hatem said factories in key industrial zones are experiencing frequent power outages, with disruptions lasting two to three hours daily. In some areas, the situation is even more severe.

“In Ashulia, power was unavailable for more than six hours during the daytime just two days ago,” he said, noting that such interruptions are highly disruptive given that most factories operate for around 10 hours a day.

He added that regions under rural electrification, including Bhaluka, Sreepur and Rajendrapur, are facing even longer outages, further hampering production activities.

Mohammad Hatem said many factories have been unable to operate at full capacity for several years, with current utilisation rates hovering between 50 and 60 per cent.

He noted that if uninterrupted production could be ensured, export earnings from the sector could exceed $50 billion annually.

The BKMEA leader also highlighted rising production costs, which he said have increased by at least 20 per cent. Factors contributing to this include higher fuel prices, increased transportation expenses, longer shipping times due to global conflicts, and rising wages.

Despite these cost increases, he said manufacturers are unable to pass the additional burden onto international buyers.

“While labour rights are closely monitored globally, there is little attention on whether exporters are receiving fair prices,” he added.

The press conference was held ahead of the Bangladesh International Textile, Knitting and Garment Industry Expo 2026 (BTKG Expo), scheduled to take place in Dhaka from 29 April to 2 May at the International Convention City Bashundhara in the capital.

The four-day event is expected to feature over 1,000 exhibitors from around 30 countries and is being jointly organised by BKMEA and Inforchain Digital Technology Company Limited.