Textile millers demand return to former gas price until crisis resolved

The Bangladesh Textile Mills Association (BTMA) has called for a return to the previous gas price for textile industries until the ongoing crisis is resolved.

The association said the production capacity in the mills declined to 40% because of a severe gas crisis in the major industrial belts in the country.

The industrial hub of Narayanganj has been grappling with near blackout conditions for the past 15 days, while gas pressure in the Savar, Gazipur, and Ashulia hubs has dropped to a critical 1-2psi, severely impeding production. 

Speaking at a press conference on the upcoming "18th Dhaka International Textile and Garment Machinery Exhibition (DTG) 2024" in the capital on Monday, BTMA President Mohammad Ali Khokon expressed his despair over the current situation.

He said Petrobangla had assured them of an uninterrupted gas supply once the price was increased. A year has passed, and the promised supply has yet to materialise.

"The government should sit with us to solve the issue. Until the problems are resolved, it is imperative to return to the previous gas prices of 2022," he said, adding that Petrobangla has failed to address the gas issue.

In January 2023, the government last increased gas prices by as much as 179%, aiming to adjust subsidies and reduce the fiscal deficit.

For large industries (including textile industries), the price was raised up to Tk30 from Tk11.98 (150% jump). For medium industries, the price was set at Tk30 from Tk11.78. And for hotels, restaurants, and other commercial entities, the price was hiked to Tk30.50 from Tk26.64 per cubic metre.

Highlighting the severe gas shortage in the country, Khokon urged the government to prioritise supplying industries over households and CNG stations. 

According to the BTMA, these users consume 19% of the total gas supply, valued at $8 billion annually.

Redirecting half of this gas supply to industries could potentially generate 4-5 times more foreign currency, the association estimated.

"The households [burning 13% of gas] and CNG [burning 6%] could easily be run by LPG. But our machineries are not capable of burning this. It needs natural gas," the BTMA president added. 

Regarding the country's weak economic situation, the BTMA chief blamed the Bangladesh Bank for its "weak" monetary policy. 

The four-day-long Textile and Garment Machinery Exhibition is scheduled to begin on 1 February at the International Convention City, Bashundhara.

The exhibition will be inaugurated by Prime Minister's Advisor on Private Industry and Investment Salman F Rahman, while this expo will remain open every day for everyone from 12pm to 8pm.

The BTMA and Yorkers Trade & Marketing Services Co Ltd are jointly organising the exhibition. Almost all leading global and local RMG and textile capital machinery producers will showcase their new products in this fair.

According to the central bank, the country imported $4.85 billion and $5.46 billion worth of capital machinery in FY23 and FY22 respectively. 

Among the figures, $800 million worth textile and RMG machinery was imported in the first ten months of FY23, and $855 million in FY22.

Besides, the textile and RMG sectors imported nearly $11 billion worth of capital machinery between FY13 and FY22.