US buyers drive 11.42pc RMG surge as energy deficits threaten shipments
Bangladesh’s ready-made garment (RMG) sector is demonstrating remarkable external resilience alongside acute internal vulnerability, as robust export growth to the United States coincides with severe domestic production disruptions caused by ongoing energy shortages.
According to data released by the Export Promotion Bureau (EPB), RMG shipments to the United States Bangladesh’s largest single-country export destination rose 11.42 percent year-on-year to $1,612.92 million during the first two months (July-August) of FY27, up from $1,447.60 million recorded in the same period of FY26.
RMG shipments to the US averaged $806.46 million monthly in July-August, up 25.65 percent compared to the FY26 full-year monthly average.
The performance was driven primarily by a powerful surge in August exports, which expanded 25.65 percent year-on-year to reach $817.13 million, comfortably offsetting a marginal 0.18 percent contraction in July ($795.79 million).
The combined two-month earnings already represent 20.8 percent of the total $7,744.61 million earned from the US market throughout FY26, bringing the current monthly export average to $806.46 million a 25.65 percent jump over the previous fiscal year’s monthly average of $645.38 million.
However, this strong export momentum faces unprecedented headwinds on the factory floor, where acute gas and power deficits threaten to derail delivery commitments.
A comprehensive survey released Tuesday by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) revealed that 55 percent of knitwear exporters have suffered cancelled or reduced orders due to severe energy shortages.
Gas pressure plunged 78 percent below normal levels during the crisis period, forcing 87 percent of knitwear exporters to miss shipment deadlines.
The BKMEA survey sampling 20 percent of active member factories, representing approximately 160 units presents an alarming operational portrait.
Since the gas crisis escalated on July 20, followed closely by grid power disruptions, 87 percent of exporters failed to dispatch shipments on time.
To prevent complete order cancellations amid dispatch delays, nearly 60 percent of factory owners were forced to offer steep discounts to overseas buyers.
Operationally, 75 percent of surveyed units reported direct damage from gas shortages, while 90 percent suffered power outages.
Gas pressure plunged 78 percent below normal levels, driving 92 percent of factories to run expensive alternative fuel generators and incur substantial working-hour losses. Consequently, over 75 percent of factory owners partially suspended production, while 7 percent shut down operations entirely.
BKMEA warned that prolonged energy deficits carry severe systemic risks, with 89 percent of factory owners fearing an erosion of buyer trust and 60 percent citing heightened risks of commercial bank loan defaults.
