Textile and apparel (T&A) industry leaders in Bangladesh have warned against a severe gas shortage, which, according to them, has crippled operations for nearly three years and pushed many mills to the brink of collapse.
At a joint press conference in Dhaka, Showkat Aziz Russell, President, Bangladesh Textile Mills Association (BTMA), emphasized, the industry needs a roadmap for gas supply as it cannot run its mills, he stated, urging the government to prioritize increased energy supply in the upcoming fiscal budget. Despite previous lobbying efforts against gas price hikes, rates were raised, yet supply failed to improve.
Russell also suggested, the government should engage Chinese investors to rapidly establish gas supply from Bhola to Dhaka and surrounding areas. Expressing skepticism about attracting foreign investment given the current struggles faced by local businesses, he noted, many entrepreneurs are now considering exit strategies due to unsustainable operating conditions. Most mills are currently running at only 50 per cent capacity.
Many mills are being forced to use expensive diesel, quadrupling costs, while the adviser reportedly favors diesel imports over liquefied natural gas (LNG) due to quicker payment collection from customers, Russell further noted. Furthermore, many businesses are not receiving gas despite substantial deposit payments to supply companies, he added.
Anwar-Ul-Alam Chowdhury (Parvez), President, Bangladesh Chamber of Industries (BCI), critiqued, the government has failed to meet its gas supply commitments, drawing a stark contrast to the severe penalties faced by businesses unable to fulfill their own obligations.
Hossain Mehmood, Chairman, Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA), confirmed, the gas crisis has resulted in five to six terry towel mills shutting down operations, with home textile mills also facing closure.
Attributing the crisis to a planning failure, Razeeb Haider, Director, BTMA, pointed out, last year's LNG imports were woefully inadequate. Calling for increased domestic gas drilling, particularly offshore, speakers urged the government to curb corruption in gas supply and immediately double LNG imports.
Md Saleudh Zaman Khan, Vice-President, highlighted the extreme low gas pressure in areas like Bhulta, making full mill operation impossible despite hefty monthly overheads. He warned, if the gas crisis isn't resolved by June, many mills might close permanently after Eid-ul-Azha.
Emphasizing on the industry's fight for survival, Abdullah Al Mamun, Director, BTMA, warned, widespread mill closures would severely impact the nation.
