Energy Fears Push Buyers Away from Bangladesh, Orders Shift to Competing Markets|Latest Textile News

Energy Fears Push Buyers Away from Bangladesh, Orders Shift to Competing Markets

Bangladesh’s Textile and Garment industry is facing increasing pressure as concerns over energy reliability begin to influence global sourcing decisions. Industry leaders have warned that potential electricity shortages in the next two to three months are creating uncertainty among international buyers, leading some to divert orders to competing markets such as India. Anwar-ul-Alam Chowdhury stated that foreign sourcing teams are already raising concerns about power disruptions, which could significantly impact production capabilities in the country’s export-oriented sectors.

The effects of these concerns are already visible, with several orders either being shifted or placed on hold. Typically, orders for the July and August production cycle are confirmed well in advance, but this year, many remain unfinalized or delayed. This uncertainty is affecting production planning for manufacturers, particularly in the ready-made garment sector, which forms the backbone of Bangladesh’s export economy. Large global buying houses have also started issuing warnings to local suppliers, further increasing anxiety within the industry.

In addition to energy challenges, the sector is also grappling with financial pressures linked to taxation policies. Industry representatives have highlighted concerns over the minimum tax requirement, which mandates companies to pay 1 percent tax on turnover even if they are operating at a loss. This issue was discussed during a consultation meeting organized by the National Board of Revenue in Dhaka.

If energy supply issues persist, industry experts warn that Bangladesh could face a deeper slowdown in export orders in the coming months. The situation underscores the urgent need for policy intervention and infrastructure improvements to maintain the country’s competitiveness in the global textile market.

12:23 PM, Apr 24

Energy Fears Push Buyers Away from Bangladesh, Orders Shift to Competing Markets

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