Gazipur power crisis may hit garment export targets, owners say

Infograph: TBS

Power shortages have intensified in Gazipur's industrial areas, bringing production at many export-oriented garment and textile factories close to a halt, factory owners said.

They said supply has fallen far short of demand, while frequent load-shedding has forced factories to cut output, raising fears that the sector may fail to meet export targets if the crisis continues.

Factory owners said the situation has created uncertainty over payment of workers' wages, bank loan instalments and interest, and the survival of their businesses.

Entrepreneurs said repeated hikes in power tariffs, inadequate supply, strong competition from neighbouring countries and the government's current energy policy have put the industry under pressure.

They said timely policy support from the government is needed to protect the garment sector.

Nasir Uddin, managing director of Sadma Group in Kaliakair and a former vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the industry was facing pressure from several sides.

"We are facing multiple crises. Orders in the international market are falling for various reasons. At the same time, power tariffs have been raised in the country. But supply has worsened despite the hike. We have to keep factories shut for most of the day because there is no electricity," he said.

Nasir said production at his factory had fallen to 10 tonnes a day from 60 tonnes because of the power shortage.

He said production was being kept running with generators and limited electricity from around 8pm or 9pm to 6am, but the situation became more difficult after morning.

"Production may stop, but workers' wages, bank instalments and other fixed costs do not stop. If we fail to deliver goods on time, we will lose buyers," he said.

"We have given up hope of profit. We are only trying to survive by running diesel generators at higher costs. But I do not know how long we can continue this way."

Nasir said factory owners had held several meetings with the authorities concerned, but no specific solution had been found.

Shaon Islam, managing director of Sparrow Apparels Limited in the Three Roads area of Gazipur city and a former BGMEA director, said factories were not getting uninterrupted electricity despite paying higher power tariffs.

"The government raised power tariffs, ignoring appeals from stakeholders. But even after paying higher tariffs, we are not getting uninterrupted electricity. We do not get even two to three hours of stable electricity in 24 hours," he said.

Shaon said textile, dyeing and knit composite factories were the worst affected as they depend fully on electricity.

He said many factories were being forced to use diesel as an alternative, which had pushed production costs to nearly three times the usual level.

As a result, Bangladesh is losing its competitiveness in the international market, he said.

Shaon said no visible or effective support had yet come from policymakers.

He said unless a favourable environment is created soon, jobs of many workers and the country's export earnings could come under serious pressure.

Md Abu Raihan, managing director of Pacific Fibre Limited, also echoed the concern.

He said the country's garment industry was passing through a difficult time and many factories were close to suspending production because of the power crisis.

"At this stage, the industry does not need temporary incentives only. It needs a long-term and effective industry-friendly energy policy and its quick implementation," he said.

According to Gazipur Industrial Police-2 Superintendent of Police Amjad Hossain, there are now 2,176 registered industrial units of different types in the Gazipur region.

Of them, 743 are BGMEA member factories, 124 are under the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and 128 are member units of the Bangladesh Textile Mills Association (BTMA).

Business leaders said disruption in production at such a large number of factories would directly affect the national economy.

They urged the higher authorities to intervene to resolve the crisis.