Apparel Sourcing Intelligence - Worldwide

Energy problems grow in South Asia

Apart from in Sri Lanka, energy reliability hit the industry throughout South Asia.

 

Pakistan’s constant energy crises undermined the profitability of its textile and garment making, especially in  Punjab province, throughout the year. At one point attempts to deal with them  included an arrest warrant for the Prime Minister and appear to have led to the suspicious death of a corruption investigator. Occasional claims that a fix had been found never lasted longer than a few weeks. At the end of the year, politicians boasted that what they called the “textile industry” had been assured of continuous supply in the Punjab – but by early January 2014, it became clear that garment manufacturers were getting even less reliable power than usual, and administrators had interpreted “textile” to mean only spinning, weaving and dyeing businesses. Claims of consequent job losses were, even by Pakistani standards of overdramatisation, extreme

 

Tamil Nadu (India’s major spinning centre) was hit by apparently arbitrary power outages and rising costs: the year began with complaints about them, which continued through the year , which  ended with a new round of almost identical worries. But by early February 2014, a dispute between the government of Delhi and an electricity distributor led to a threat to cut power from the region completely

 

In Bangladesh, the year started with worries more about constantly rising energy costs, though in January 2014 it became clear that a number of new textile and garment factories had remained unoccupied for some years because of a government ban on new gas connections