Narayanganj industrial hub grapples with persistent gas crisis

The industrial hub of Narayanganj has been grappling with a continuous gas shortage since the second week of this month, resulting in a substantial decrease in factory production and subsequent losses for the owners.

On Sunday, a number of factories suddenly halted operations in certain sections. Workers were granted early leave before the completion of their scheduled working hours.

Given the circumstances, the factory workers fear that if the situation persists, this might lead the owners to declare a mass layoff.

As per the Department of Inspection for Factories and Establishments, Narayanganj currently has around 3,500 factories involved in the production and export of garments. Of them, around 2,200 factories are registered.

Approximately 30 lakh workers rely on the factories as their source of income. However, the rising prices, gas scarcity, and decline in orders have instilled concerns about the future for both the workers and owners.

Motahar Hossain Bhuiyan, the CEO of IFS Texwear Pvt Ltd, one of the affected factories in Fatullah, told The Business Standard that the factory's production has already decreased by 25%, and it is now running on CNG and LPG gas procured by the owners.

"Several sections of our factory have already been closed. Workers do not have enough work. On the one hand, we have to give the workers' salaries in the new pay structure, and on the other, additional expenses add to the difficulty of the situation," he added.

He further stated that the gas pressure in the line witnessed an increase after 1am, following a period of unavailability during the daytime.

"Moreover, now gas has to be bought at a higher price than before. Even then, we don't get enough gas"

The CEO of EuroTex Knitwear in Fatullah, Shamim Islam said they have to buy gas worth several lakhs taka every day to keep the factory running. This expense needs to be adjusted with the factory's production cost.

"How long will we run the factory like this? Also, the number of product orders is decreasing day by day."

Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association Mohammad Hatem said, "The entire sector is now suffering, with the factories encountering a notable 50% reduction in their operational capacity. Amid this, the gas crisis has caused fear among the owners."

He said the decision to increase the wages of RMG workers was untimely. It would have been more suitable to implement it after a period of six months.

"The government has assured us that they are taking immediate action to resolve the ongoing gas crisis, and we are waiting for that," added Hatem.