Ctg RMG factories hit by nearly half-shift load shedding; costs rise 20%

Bangladesh's readymade garment sector in Chattogram is facing mounting pressure as prolonged load shedding and rising fuel costs disrupt production, with factory owners claiming a sharp increase in expenses and growing risks to export orders.

Highlights: TBS

Although the Bangladesh Power Development Board claims that the Chattogram region is currently facing a daily load shedding of around 100MW, in reality, the situation is more difficult, according to garment owners.

At Meher Garments on Sagarika Road in the port city, where around 3,000 workers are employed, a typical workday has become a stop-start struggle, according to the authorities.

On 29 April, production at the factory started at 8am but stopped within 10 minutes due to a power outage. It took another 10 minutes to restart using generators. Power came back at 9:40am, but went out again at 11am. Electricity was restored an hour later.

After the lunch break, power went out again at 4:35pm and did not return until 5:25pm. In an eight-hour shift, the factory remained without electricity for roughly three and a half hours, while repeated switching between grid power and generators caused an additional 30 minutes of disruption.

"During summer, we used to face around two hours of load shedding daily, which required about Tk19,000 worth of diesel to keep the factory running," said Khondaker Belayet Hossain, director of the factory and a leader of the Bangladesh Garment Manufacturers and Exporters Association.

"Now, with three to four hours of outages and a 15% rise in diesel prices, our daily fuel cost has climbed to around Tk40,000," he said.

He added that prolonged generator use causes voltage fluctuations, damaging costly machinery and shortening equipment lifespan. "All of this is pushing up production costs, which were not factored in when orders were placed three months ago."

Industry insiders say the situation is not unique to a single factory. Most RMG factories in Chattogram are experiencing three to four hours of load shedding within an eight-hour workday, compounded by fuel shortages and higher operational costs.

As a result, production expenses have surged by about 20%, timely exports are being disrupted, and manufacturers fear losing orders to competing countries.

According to the industry data, 348 out of 699 RMG factories in Chattogram are currently operational. Unreliable electricity and fuel supply have reduced output, placing additional strain on the export-oriented industry.

BGMEA leaders say frequent power disruptions and gas shortages are disrupting production deadlines. This has delayed shipments, forcing some exporters to rely on air freight – significantly increasing costs.

Failure to meet delivery schedules risks eroding buyer confidence, which could affect future orders, they warned.

Former BGMEA vice-president Rakibul Alam Chowdhury said factories are increasingly dependent on alternative fuel sources due to load shedding, driving up production costs.

"Over the past two months, rising freight charges, higher container handling costs at inland container depots, and increased transport fares have pushed overall production costs up by more than 20%," he said.

"As manufacturers seek higher prices from buyers, many foreign clients are cutting back on new orders or shifting to competitor countries," he said.

SM Abu Tayyab, BGMEA director and president of the Chattogram chapter of the International Business Forum of Bangladesh, warned that the prolonged crisis could severely impact the export earnings.

"If the situation continues, small and medium-sized factories may be forced to shut down, leaving hundreds of thousands of workers unemployed," he said.

He stressed the need for urgent steps to resolve load shedding and gas shortages and to ensure energy security, cautioning that failure to act could put Bangladesh's key export sector at serious risk.

When contacted, Fahmida Begum, the executive engineer of the Power Development Board in Chattogram, said, "After the rain, the electricity demand has decreased leaving no requirement for load shedding. But, still there may be power outages due to a fault in the transmission line during thunderstorms and heavy rain."