12:12 am, Friday, 17 January 2025

Bangladesh’s textile output dives amid gas crisis

Production has sharply declined by 50-65 percent across more than 1,000 textile mills in Bangladesh due to a severe gas shortage, according to the Bangladesh Textile Mills Association.

Textile sector leaders assert that mills in key regions like Narayanganj, Gazipur, Narsingdi, Savar, Ashulia, Maona, and others are grappling with near-impossible production conditions due to the gas crisis.

These mills have endured gas pressures ranging from 0 to 2 pounds per square inch over the past month, causing significant damage to sophisticated machinery.

President of BTMA Mohammad Ali Khokon disclosed that 70 percent of their member mills are situated in these affected areas.

In a recent letter to Zanendra Nath Sarker, Chairman of Bangladesh Oil Gas and Mineral Corporation (Petrobangla), Khokon urgently called for uninterrupted gas supply to the textile sector.

Despite increased gas tariffs paid by mills for over a year, Khokon lamented the failure to meet desired gas supply levels.

He emphasized that production disruptions are impeding mills from fulfilling export orders, raising concerns about timely bonus and wage disbursements with Eid-ul-Azha looming.

Expressing grave apprehension about the sustainability of mill operations, Khokon underscored the lack of progress in addressing the acute gas shortage despite repeated appeals to relevant government bodies.

The letter highlighted the textile and clothing sector’s substantial contribution to the national economy and pointed out severe disruptions in normal production activities over the past three years due to electricity and gas shortages.

It noted that mills have operated at only 40-50 percent of their capacity in recent months, leading to increased fabric processing costs, decreased yarn and fabric production, and escalated overall production costs, significantly eroding the sector’s competitiveness.

Khokon stressed that this situation directly impacts the export-oriented garment industry, warning that failure to supply yarn/cloth to garment manufacturers on time due to gas shortages could make timely shipment of goods impossible.

BTMA indicates that almost all spinning, weaving, dyeing, printing, and finishing mills in the country rely on captive power generation, with their boilers dependent on gas.

Therefore, ensuring uninterrupted and regular gas supply is imperative for both operations.

Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association, highlighted the severe impact of gas shortages and recent load shedding on knitwear exports.

He said that many knitwear manufacturers in Narayanganj struggle to meet export deadlines due to utility shortages causing production delays.

Bangladesh’s textile output dives amid gas crisis

Update Time : 09:47:04 pm, Wednesday, 5 June 2024

Production has sharply declined by 50-65 percent across more than 1,000 textile mills in Bangladesh due to a severe gas shortage, according to the Bangladesh Textile Mills Association.

Textile sector leaders assert that mills in key regions like Narayanganj, Gazipur, Narsingdi, Savar, Ashulia, Maona, and others are grappling with near-impossible production conditions due to the gas crisis.

These mills have endured gas pressures ranging from 0 to 2 pounds per square inch over the past month, causing significant damage to sophisticated machinery.

President of BTMA Mohammad Ali Khokon disclosed that 70 percent of their member mills are situated in these affected areas.

In a recent letter to Zanendra Nath Sarker, Chairman of Bangladesh Oil Gas and Mineral Corporation (Petrobangla), Khokon urgently called for uninterrupted gas supply to the textile sector.

Despite increased gas tariffs paid by mills for over a year, Khokon lamented the failure to meet desired gas supply levels.

He emphasized that production disruptions are impeding mills from fulfilling export orders, raising concerns about timely bonus and wage disbursements with Eid-ul-Azha looming.

Expressing grave apprehension about the sustainability of mill operations, Khokon underscored the lack of progress in addressing the acute gas shortage despite repeated appeals to relevant government bodies.

The letter highlighted the textile and clothing sector’s substantial contribution to the national economy and pointed out severe disruptions in normal production activities over the past three years due to electricity and gas shortages.

It noted that mills have operated at only 40-50 percent of their capacity in recent months, leading to increased fabric processing costs, decreased yarn and fabric production, and escalated overall production costs, significantly eroding the sector’s competitiveness.

Khokon stressed that this situation directly impacts the export-oriented garment industry, warning that failure to supply yarn/cloth to garment manufacturers on time due to gas shortages could make timely shipment of goods impossible.

BTMA indicates that almost all spinning, weaving, dyeing, printing, and finishing mills in the country rely on captive power generation, with their boilers dependent on gas.

Therefore, ensuring uninterrupted and regular gas supply is imperative for both operations.

Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association, highlighted the severe impact of gas shortages and recent load shedding on knitwear exports.

He said that many knitwear manufacturers in Narayanganj struggle to meet export deadlines due to utility shortages causing production delays.