Bangladesh’s critical garment industry struggles amid energy, demand crises

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The world’s number-two garment exporter faces a double whammy from slowing global demand and a national energy crisis

Employees work at at a garments factory in Gazipur, Bangladesh. Picture: REUTERS/MOHAMMAD PONIR HOSSAIN

“Retailers in both European and US markets are either deferring the shipments of finished products or delaying orders,” he said in an interview. “As inflation is soaring in our export destinations, it has a serious impact on us.” “The cost of electricity from generators is three times what we get from the national grid, because diesel is costly,” Atiqur Rahman, chairman of Standard, said in a separate interview. “We can’t keep our dyeing and washing units shut due to the power outage. If we do, all the fabrics will go to waste.”

Exporters also see ominous signs from Walmart’s full-year profit forecast cut and its pledge to reduce clothing prices.

 

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