Gas price hike to hit RMG sector hard: BTMA

Primary textile millers fear that the proposed gas-tariff hike would create an adverse impact on the local backward-linkage industry in the ready-made garment sector.
The Bangladesh Textile Mills Association (BTMA) in a statement on Tuesday said the trade body came to know that gas-tariff had been proposed to be enhanced to Tk 28 per cubic metre shortly from the existing Tk 13.85 per cubic metre.
On March 22, the technical evaluation committee of the Bangladesh Energy Regulatory Commission (BERC) recommended a 20 per cent hike in piped gas price amid opposition from the BTMA and other stakeholders. Earlier, an average 117 per cent rise was proposed.
The BTMA statement, signed by its additional director and chief executive officer (in-charge) Monsoor Ahmed, has said the textile industry, especially the spinning mills, are facing severe problems now due to container crisis and rising trend of imported cotton price.
"The price of cotton has increased to US 1.80 cents in this May -- from 0.95 cents of the corresponding month last year," it said.
In such a situation, the planned Tk 28 per cubic metre gas tariff hike will increase the unit cost of per kg yarn by 0.50 cents -- resulting a huge production cost hike. The gas tariff hike will also allow entry of unauthorised yarns and increase raw material import, it has noted.
The BTMA has urged the government to fix a reasonable gas tariff to help the textile industry sustain.

Munni_fe@yahoo.com