Gazipur factories ironing garments by hand
The nationwide gas shortage has raised production costs by around 30% as factories turn to diesel generators to maintain lead times
A severe gas shortage is disrupting production across Gazipur's industrial belt, forcing factories to run costly diesel generators, shut gas-dependent units, and resort to manual processes normally done by machines, as exporters struggle to meet delivery deadlines and risk discounts, losses and buyer confidence.
At Sparrow Apparels Ltd, pressing denim is being done by hand because low gas pressure has rendered machines unusable.
"Had the gas pressure been normal, we could easily do denim and finishing work with pressing machines. Now we are doing it manually, slowing down production," said Shawon Islam, managing director of Sparrow Apparels and former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
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Gas pressure falls below operating level
Gazipur has around 2,500 registered export-oriented garment factories, more than 400 of which depend entirely on gas, industry sources said. Textile, dyeing, finishing, denim, knitting and woven units need 7-8 PSI to operate, but pressure at many factories has fallen below 2 PSI, with some meters showing nearly zero during a visit yesterday.
The shortage has raised production costs by around 30% as factories turn to diesel generators to maintain lead times. Dyeing operations at Divine Group and Sadma Group's textile factory have shut, while other gas-dependent units face temporary closures or reduced output.
Gazipur's industrial sector needs around 550 mmcfd of gas daily but receives only about 300 mmcfd, a shortfall of roughly 250 mmcfd, or 45% of demand, according to industry and Titas Gas sources. Tongi BSCIC, Gacha, Basan, Konabari BSCIC, Kashimpur, Gazipur Sadar, Safipur, Chandra in Kaliakair, and Sreepur are among the worst-affected areas.
Although garment factories mainly run on electricity, backward-linkage industries – spinning, dyeing, knitting and finishing – depend heavily on gas, and disruptions there are hitting the wider export chain. BGMEA-member factories are operating 30-35% below full capacity, while overtime is pushing up costs.
"Never before has this industry faced such a big crisis," said Nasir Uddin, managing director of Sadma Group and former BGMEA vice-president, adding that gas pressure in Ashulia, Savar, Gazipur, Kaliakair and Bhaluka often falls to 1 PSI or below, against the 5–6 PSI needed to run factories.
Crisis pushing costs up 30%, jobs at risk
Delayed production is pushing up shipment costs: exporters are spending around $50,000 extra on air freight and offering buyers discounts of up to 20-25% for late deliveries, while owners must keep paying workers even when production stops.
"I have 4,000 workers sitting idle at my two factories. I am trying to keep one running with diesel, but the textile factory is shut because there is no gas. We have to pay workers despite having no production or exports. I am losing Tk50 lakh a day," Uddin said.
Lead times run around 70 days for garments made with local fabric, against up to 91 days for imported fabric, with overland fabric imports from India suspended and container shortages adding further delays.
Operators said foreign buyers are increasingly concerned about timely deliveries, with some weighing alternative sourcing countries, and warned of job losses as units shut or cut hours.
A Titas Gas official in Gazipur, speaking anonymously, confirmed the 45% shortfall. However, Titas Gas Gazipur Sales Division Deputy General Manager Suruj Alam said no factory owner had formally reported a complete shutdown.
Gazipur Industrial Police-2 superintendent Mohammad Amzad Hossain said his office had received no such report either, though production was being disrupted by 20-25% at various factories, with some units possibly halting temporarily as owners sought alternatives to meet shipment deadlines.
