Bangladesh, one of fashion’s most important manufacturing markets, may face a production crises if workers take August holidays en masse.
Nasrul Hamid, State Minister for Power and Energy, has accorded a proposal asking factories to choose different days off instead of all of them remaining closed.
Bangladesh in the world’s second largest garment production company after China. By introducing a system of rolling holidays it would reduce pressure on electricity demand as well as fuel oils for public transport, Mr Hamid said in an interview.
Bangladesh has previously resorted to power cuts to preserve fuel. Many manufacturers are facing challenges in running factories at full capacity owing to power supply shortages as the world grapples with an energy crisis.
Some factories have resorted to trying to running diesel-run generators in order to continue production, but these come at additional costs that increase production prices.
“The entire manufacturing sector is now reeling under rolling power cuts as factories have to spend 10-30 percent extra on meeting electricity supply shortfalls to keep their production lines up and running 24/7,” said The Business Standard.