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Bangladesh Textile Industry Electricity Price Hike 2026: What Factory Owners Need to Know

Apr 17th,2026 48 Views

Bangladesh Textile Industry Electricity Price Hike 2026: What Factory Owners Need to Know

Published on: April 18, 2026
Author: Qattex Industry Analysis Team


Introduction

On April 1, 2026, the Bangladesh Energy Regulatory Commission (BERC) officially implemented the latest industrial electricity price adjustment, marking the second electricity price increase in the country this year. For Bangladesh's $55 billion textile and garment industry, which accounts for 84% of the country's total export earnings, this price hike will have a direct and significant impact on production costs and profit margins.

In this article, we will break down the details of the new electricity tariff, analyze its specific impact on circular knitting factories, and provide 3 practical, actionable cost-saving strategies to help factory owners navigate this challenge.

Details of the 2026 Electricity Price Hike

The new tariff structure applies to all industrial consumers connected to the national grid, with different rates based on consumption levels and time of use:

  • Off-peak rate (11 PM - 7 AM): Increased by 8.2% to BDT 7.85 per kWh
  • Peak rate (7 AM - 11 PM): Increased by 11.7% to BDT 12.30 per kWh
  • Maximum demand charge: Increased by 10% to BDT 660 per kVA per month

The price adjustment was approved to cover the rising cost of imported fuel and reduce the government's subsidy burden. It is expected that further moderate price increases may occur in the second half of 2026.

Impact on Circular Knitting Factories

For circular knitting factories, electricity is the single largest operating cost after raw materials, accounting for 15-20% of total production costs. The latest price hike will:

  • Reduce overall factory profit margins by 3-5% on average
  • Increase the monthly electricity bill of a 50-machine factory by approximately BDT 120,000-180,000
  • Put additional pressure on small and medium-sized factories with already thin margins
  • Accelerate the industry's shift towards energy-efficient production technologies

Factories that still use outdated, energy-intensive equipment will be hit the hardest, while those that have already invested in energy-saving solutions will maintain a significant competitive advantage.

3 Practical Cost-Saving Strategies for Knitting Factories

1. Optimize Production Scheduling for Off-Peak Electricity

The 56% price difference between peak and off-peak rates creates a significant opportunity for cost savings. By shifting high-energy consumption processes such as knitting and dyeing to off-peak hours (11 PM - 7 AM), factories can reduce their overall electricity bills by up to 25%.

We recommend implementing a two-shift production system, with the night shift handling the most energy-intensive operations.

2. Upgrade to Energy-Saving Production Equipment

Investing in modern energy-efficient equipment is the most effective long-term solution to rising electricity costs. Even small upgrades can deliver substantial savings:

  • Replacing traditional air jet systems with energy-saving models can reduce compressed air consumption by up to 30%
  • Upgrading to atomizing oilers reduces lubricant consumption by 40% and improves machine efficiency
  • Regularly replacing worn-out belts and bearings reduces friction and energy loss by 10-15%

Most energy-saving upgrades have a return on investment period of 6-12 months, making them an excellent financial decision.

3. Implement a Proactive Equipment Maintenance Program

Poorly maintained equipment consumes significantly more electricity than well-maintained machinery. A proactive maintenance program that includes regular cleaning, lubrication and parts replacement can reduce energy consumption by 10-15% and extend equipment lifespan.

It is especially important to replace worn-out timing belts, sinkers and needles on schedule, as these components have a direct impact on machine energy efficiency.

How Qattex Can Help

As a leading supplier of circular knitting machine spare parts with over 30+ years of industry experience, Qattex is committed to helping Bangladesh textile factories reduce costs and improve efficiency.

We offer a complete range of energy-saving solutions for knitting machines, including the industry-leading ShengSong Energy-Saving Air Jet System and SS30 Atomizing Oiler.

Frequently Asked Questions

Q: When did the new electricity prices take effect?

A: The new tariff structure came into effect on April 1, 2026.

Q: Will there be any government subsidies for the textile industry?

A: The government has announced a temporary 5% subsidy for export-oriented textile factories, which will be in effect until June 30, 2026.

Q: How long will it take to recoup the investment in energy-saving equipment?

A: Most energy-saving upgrades pay for themselves within 6-12 months through reduced electricity bills.

Q: Does Qattex offer installation services for energy-saving equipment?

A: Yes, we provide professional installation services and technical support for all products we sell.

Conclusion

While the latest electricity price hike presents a significant challenge for Bangladesh's textile industry, it also creates an opportunity for factories to improve their efficiency and competitiveness. By implementing the strategies outlined in this article and investing in energy-saving technologies, factory owners can not only offset the increased electricity costs but also position their businesses for long-term success.

Qattex is proud to be a trusted partner to the Bangladesh textile industry. We will continue to provide high-quality products, professional technical support and innovative solutions to help our customers thrive in an increasingly challenging market environment.

If you would like to learn more about how we can help you reduce your energy costs, please contact us today for a free consultation.

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