Bangladesh’s textile and spinning mills are grappling with a severe gas crisis, significantly hampering local yarn production. Yarn imports surged by 13% to $2.64 billion in the last fiscal year as domestic mills struggled to meet demand. The gas shortage, with pressures dropping to as low as 1-2 PSI during peak hours, has forced mills to operate at only 40% capacity, exacerbating production woes. This crisis, concentrated in key industrial zones like Narayanganj and Savar, has also disrupted operations at garment factories, impacting supply chains and export timelines. Recent cuts in government incentives for textile exports have further incentivized yarn imports over local production, despite lower local yarn costs factoring production and cotton import expenses. The Bangladesh Textile Mills Association has urged a return to previous gas prices to alleviate industry pressures until supply stability is restored.
Source for more details:
