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Investment in dyeing sector dries up due to gas shortage

Investment dyeing

Gas shortages are slowing down the investment in the dyeing industry

by Insider Desk
August 22, 2023

The dyeing sector in Bangladesh is facing a major crisis due to a persistent gas shortage. The shortage has made it difficult for dyeing units to operate at full capacity and has made it more expensive to set up new dyeing units.

As a result, no new dyeing unit has been set up in the country in the last two years. This is because the gas shortage has made getting the necessary approvals and permits difficult. It has also made building and operating a dyeing unit more expensive.

The existing dyeing units are also facing challenges. They are running at half their capacity due to the gas shortage and facing higher energy costs. This has made it difficult for them to compete with foreign dyeing units.

The gas shortage is also affecting the garment export industry. Garment manufacturers need locally-made fabrics, and the gas shortage is making it difficult for them to get them. This could lead to a decline in garment exports, a major foreign currency source for Bangladesh.

The government has taken some steps to address the gas shortage. They have resumed buying LNG from the international spot market and increased the gas supply to the dyeing sector. However, these measures have not yet overcome the gas shortage.

More aggressive steps are required. A steady and cheap gas supply to the dyeing industry needs to be ensured.

Tags: dyeing industry
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