Bangladesh apparel exports threatened by energy crisis

Energy shortages in Bangladesh, specifically regarding gas and power, are causing international apparel buyers to shift orders to competing nations. Industry leaders warn that these disruptions threaten the country’s export stability by creating fears of production and shipment delays.

Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), stated that some knitwear buyers are shifting up to one-third of their orders to other countries due to concerns over delivery reliability. This loss of confidence follows disruptions at the FSRU and government projections regarding the timeline for resolving the gas crisis.

Md Abdul Hamid, President of the Bangladesh Garment Buying House Association (BGBA), noted that the crisis is occurring just as the global apparel market is slowing. He highlighted that major European clients, including Carrefour and Coopérative U, have reduced their orders, with the latter cutting purchases by 35 per cent compared to the previous year. The primary concern cited by industry officials is not a shift between local factories, but the loss of market share to other countries.