Bangladesh’s vital textile and apparel sector faces growing pressure from persistent gas and electricity shortages, rising energy costs, and fuel supply disruptions, threatening production capacity and the competitiveness of the country’s export-oriented industry. The textile industry is heavily dependent on uninterrupted gas supply, particularly for energy-intensive wet-processing operations such as washing, dyeing and finishing. However, declining domestic gas production, rising LNG import costs and recent disruptions in LNG supply have deepened the sector’s energy insecurity.
During July and August, gas and electricity shortages significantly affected textile and knitwear factories across major industrial zones. Many factories could not operate at full capacity, and production schedules were disrupted by inadequate gas pressure and irregular electricity supply. To keep production running, several factories have been forced to use diesel, LPG, compressed natural gas and other alternative fuels. These fuels are considerably more expensive than pipeline gas, increasing production costs and placing additional financial pressure on manufacturers.
Factories in major industrial belts such as Savar, Ashulia and Narayanganj,Tangail have reportedly been operating significantly below capacity due to energy shortages. In some cases, production has fallen by up to 40%, particularly where insufficient gas pressure affects boilers and other energy-intensive machinery. The impact is particularly severe for textile mills and wet-processing facilities, where stable thermal energy is essential. Any interruption in gas supply can disrupt dyeing, finishing and washing processes, resulting in production losses, delayed shipments and higher operating costs. The recent disruption in LNG supply has also highlighted Bangladesh’s vulnerability to imported energy. With global energy markets increasingly exposed to geopolitical uncertainty, the textile industry is concerned that unreliable energy supplies could undermine future industrial investment and export growth. Industry stakeholders have emphasized that Bangladesh cannot build long-term industrial growth around temporary solutions. Reliable and predictable energy supply is essential for factories to maintain production, meet export commitments and plan future investments.
Alternative fuels offer limited relief
Some textile factories have begun exploring biomass as an alternative energy source. Agricultural residues such as rice husk, rice straw, jute sticks, bagasse and wood waste can be used to generate heat for industrial boilers. However, biomass cannot currently serve as a sector-wide solution. Bangladesh still lacks the infrastructure required to collect, transport, store and supply biomass on an industrial scale. Switching to biomass also requires investment in boiler retrofitting, fuel handling, storage and ash-management systems. As a result, biomass may work effectively on a facility-by-facility basis but is unlikely to replace natural gas across the entire textile industry. Electric boilers and heat pumps are other potential alternatives that could improve energy efficiency and reduce fossil-fuel consumption. However, their wider adoption requires significant capital investment and, more importantly, a reliable electricity supply.
Renewable energy gaining importance:
Energy insecurity is also encouraging textile manufacturers to accelerate investments in renewable energy and energy-efficiency technologies. Rooftop solar systems, battery storage and energy-efficient motors are increasingly being considered to reduce dependence on conventional energy sources and control operating costs. Industry stakeholders believe the government can support this transition by reducing duties on energy-efficient technologies, facilitating renewable-energy investments and encouraging factories to adopt cleaner energy solutions. At the same time, greater efforts are needed to explore domestic gas fields and strengthen local production to improve long-term energy security.
Reliable gas can increase government revenue:
The textile industry’s demand for reliable gas is not simply about reducing production costs. Stable energy supply would enable factories to operate closer to full capacity, increase production, fulfill export orders, and contribute more to the national economy.
Md. Kamal Hossain, Managing Director of Explore Garments Ltd and Shahzaib Washing & Dyeing Ltd, said that a stable, adequate gas supply would allow textile and garment factories to increase production capacity and meet export commitments more efficiently. He emphasized that reliable energy is essential to reduce production disruptions and strengthen the competitiveness of Bangladesh’s textile industry.
With an adequate and reliable gas supply, the textile sector can generate higher export earnings, protect employment, and contribute greater revenue to the government through taxes, duties, and other economic activities. The industry therefore sees reliable gas supply as an investment in the country’s broader economic growth. Ensuring adequate energy for factories could help attract new investment, strengthen export competitiveness and increase government revenue. For Bangladesh’s textile sector, the message is straightforward: if the government ensures reliable gas supply, the industry can deliver higher production, stronger exports, more employment and greater revenue for the national economy.
Finally, for the textile sector to survive, it needs business-friendly policy support, ensuring energy and AI-driven solutions to boost productivity.
