If the proposed price hike goes through, yarn production cost will increase by 25 cents per kg
Fears of investment stagnation, closure of mills rife
Textile wants more gas by shutting down fertiliser factories
Adoption of long-term energy policies demanded
The country's export-oriented textile sector has incurred production loss worth $1.75 billion in the last three months owing to the lack of enough natural gas supply to the factories, according to the Bangladesh Textile Mills Association (BTMA).
In addition, mills that provide for the local market have lost more than $1 billion in production in the corresponding period.
BTMA President Mohammad Ali Khokon revealed the information in a press conference held at a hotel in the capital on Saturday. Other senior BTMA leaders were also present at the press conference.
BTMA President alleged that EVM meters, supposed to be installed in the factories, have only been set in a small number of factories.
"Titash authorities are taking money by selling air instead of gas," he said.
At the time, he expressed concern over the initiative to increase the gas price.
"The overhead cost of per kg yarn will double from its current price (25 cents) if the proposal to hike gas price comes to effect," he said while fearing that it will force textile mills to shut down for failing to survive in the competitive market.
While demanding a 10-year energy policy, BTMA President Mohammad Ali warned that investments in the country will impede if the price of gas continues to increase the way it did since 2013, which is about 400%.
Meanwhile, Mohammad Ali urged the government to provide uninterrupted gas service to industries instead of supplying them to fertilizer factories and the transport sector.
By doing so, the local textile sector will be able to supply an additional amount of raw materials worth $10 billion every year, he added.