BTMA seeks uninterrupted gas supply to keep up production

The country’s textile industry will be able to maintain a sound production and earn extra bucks if the government is able to address the current gas crisis.

“We can earn $ 10 billion more per year if we have uninterrupted gas supply at a reasonable price,” according to Bangladesh Textile Mills Association (BTMA) president Mohammad Ali Khokon.

The association leader called for steps to ensure quality and smooth supply of gas as well as measures to avert disruption to fabrics and yarn supply chain in the best interest of productions.

Mohammad Ali Khokon made the call at a press briefing in the capital on Saturday.

“The country’s export-oriented textile sector has suffered a production loss worth $ 1.75 billion in the last three months due to the current LNG crisis,” he noted, adding that the local market producers lost more than $ 1 billion worth of production in the corresponding period.

“We do not want the government subsidy. We need a government policy to regulate LNG and electricity price for the sector.”

The government had increased LNG price just before the pandemic, and that time it gave assurance that LNG crisis would be solved. Due to LNG shortage, textile millers fail to continue production.

“The government increased fuel price just a few months ago by 23 per cent. So it needs more time for the LNG price to rise,” said Khokon. Asked about the recent rise in cotton and yarn prices, the businessman said this is a global crisis.

“Currently, we face several crises. When we are able to manage cotton, we suffer vessel crisis. On the other hand, freight cost rose from $ 3,000 to $ 30,000 per container. Cotton price in international market is increasing day by day,” Khokon went on.

The millers expressed concern following the recent moves of the gas transition companies to increase the fuel price. The Titas Gas Transmission and Distribution Company had recently proposed an increase of LNG price by 103 per cent to 116 per cent.

Though the energy regulatory commission has rejected this proposal, the BTMA fears that the government may increase LNG price despite the recent fuel price hike. On Titas’s recent proposal to double the current price of LNG, Khokon said, “If the price hike proposal comes into effect, the overhead cost of per kg yarn will also double from its current price of $ 0.25 to $ 0.50 per kg.”

“Why did they propose to increase LNG price while the distribution company gains profit regularly?” he posed a question, saying that this will make it hard for them to survive the competitive market.

In the press conference, Khokon sought to set EVC meter to the mills using captive power to make LNG bill.

He urged the government to increase more LNG supply to textile mills rather than using the fuel for production of fertilizer which could be met by import.

“We ask the government to provide LNG connection as soon as possible to those mills that have already paid demand note fees,” said the BTMA president.