Gas crunch causes textile mills to incur $1.75b production loss in three months
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Bangladesh Textile Mills Association (BTMA) on Saturday claimed that export-oriented factories have incurred production loss worth US$1.75 billion in the last three months due to poor gas supply.
A good number of spinning, weaving, dyeing and printing mills located in industrial zones including Dhaka, Gazipur, Savar, Ashulia and Narsingdi are not fully operational due to gas crunch, it said.
In such a situation, if the proposed 103 per cent or 116 per cent gas price hike is implemented, they have to bear additional electricity cost of Tk 20.47 to Tk 23 to produce per kg of yarn, warned the trade body.
"The overhead per kg production cost of yarn will double or 50 cents from its existing rate of 25 cents if the proposed gas hike comes into effect," BTMA President Mohammad Ali Khokon said while addressing a press conference held at a city hotel.
The BTMA leader feared the closure of primary textile mills, saying they would lose their competitiveness and fail to survive.
The textile millers demanded that the government ensure uninterrupted gas supply and refrain from increasing gas price during the recovery period of the garment sector hit hard by the pandemic.