Small industries fear losses from load-shedding

Rasel Ahmed is a small textile mill owner in Narayanganj’s Araihazar upazila.

He said, “If there is load-shedding for one to two hours every day, the production will be reduced by 8-10 per cent.”

“It is not possible for small factory owners like us to afford alternative power supply.

“While some of our employees are paid on a production-based scale, the majority are paid fixed salaries. Therefore, our monthly expenses will remain nearly the same, while our production falls,” he added.

So as load-shedding increases, our losses will also increase, he also added.

Echoing the statement, Rezaul Haque, president of the Bangladesh Bread Biscuit Manufacturers’ Association, an organization of small factory owners that manufacture off-brand bakery items, said regular load-shedding would put small factory owners under financial pressure at the end of the month.

“All the small industrial entrepreneurs are afraid of losses due to regular load-shedding. They accept load-shedding in the national interest but demand a reduction in its duration,” he added.

Mirza Nurul Ghani Shovon, president of the National Association of Small and Cottage Industries of Bangladesh (NASCIB) said, “One hour of load-shedding is tolerable given the global crisis. But if the duration increases, the export trade will be severely affected. Many small traders will be flat broke.”

Poultry sector

The poultry industry will be one of the industries affected by load-shedding.

Farmers say there are many small farms spread across the country and they cannot afford alternative power supply systems.

These sheds, with a capacity of 1,000 to 2,000 chickens, are usually kept in cramped spaces. Poultry chickens have low heat tolerance and need fans.

If there is load-shedding for a couple of hours, many chickens are likely to die.

Entrepreneurs believe that if the death rate of chickens increases on the farm, the small farms that are already suffering losses will suffer more.

Bangladesh Poultry Khamar Rakkha Jatiya Parishad (BPKRJP) General Secretary Khandkar Mohsin told The Business Post that farmers are already losing money due to the increase in feed prices and the prices of chicken and eggs not increasing at the same rate.

“Therefore, small farms cannot afford alternative power supply. If there is regular load-shedding, the mortality rate of farm chickens will increase, which will cause more loss to the farmers,” he said.

Farmers from different parts of the country have been calling me to express their concerns. They are fighting to survive, hoping to make a turnaround.

Therefore, our demand to the government is to exempt this sector from load-shedding.

Cold storage industry

Cold storages usually contain perishable products, so they require uninterrupted power supply.

Entrepreneurs in this sector say that while some large cold storages have generators and other alternative power supplies, many small ones do not, because of the cost-cutting phase that has been continuing for several years due to losses.

If there is load-shedding, these businesses will suffer more losses due to the spoilage of various perishables, such as fruits and vegetables.

Therefore, they demanded a reduction in load-shedding duration in areas with cold storage facilities.

President of Bangladesh Cold Storage Association Mosharf Hossain told Business Post that already entrepreneurs from different parts of the country have expressed their concerns to us.

“In response to the demands of the Thakurgaon cold storage owners’ association, we have written to the government and requested that load-shedding be avoided in the regions with the majority of cold storage facilities,” he added.

Export Sector

Stakeholders have urged the government to exempt export-oriented factories from load-shedding.

They say that the country’s two main sources of foreign exchange earnings are remittances and exports.

Growth in the export sector must be maintained to replenish the country’s falling foreign exchange reserve.

Therefore, the government should provide uninterrupted power for the production of all export goods.