Textile industry lost $1.75b for gas crisis
Industry Desk: In the last 3 months, the Bangladesh textile industry lost $1.75 billion due to the gas crisis. This unsettling reality surfaced in a press conference was held by Bangladesh Textile Mills Association (BTMA) on 29th January 2022 at a hotel in Dhaka.
Mohammad Ali Khokon, President of BTMA also revealed that textile millers lost more than $1 billion in production in the last 3 months period.
Khokon highlighted the grim reality by saying, “Since 2013 the price of gas increased around 400%. But Titash authorities are taking bills by selling air instead of gas. Which is greatly hampering the textile mills.”
Mohammad Ali Khokon stressed the immediate installation of EVC meters in the mills related to Captive Power Generation and payment of bills on its basis without delay.
At the same time, the BTMA President also voiced alarm over the initiative to raise the gas price.
“Gas and electricity eat up around 25% of manufacturing cost. And we are hearing that the price of gas will be raised again.”
“In this case, if the gas tariff is increased from 103% to 118%, the cost of production of yarn will steeply increase, which will put the local spinning mills at risk of selling their yarn. The overhead cost of per kg yarn will double from its present price (25 cents) if they plan to hike gas price comes to effect.”
“Which will immensely hurt the $2.5 billion investment in the textile industry. The mills will fail to repay the loan on time, which will disrupt the existing employment and create a law and order situation.”
BTMA urged the govt. to implement a 10-year energy policy.
Also present at the meeting were Fazlul Haque, Vice President, BTMA and Managing Director, Israq Textile Mills Limited; Abdullah Al Mamun Vice President, BTMA and Director, Abed Textile Processing Mills Limited; Md. Mosharaf Hossain, Director, BTMA and Managing Director, Mosharaf Group; Md Saleudh Zaman Khan, Director, BTMA and Chairman, N.Z. Fabrics Ltd.
Also a significant number of esteemed members of the Board of Directors of BTMA were present at the press conference.
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