Knitting factories in Bangladesh to close from July 15 due to low production rates

The Bangladesh Knitting Owners’ Association (BKOA) comprising 450 active member factories, of them 300 are based in Narayanganj has announced an indefinite closure of all knitting units from 15 July demanding an increase in production rates.

The leaders of the association announced the decision in a statement issued on14 July. BKOA President Salim Sarwar has expressed concerns over the rising costs of production due to the depreciation of the taka against the US dollar.

According to the statement, a 40 percent increase in the dollar’s value over the past four years has led to soaring costs for imported raw materials like needles, sinkers, and needle oil.

Coupled with rising labour costs, transportation expenses, factory rents, and electricity prices, the knitting industry is facing significant losses.

To overcome the crisis, the association proposes increase in prices of manufacturing per kg single jersey fabric from existing Tk15-Tk17 to Tk20-Tk22, per kg rib from Tk18-Tk20 to Tk25-Tk27, and per kg plain interlock from Tk20-Tk22 to Tk30-Tk32.

Sarwar emphasised that the proposed wage increase is directly linked to the 40 percent increase in dollar value and not influenced by other factors like worker wages, electricity, or rent. He claimed that 30 percent of the knitting factories under the organisation were already closed. He also criticised the garment owners’ negotiation tactics on their demand, stating that it creates uncertainty and hinders the industry’s stability.

According to Bangladesh Knitting Owners Association, with over 1,500 registered knit factories and an additional 800 unregistered ones, the industry is facing severe challenges. In the past year and a half, Narayanganj’s BSCIC Industrial Estate alone has witnessed the permanent closure of more than 10 knit factories. The association estimates that 85 percent of Bscic knit traders are operating at a loss.





BKMEA the buyers of knit fabric appealed the owners to call of the strike which was without any consultation with the buyers. The BKOA supports about 50 percent of the BKMEA knitwear export by knitting their fabrics.