PM's intervention sought to improve gas, power supply
Thursday, 25 March 2010
FE Report
The country's knitwear manufacturers have sought Prime Minister's intervention for improving the gas and power supply to the industrial sector by rationing gas from the CNG stations and fertiliser factories.
They also urged the government to form a 'yarn price monitoring cell' to check frequent ups and downs in the prices of yarn in the local market and demanded withdrawal of tax from the diesel-used export-oriented industrial sector.
"The supply of power and gas in the factories has declined sharply and the international buyers are offering very low prices for the Bangladesh-made garment products," Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Wednesday.
He was speaking at a press conference at the association office.
"As a result, the country is losing its competitiveness in the apparel business in international markets," Hoque added.
He said the overall exports of Bangladesh to European market showed a negative growth at 0.2 per cent whereas the growth of knitwear export increased only 0.19 per cent in 2009.
The knitwear exports to USA registered 9.95 per cent negative growth in 2009 from 15 per cent in 2008, he said.
The BKMEA president said the woven export to USA stood at 3.47 per cent in 2009 from 10.69 per cent in 2008.
On the other hand, the export of knitwear items from China to USA increased to 7.26 per cent in 2009 from 1.13 per cent in 2008, he added.
China has reduced the prices of apparels by 3.6 per cent to increase the exports to European markets. Chinese exporters could reduce the apparel price as their government offered incentive but we are yet to get it, he said.
He said China exported 552 million dozen pieces of knitwear items to Europe on this reduced price in 2009.
He demanded effective implementation of the second stimulus package so that the sector could retain its market.
The production of clothes and yarn in the knitwear sector declined by 4.0 per cent due to one-hour suspension of gas in the factories. Similarly, the sector faces 10 per cent production loss due to frequent power outages.
He said the government should waive tax from diesel. "We need to pay Tk 4.72 for per unit of electricity but our cost increases to Tk 14.16 per unit if we use diesel to generate electricity" he said.
The current tax for per litre diesel is Tk 10-11. The government might lose some revenue but it would be beneficial for the survival of the industry.
He said, at present the yarn prices are volatile in the local market, as the manufacturers increase the prices of the yarn in an excuse of price hike of the item in the international market.
The 30 single carded yarn is now selling at $3.35-$3.50 per kg, which was priced at $2.40 per kg three to four months ago, he added.
Abdur Rashed, first vice-president, MA Baset, second vice-president and Zahidul Hoque Bhuiyan, vice-president of BKMEA, among others, were present at the press briefing.
Meanwhile, BSS adds: The Energy Division of the Ministry of Power, Energy and Mineral Resources Wednesday directed the Petrobangla to allocate more gas to the power sector to help reduce the frequent power outage and keep the load-shedding within a tolerable level.
The Energy Division also asked the Petrobangla officials to work on gas staggering issue or explore the way to stop the misuse of gas to further accelerate power generation in the country.
The country's knitwear manufacturers have sought Prime Minister's intervention for improving the gas and power supply to the industrial sector by rationing gas from the CNG stations and fertiliser factories.
They also urged the government to form a 'yarn price monitoring cell' to check frequent ups and downs in the prices of yarn in the local market and demanded withdrawal of tax from the diesel-used export-oriented industrial sector.
"The supply of power and gas in the factories has declined sharply and the international buyers are offering very low prices for the Bangladesh-made garment products," Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Wednesday.
He was speaking at a press conference at the association office.
"As a result, the country is losing its competitiveness in the apparel business in international markets," Hoque added.
He said the overall exports of Bangladesh to European market showed a negative growth at 0.2 per cent whereas the growth of knitwear export increased only 0.19 per cent in 2009.
The knitwear exports to USA registered 9.95 per cent negative growth in 2009 from 15 per cent in 2008, he said.
The BKMEA president said the woven export to USA stood at 3.47 per cent in 2009 from 10.69 per cent in 2008.
On the other hand, the export of knitwear items from China to USA increased to 7.26 per cent in 2009 from 1.13 per cent in 2008, he added.
China has reduced the prices of apparels by 3.6 per cent to increase the exports to European markets. Chinese exporters could reduce the apparel price as their government offered incentive but we are yet to get it, he said.
He said China exported 552 million dozen pieces of knitwear items to Europe on this reduced price in 2009.
He demanded effective implementation of the second stimulus package so that the sector could retain its market.
The production of clothes and yarn in the knitwear sector declined by 4.0 per cent due to one-hour suspension of gas in the factories. Similarly, the sector faces 10 per cent production loss due to frequent power outages.
He said the government should waive tax from diesel. "We need to pay Tk 4.72 for per unit of electricity but our cost increases to Tk 14.16 per unit if we use diesel to generate electricity" he said.
The current tax for per litre diesel is Tk 10-11. The government might lose some revenue but it would be beneficial for the survival of the industry.
He said, at present the yarn prices are volatile in the local market, as the manufacturers increase the prices of the yarn in an excuse of price hike of the item in the international market.
The 30 single carded yarn is now selling at $3.35-$3.50 per kg, which was priced at $2.40 per kg three to four months ago, he added.
Abdur Rashed, first vice-president, MA Baset, second vice-president and Zahidul Hoque Bhuiyan, vice-president of BKMEA, among others, were present at the press briefing.
Meanwhile, BSS adds: The Energy Division of the Ministry of Power, Energy and Mineral Resources Wednesday directed the Petrobangla to allocate more gas to the power sector to help reduce the frequent power outage and keep the load-shedding within a tolerable level.
The Energy Division also asked the Petrobangla officials to work on gas staggering issue or explore the way to stop the misuse of gas to further accelerate power generation in the country.