Bangladesh's apparel manufacturers are increasingly worried about their survival as an acute gas shortage, frequent power outages, weakening demand from the European Union (EU), and persistent price pressure from buyers continue to erode their competitiveness and squeeze profit margins.
Industry leaders say the prolonged energy crisis has sharply increased production costs, while slowing orders from the country's largest export market have further worsened the situation.
Managing Director of Softex Sweater Industries Md Rezwan Selim tells The Financial Express that his factory, like many others, has been experiencing severe gas shortages, while load-shedding occurs three to four times a day, forcing manufacturers to rely heavily on diesel generators.
"Our factory spends nearly Tk 50,000 a day on diesel because of frequent power outages. At the same time, we pay a monthly gas bill of around Tk 1.2 million despite receiving almost no supply," he says.
He says the industry's difficulties have been compounded by sluggish demand in the EU, where consumers and businesses are grappling with economic uncertainties amid multiple global conflicts.
"The EU market is weakening as European economies are also under pressure from several ongoing wars. As a result, our export orders are declining almost every month," he notes.
He says Bangladesh's apparel exports currently stand at around $35 billion, but exporters are surprised to see the government has set an export target of $44 billion for the sector for this fiscal year.
"We are surprised that such ambitious targets are being set when factories are not receiving adequate gas and electricity. Without ensuring uninterrupted energy supply, it will be extremely difficult to achieve higher export growth," he adds.
Selim says businesses expected an improvement after the government assured them of increased gas supply, but the situation has yet to improve.
Despite the challenges, he expresses cautious optimism about the US market, saying stronger economic activities surrounding the 2026 FIFA World Cup could support consumer spending and apparel demand.
Seeking anonymity, a leading apparel exporter based in Narayanganj says the ongoing gas crisis has forced the factory to purchase between 7,000 and 10,000 cubic metres of Liquefied Petroleum Gas (LPG) every day, depending on production requirements.
"Earlier, we used electricity supplied by the Bangladesh Rural Electrification Board alongside gas-based captive power. Now, we rely almost entirely on LPG to keep our operations running," he says.
According to the exporter, around 35 per cent of the factory's captive power generation now depends on LPG to maintain uninterrupted production and meet buyers' delivery schedules.
"The shift to LPG has significantly increased our operating costs and reduced our competitiveness in the global market."
Industry insiders warn that unless gas and electricity supply improves quickly and global demand recovers, many export-oriented manufacturers may struggle to remain financially viable in the coming months.
Former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan tells The Financial Express that virtually every factory is struggling with an acute gas shortage as pipeline pressure has dropped sharply.
"Factories operating boilers, particularly for dyeing and finishing, are facing the worst situation," he says.
Questioning the government's ambitious export target for the current fiscal year, he says, "When utility supply remains inadequate, how can the government expect the sector to achieve a 15 per cent growth?"
He says the global demand for apparel remained weak last year and Bangladesh, according to global trade data, has already lost its position as the world's second-largest apparel exporter to Vietnam during the January-May period of this year.
"Order inflows have slowed significantly, while buyers are forcing exporters to accept lower prices. Under these circumstances, achieving such a high growth target will be extremely challenging," he says.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem says the prolonged gas crisis has severely disrupted industrial production, with many factories receiving no gas for the past five days and some production lines remaining idle for around 10 days.
Exporters are also facing banking-related constraints and the impacts of US tariff measures, he adds.
"The government must urgently resolve the gas crisis, improve banking support, and address external trade challenges. Without tackling these issues, the industry's survival will become increasingly difficult. However, stronger growth is still achievable if gas and electricity supply improves significantly."
He also says Bangladeshi exporters are facing increasingly uneven competition in global markets.
"Bangladesh is gradually losing its market share in the EU, while India and Vietnam are strengthening their positions after securing free trade agreements with the bloc," he says.
Hatem alleges that buyers are taking advantage of weak demand by pushing exporters to accept lower prices.
"Last year, we exported a T-shirt to a European buyer at $1.55. The same buyer is now offering five cents less for the identical product despite higher production costs," he says.
"This is an extremely challenging period. Many businesses may not survive unless the situation improves substantially and the government extends adequate policy support."
Meanwhile, Titas Gas Transmission and Distribution has directed all CNG filling stations under its jurisdiction to immediately stop selling or supplying natural gas into unauthorised open cylinders or cascade cylinders transported by covered vans and trucks instead of motor vehicles.
The state-owned gas distributor warns that any station found violating the directive would face a suspension of gas supply, along with other legal action.
The directive was issued in a letter sent on Sunday by Titas' Tangail zonal sales office to the managing directors or owners of 21 CNG refuelling stations in the Tangail and Gazipur regions.
According to the letter, compressed natural gas (CNG) is supplied exclusively as fuel for motor vehicles. However, Titas recently found that some filling stations were supplying gas to unauthorised open cylinders and cascade cylinders carried by covered vans and trucks instead of dispensing it to vehicles.
The company said such practices violated the Bangladesh Gas Act 2010 and the Gas Marketing Rules 2026, posing serious safety risks.
It also said a joint monitoring team had been formed to conduct regular inspections of filling stations.
Titas sought the cooperation of CNG station operators in ensuring compliance with the regulations and maintaining safe and uninterrupted customer service.
However, officials of the Bangladesh Textile Mills Association (BTMA) have expressed concern over the directive, saying its implementation could force many industrial units to suspend production.
They say whenever pipeline gas supply is disrupted, factory owners purchase CNG - often at nearly double the normal price - from areas where it is available to keep their boilers running.
In the wake of Titas' directive, however, industries are no longer able to procure CNG from any source.
As a result, boilers at many factories located in low-pressure areas have already been shut down, they say.
An entrepreneur from Rupganj says the area is also experiencing seven to eight hours of load-shedding every day, further disrupting production.
According to BTMA sources, the crisis is particularly severe in the Rupganj industrial belt, where a majority of factories are facing production disruptions.
The association says government intervention is urgently needed to resolve the situation.
BTMA representatives are scheduled to meet the minister for power, energy and mineral resources today (Tuesday) to discuss the crisis.
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