Md. Shafiqul Islam Sarker, Managing Director, Purbani Group and former Director, BTMA
The Ukraine-Russian war has sparked a global energy crisis, straining supply chains and exerting inflationary pressure worldwide. Bangladesh is suffering from a massive energy shortage as gas and oil prices skyrocket, forcing factories to cut back on productive hours due to a debilitating lack of sufficient gas supply.
This means export-oriented industries must contend with declining demand worldwide while managing exorbitant utility prices at home. Utilities make up about 4 percent of a factory’s operational expense, but absolutely no revenue can be generated without it
If Bangladesh’s export-oriented industries are to absorb global supply chain shocks, they cannot do it without the state’s support in providing critical infrastructure. BGMEA, BTMA has requested the government to immediately ensure an uninterrupted gas supply to apparel factories.
In this crisis moment, How can Textile Sector effectively manage its energy security?
Most of the stakeholders in the textile sector have their own captive power generation as historically the grid power had always been erratic. However, the current crisis with all the primary fuel sources has put everyone in a very tight spot. Specifically, the gas supply on which almost all the captive power generation is dependent is affected severely. The stakeholders are unable to do much as the source is entirely managed by the government. Therefore, our associations are closely working with the government to mitigate the situation. Apart from that some of us who have alternative power sources, such as generation from diesel, are getting some support; albeit at a very high cost. In the meantime, we are prioritizing our key productions to optimize power usage and minimize losses.