Thursday, July 18, 2024
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HomeNews & ViewsIndustry FocusEnsure gas supply to protect Primary Textile Sector

Ensure gas supply to protect Primary Textile Sector

Author: Mahbub Khan Himel, Director of Mithela Group, and co-chairman of FBCCI Standing Committee

WhatsApp Image 2024 07 08 at 9.39.18 AM
Figure: Mahbub Khan Himel, Director of Mithela Group

A severe gas crisis in the BD industrial area has severely disrupted production, causing delays in yarn deliveries. Several Industrial reportedly informed that like many others in the area, has been struggling with the gas shortage for a considerable time, severely affecting its production.

However, a severe gas crisis in the Narayanganj industrial area has severely disrupted production, causing delays in fabrics deliveries.Many others in the area, has been struggling with the gas shortage for a considerable time, severely affecting their production.

“Currently, we can produce only 50%-60% of our capacity, meaning production has declined by 40%-50% due to the ongoing gas crisis. We can no longer achieve our production targets,” he added. He also mentioned that the gas distribution authority has not provided any indication of a solution to this crisis.

Many other textile mills in major industrial hubs like Tongi, Joydebpur in Gazipur, Bhaluka in Mymensingh, Palash, Madhabdi in Narsingdi, Narayanganj and Savar and Ashulia in Dhaka have also been suffering from the acute gas shortage for over a month.

Textile millers report that production at 80% of the country’s mills has dropped to an average of 40% due to the gas crisis. They fear this will hinder their ability to supply raw materials to RMG factories on time, impacting the revenue of the country’s main export product.

RMG factories depend on the production of textile mills, which provide yarn, woven cloth, and dyed materials. RMG manufacturers report that textile mills cannot supply raw materials on time due to the gas crisis.

Insufficient gas pressure disrupts the yarn and cloth dyeing process, delaying raw material supply by 15-20 days for each purchase order.

The government should take necessary initiatives to protect domestic industries such as the textile sector by continuing incentives and ensuring gas supply.

, Bangladesh will graduate from LDC in 2026 and many industries are on the verge of closure due to cuts in industry incentives, increase in interest rates and shortage of gas supply.

Some industries have already closed and it will not be possible to sustain many industries in this situation. In response to a question regarding the increase in the price of yarn, he said, according to current market price, the industry is spending 20 to 22 cents (Tk. 22) more per kg of yarn than India.

In this situation, the cost of production per kg of cotton will increase further due to increase in interest rate of bank loans, shortage of gas and reduction of incentives. It will not be possible to survive by competing in international market.

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