Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Primary textile millers have urged the government to ensure smooth supply of gas as its short supply compelled the factories to cut production, causing substantial financial losses.
They cannot utilize full production capacity, resulting in gradual shrinking of working capital and erosion of export competitiveness, Bangladesh Textile Mills Association (BTMA) said in a letter to the Ministry of Power, Energy and Mineral Resources on Sunday.
The trade body claimed that the textile mills cannot meet the supply deadlines of export orders while losing competitiveness in the international market because of consequential increase in production costs.
It also warned that a good number of mills might face closure if the current gas supply situation persists and might lead to labour unrest ahead of Eid-ul-Azha over non-payment of wages and festival allowances.
Signed by BTMA President Showkat Aziz Russell, the letter mentioned the ongoing challenges faced by the industry. These include abnormal rise in the prices of gas and electricity, the dollar crisis, rise in the bank interest rates, cuts in cash incentives and devaluation of local currency against the greenback.
In spite of these challenges, failure to utilize the full production capacity has resulted in the gradual shrinking of working capital, reducing export competitiveness in the global market, he explained.
Mills located in various industrial areas have been unable to produce products at the desired level for a long time due to the shortage of gas supply.
The BTMA leader said they are aware that Titas Gas has recently increased supplies to the power sector by further cutting allocations for the industrial sector.
Citing the example of Noman Group that operates 28 factories, he said production in most of the group's factories is almost suspended while manufacturing activities in the rest of the units are severely disrupted.
"As a result, mills are facing huge financial losses as they cannot produce enough to meet the export orders," the BTMA president said, urging the government to take required measures for ensuring smooth supply of gas.
Munni_fe@yahoo.com