BTMA urges adviser to solve gas problems

BTMA urges adviser to solve gas problems

The Bangladesh Textile Mills Association (BTMA) has urgently called on the government to address the severe gas supply crisis affecting the textile industry, warning of dire consequences if immediate action is not taken. Here are the key points from the search results:

1. Significant disruptions to production Textile mills are operating at only 30-50% capacity due to inconsistent gas supply, leading to significant financial losses and an inability to meet export deadlines.

Factories in industrial hubs like Narayanganj, Savar, Gazipur, and Ashulia are experiencing critically low gas pressure (1-2 psi), severely hampering operations.

2. Financial and Export Crisis

The gas shortage has eroded working capital and reduced Bangladesh’s competitiveness in global markets due to rising production costs.

Some mills, like Noman Group (with 28 factories), have nearly suspended operations, while others face severe disruptions.

3. Demands for Government Intervention

BTMA has requested:

Restoration of pre-2022 gas prices (before the 150-179% hike) until the crisis is resolved.

Priority gas allocation for industries over households and CNG stations, arguing that LPG could replace domestic gas use.

Immediate measures to ensure uninterrupted supply, as promised after the price hike.

4. Broader Economic Risks

In the lead-up to Eid al-Azha, the crisis poses a threat of widespread factory closures and labor unrest over unpaid bonuses and wages. BTMA alleges that foreign actors may be inciting unrest to divert orders from Bangladesh to competing countries 6.

5. Government Response

Petrobangla has added 300 MMCF of LNG to the grid, but most is diverted to power plants, leaving industries underserved.

Adviser Salman F. Rahman has acknowledged the issue but concrete solutions remain pending.

BTMA’s appeals highlight the textile sector’s critical role in Bangladesh’s economy, employing millions and contributing significantly to exports. The association stresses that without swift action, the crisis could escalate into broader economic instability 

The critical gas shortage that has compelled textile mills to operate at only 30 to 50 percent capacity has been highlighted by the BTMA, resulting in significant financial losses and a decrease in their export competitiveness. Appeal to Government: BTMA President Showkat Aziz Russell and Mohammad Ali Khokon have written to the Ministry of Power, Energy, and Mineral Resources, urging swift action to restore stable gas supply. They warned that without intervention, many mills may shut down, risking labor unrest ahead of Eid-ul-Azha.

Price Hike Without Supply Improvement: Despite a 150-179% increase in gas prices for industries in 2023, promised uninterrupted supply has not materialized. Until the crisis is resolved, the BTMA demands that prices be rolled back to pre-2023 levels. Supply Prioritization Issues: Titas Gas has diverted gas supplies to the power sector, exacerbating shortages for textile manufacturers. Industrial hubs like Narayanganj, Savar, and Gazipur face critically low gas pressure (1-2 psi), severely hampering production.

Broader Economic Impact: The crisis is compounded by rising electricity costs, dollar shortages, high bank interest rates, and currency devaluation. The BTMA warns of possible factory closures and order diverts to countries nearby. The BTMA's appeals emphasize the importance of Bangladesh's textile industry to the economy and the urgent requirement for government action to alleviate .