Textile and Apparel Industry Faces Catastrophic Crisis in Bangladesh

Bangladesh’s vital textile and garment sector, often hailed as the backbone of the nation’s economy, is now grappling with an unprecedented crisis that threatens its very existence. The sudden and severe gas supply shortage across key industrial hubs has slashed production capacity by nearly half, casting a shadow over billions of dollars in investments and the livelihoods of millions.

In industrial centers like Gazipur, Narayanganj, Bholata, Mouna, and Tongi, the gas crisis has escalated into a full-blown emergency. With uninterrupted gas flow disrupted, numerous factories have been forced to shut down operations. Notably, companies such as Israk Spinning Mills in Gazipur have seen production plummet to less than fifty percent for over a week, with some working under zero gas pressure.

The Bangladesh Knitwear Manufacturers and Exporters Association estimates that the textile and knitting industries require about 2,000 million cubic feet of gas daily. However, current supplies are only around 1,000 million cubic feet, leaving a significant shortfall. The sector, with over 25 billion dollars in investments, accounts for nearly 30 billion dollars of the country’s total export earnings, underscoring its strategic importance.

Mohammad Hatem, president of BKMEA, issued a stark warning: even as the government increased gas prices, the supply remained stagnant. Each spinning mill reportedly incurs an average daily loss of 25 lakh taka due to this crisis, intensifying fears about the industry’s future.

The crisis is not solely due to gas shortages. The industry’s woes are compounded by the fallout from the COVID-19 pandemic, the Russia-Ukraine war, soaring inflation, declining foreign currency reserves, and shifts in US tariff policies. Experts point out that the exchange rate spike from 85 to 122 taka per dollar has further exacerbated the situation, making imports more expensive and destabilizing the industry’s financial footing.

Time is of the essence. Urgent and effective measures are needed to stabilize this critical sector. Failing to act swiftly could plunge Bangladesh’s textile and garment industry into an uncertain future, with far-reaching economic consequences.