RMG backward linkage supply chain has been affected by low gas supply and electricity disruption

The backward linkage supply chain has been affected by low gas supply and power rationing, according to the nation’s export-focused garment manufacturers, who claim they are having trouble delivering goods on time.

Because of the delayed supply of raw materials, many clothing exporters have already experienced schedule delays of at least seven to ten days. Following the unprecedented increase in diesel prices, the situation worsened even worse.

Depending on the items, it has not only decreased productivity but also raised production costs by 5% to 15%. Additionally, it will make exporters face greater competition. Industry insiders claimed that while they are making every effort to keep shipment deadlines, the high cost of diesel will result in financial losses. Exporters have urged the government to supply uninterrupted gas and power taking into account export revenues in order to maintain buyers’ confidence in making additional orders and benefiting from the US-China-Taiwan issue.

Despite production increasing by 4% year-over-year in April, the general manufacturing index score fell by 6 percentage points to 489.73 in April from 520.90 in March, according to the Bangladesh Bureau of Statistics (BBS). After reaching 566.19% in January, the greatest level in three years, April was the third consecutive month that industrial production slowed down.