B Mirror Desk : Textile manufacturers are calling on the government to guarantee a consistent gas supply, as the current shortages have forced factories to reduce production, leading to significant financial losses.
The Bangladesh Textile Mills Association (BTMA) stated in a letter to the Ministry of Power, Energy and Mineral Resources that they are unable to operate at full capacity, which is gradually diminishing their working capital and harming their competitiveness in exports. The association highlighted that the mills are struggling to meet export deadlines and are losing their edge in the international market due to rising production costs.
They also cautioned that if the gas supply issues continue, many mills could shut down, potentially resulting in labor unrest as workers may not receive their wages and festival bonuses ahead of Eid-ul-Azha. In the letter, signed by BTMA President Showkat Aziz Russell, the organization outlined the ongoing difficulties faced by the industry, including soaring gas and electricity prices, a dollar shortage, increased bank interest rates, cuts in cash incentives, and the depreciation of the local currency against the US dollar.
Despite these challenges, the inability to fully utilize production capacity is leading to a steady decline in working capital and a decrease in global export competitiveness. Mills in various industrial zones have struggled to produce at the required levels for an extended period due to gas supply shortages. The BTMA representative noted that Titas Gas has recently boosted supplies to the power sector by further reducing allocations for the industrial sector.
He cited the Noman Group, which runs 28 factories, as an example, saying that while manufacturing activities in the remaining units are badly interrupted, output in the majority of the group’s factories is almost ceased.
In order to ensure a seamless supply of gas, the BTMA president urged the government to take the necessary steps. “As a result, mills are facing tremendous financial losses as they cannot manufacture enough to match the export orders,” he said.
