Bangladesh’s Ministry of Jute and Textile has sent a letter to the Prime Minister’s Office, and the power, energy and mineral resources ministry requesting them not to increase gas price for captive power generation for textile industries. The decision came from an inter-ministerial meeting presided over by state minister for jute and textile Mirza Azam. In the meeting textile mill owners said that the proposed hike in gas price by 130 per cent to Tk 19.26 per unit from existing Tk 8.36 per unit would make the industry uncompetitive leading to loss of exports, closure of mills, unemployment and fall of foreign exchange earnings and retention.

Bangladesh’s textile sector has been passing through a tough time due to slow global economy, Britain’s exit from the Eau and the recent terror attack. Under these circumstances, if the government increases gas tariff, textile sector will lose its competitiveness and the country will have to depend on export for yarn and fabric, BTMA president Tapan Chowdhury said. He said that the proposal to increase gas price for the captive power within a year was not acceptable. Bangladesh government increased the price of gas for captive power by 100 per cent to Tk 8.36 per unit from Tk 4.18 per unit on September 2015.