Energy crisis hits 55% of knitwear export orders

Around 55% of knitwear factories have faced cancellations or reductions in export orders due to the ongoing gas and electricity crises, according to a survey released by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday.
The survey found that 87% of knitwear exporters failed to make shipments on time because of the gas crisis that began on 20 July and subsequent electricity shortages.
As a result, nearly two-thirds of suppliers were forced to offer discounts to foreign buyers.
BKMEA said the survey was based on responses from 20% of its export-oriented member companies. The association has around 800 active members, meaning approximately 160 companies participated in the survey.
The findings showed that 89% of factory owners believed they were at risk of losing foreign buyers’ confidence, while more than three-quarters reported partial production disruptions.
Among respondents, 75% said they had been affected by the gas crisis, while 90% reported being affected by electricity shortages.
The survey found that gas pressure during the period under review was 78% below normal levels.
Around 92% of factories incurred additional costs for alternative fuels because of gas and electricity shortages, while a similar proportion reported losing working hours due to energy disruptions.
Six out of every 10 factory owners said the crisis had increased their risk of loan default, while 7% reported that their factories had completely shut down.
RMG exports fall 1.92% in July
The energy crisis comes as Bangladesh’s ready-made garment (RMG) exports declined 1.92% year-on-year in July, falling to $3.89 billion from $3.96 billion in the same month a year earlier.

On a month-on-month basis, however, exports rose 14.73% from $3.39 billion in June 2026, according to Export Promotion Bureau (EPB) data compiled by Bangladesh Apparel Voice.
Woven garment exports fell 3.16% year-on-year to $1.73 billion, while knitwear exports declined 0.90% to $2.16 billion.
The European Union, which accounted for 49.64% of Bangladesh’s total RMG exports, saw shipments decline 2.45% to $1.93 billion.
Exports to Germany, the largest EU market for Bangladeshi apparel, fell 2.84% to $458.39 million, while shipments to France declined 4.44% to $169.08 million.
Spain and the Netherlands bucked the trend, with exports rising 3.26% to $404.52 million and 1.02% to $234.89 million, respectively. 
Italy recorded the strongest growth among major EU markets, rising 31.91% to $142.18 million.
Exports to the United States, Bangladesh’s largest single-country market, remained broadly stable at $795.79 million, down 0.18% year-on-year. Its share of total RMG exports edged up to 20.47% from 20.12%.
Shipments to the United Kingdom fell 2.44% to $450.82 million, while exports to Canada declined 8.39% to $130.62 million.
Exports to non-traditional markets were broadly stable at $580.26 million, down 0.48%, accounting for 14.93% of total RMG shipments.
Among these markets, exports to Japan edged up 0.29% to $108.51 million, while shipments to Australia and India fell 0.33% and 3.97%, respectively.
Survey methodology
The BKMEA clarified that its survey was based on data from 134 factories and reflects the percentage of factories affected, rather than the percentage of orders or revenue.
BKMEA said the survey would provide a clearer picture once the temporary fuel shortage is resolved, which is expected within one or two days. It also confirmed that no factory has been shut down due to the fuel crisis.
The association said the industry could overcome the temporary disruption with appropriate government policy support.