BD Textile mill owners hit by scarcity of gas

adv-06

The energy crisis that Bangladesh has been facing has affected ordinary people’s productivity, income, and livelihoods, and brought multiple challenges to the industry, including increased costs of production, underutilization of capacity, low production, and decreased competitiveness in regional and global markets. This is more severe in energy-intensive industries such as textiles, leathers, RMG, ceramic, etc.

The primary textile sector needs adequate pressure of gas as the capacity is now idle in the mills, If the mills cannot run at full capacity, they will face losses, and that will discourage further investment in the sector. It was not only textile millers that were suffering due to persistently low pressure of gas, but also some garment factories.
Textile mills should be aided to use their full capacity during this time of economic crisis so they can contribute to earning more foreign currency. The textile and garment sector witnessed a very dry investment season in 2023 as demand for clothing items fell globally while an energy crisis on the domestic front led to higher costs of production

Because garment manufacturers are reducing their dependence on imported yarn and fabrics and instead using more local raw materials to meet shorter lead times, which are very important for international buyers, their capacity has increased further.
The textile industry in several crucial regions, including Manikganj, Gazipur, Savar, Narayanganj, Dhamrai, and Chittagong is facing a severe gas supply issue, resulting in factory closures and a significant drop in productivity.

This gas shortage has caused substantial setbacks for textile mills, especially those located in these areas even as textile manufacturers have reported that the current low gas pressure and reduced supply volume have made production unfeasible in many mills.
As the world’s top LEED Platinum-certified woven Textile Unit Mithela Textile Facing an energy crisis day by day loose production. More than three times gas prices increased but less supply . When International buyers see a Sustainable factory cannot run their production, how will they run their upcoming order. The newly elected government previously worked on our remarkable infrastructure development. But besides government should more focus on energy and support the country’s textile sector. 

When textile mills around the country are struggling to keep their production going due to the ongoing gas crisis, Mithela Textile Mills Limited of Narayanganj has somehow found a way around it thanks to the stroke of foresight of its owner.

In 2018, the mill installed a boiler that runs on paddy husk, a byproduct of rice mills. Now that boiler has saved the day for the mill. But its not adequate, Just backup for run production. 

Aside from churning out 45 lakh yards of fabric per month, the factory is also able to help two of the country’s leading textile mills whose production has also been hit by the gas shortage. Mithela Textile Mills Ltd also produces and dyes about 15 lakh yards of fabric per month for those two mills.

“We work with reputed foreign buyers. Currently, due to this, overhead cost has increased and instead of profit, we have slipped to the breakeven point. But we have been able to supply quality fabric, retaining our buyer’s trust, which is most important in the current crisis,

Renewables cannot meet our absolute requirement ever. But planned development of resources may assist in stabilizing prices in 20 years. Bangladesh must give priority to grid-connected solar and wind energy. Industrial rooftops should be provided required support.

“In this situation, if there is no gas supply, then the cost of production will go up. Factories will face losses. Many entrepreneurs will go bankrupt due to these reasons.” Besides Foreign Investment will decrease. 

Author: Mahbub Khan Himel Director of Mithela Group