Staff Reporter :
The country’s textile sectors’ trade bodies on Wednesday strongly opposed the gas distribution companies’ proposals to increase gas tariff amid businesses growing resentment over the move.
Terming the gas price hike move as ‘illogical,’ they said, a fresh rise in the utility tariff will push up apparel manufacturing cost by 5.0 per cent further and the factories will lose the ability to bear the addition production cost.
“The proposal of doubling the average gas price for industrial consumers is ‘illogical’. If implemented, it would leave serious adverse impact on the textiles sector,” said BTMA President Mohammad Ali Khokon.
He came up with the view at a joint press conference of Bangladesh Textile Mills Association (BTMA), Bangladesh Garments Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) held at the Apparel Club of BGMEA headquarters in Dhaka.
He said, textile mills were supposed to get uninterrupted gas supply. But Titas has so far failed to supply adequate gas to the mills causing huge financial losses for the industry owners.
“Titas should compensate the millers first and then go for gas price hike afresh,” said Mohammad Ali Khokon.
Opposing the gas price hike move, he said, more than three million people directly and indirectly are depended on the country’s primary textile sector that invested more than $7 billion. “The sector would be ruined if the government made any ‘wrong decision’ like increasing gas prices for captive power generation.”
“Textile and garment factories are not in a position to afford any gas price hike as both the sectors recently increased the wages of workers while many other costs also went up in recent years,” BGMEA President M Siddiqur Rahman said this while speaking at the press conference.
He said that apparel industries are already under pressure with a rise in cost of production by 25 to 39 per cent. If gas price increased, it would erode competitiveness of manufacturing units and hurt export growth. So, it is not right time to increase the price of gas,” the BGMEA President said.
The BGMEA leader urged the government to drop the gas tariff hike move considering the interest of the country’s largest export sector.
“The government should not increase the utility prices at least for two years,” he added.
M Siddiqur Rahman suggested the government for formulating a long-term energy pricing policy to sustain industrial growth and attract necessary investment.
Terming the year 2019 as a ‘turning point’ for RMG sector, BKMEA acting President Mansur Ahmed said, if gas and electricity tariff hiked in this year, it would raise the cost of doing business making it very difficult to carry on production of the apparel units.
He demanded not to increase the price of gas and electricity again to help survive the garment sector.
