Bangladesh textile, RMG firms seek gas price reduction, steady supply

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Textile Mills Association (BTMA) also requested the government to cut down the price of gas to Tk 16 a cubic metre from the hiked rate of Tk 30 as global prices of energy have reduced.

The three trade bodies wrote a joint letter in this regard to prime minister's principal secretary Mohammad Tofazzel Hossain Miah.

"The government had assured of providing uninterrupted supply of energy to the industry at the time of raising the gas price last February. But production in textile mills remained almost suspended for want of gas," the letter read.

With a 30-per-cent shrink in the global market for textile and apparel during the last two years, primarily because of the rise in cost of raw materials, energy and dollar following the COVID-19 pandemic and the Russia-Ukraine war, the latest price hike of gas has significantly raised the cost of production for yarns and fabrics, the organisations said.

Factories could not utilise their production capacity by up to 50 per cent.

The trade bodies sought a rise in the limit to the Export Development Fund loan for spinning mills to $30 million and extending the repayment period up to 360 days instead of 180 days, Bangladesh media outlets reported.

They also demanded a moratorium on all types of loans, including term loans, up to June 30 next year, citing a liquidity crisis in the textile sector.

ALCHEMPro News Desk (DS)