Hike in production costs, due to the decision of the government to use the Liquefied Natural Gas, has caused the textile millers, a fear to lose the ability to compete with the global market.
While addressing a press conference on the Dhaka International Textile and Garment Machinery Exhibition (DTG)-2017, the president of Bangladesh Textile Mills Association (BTMA); Tapan Chowdhury made the statement addressing the emerging critical situation in the textile market.
Speaking on the occasion, the sector people also claimed that scarcity of lands and insufficient provision of electricity and gas are major barriers to the investment and growth of private sector.
On the other hand, the government is going to establish an LNG terminal in Kutubdia Island to supply imported gas to the industry people because expected is to witness scarcity of natural gas in future.
In response to a question, Tapan said that; “It would be very difficult to remain competitive in the global markets after using LNG in the manufacturing units as it would increase the production cost.” He further added that: “We are yet to get any clarification about the possible LNG pricing and another related process although we have heard that per unit gas may cost Tk14, which would hit hard the spinning industry.
” Tapan also pointed out the low or limited investment in the relevant sector and explained that the scarcity of natural resources and land are considered as the major barriers to the investment in the private sector.
If the sector is not served with the required facilities the impact is obvious in the apparel and textile industry. Currently, country’s textile industry has an investment of US billion while RMG and textile sector contribute about 86% of total export and textile industry’s contribution to GDP is 13%.
