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Published : 25 Apr 2026, 10:18 PM
Production costs in Bangladesh’s ready-made garment export sector have risen by nearly 20 percent amid a fuel crisis triggered by ongoing tensions in the Middle East, according to the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Mohammad Hatem, president of the trade organisation, said industrial units are struggling to secure adequate fuel supplies.
“In many instances, factories are facing difficulties as the supply of oil in containers from filling stations has been halted,” he said.
He also said the power situation has become increasingly unstable.
“Load-shedding averages two to three hours, and in some areas, it lasts between six to eight hours, causing major disruptions to production,” Hatem said.
He made the remarks at a media briefing on Saturday on the four-day Bangladesh International Textile, Knitting and Garment Industry Exhibition (BTKG Expo 2026), which begins on Apr 29, according to a BKMEA statement.
Hatem said production delays are affecting export commitments.
“As production is hampered, exports cannot be completed on time. This leads to additional costs such as air shipment expenses or discounts,” he said.
He added that factories must continue paying wages even when production is halted, further increasing financial pressure.
“Fuel and transport costs have also risen. Altogether, production costs have increased by nearly 20 percent,” he said.
However, he noted that exporters are unable to pass on the increased costs to buyers.
“It is not possible to adjust these additional costs with buyers because prices are fixed in advance,” he said.
At the same time, he said global demand is weakening, leading to reduced orders from international buyers.
“On the other hand, buyers are reducing orders as global market demand declines,” Hatem added.
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