Increased fuel prices to raise terry towel production cost

The latest hike in prices of all fuel oils would increase the monthly production cost of the country's terry towels and other home textile products up to six per cent, affecting their growth.

"Monthly US$7.0-$8.0 million or Tk750 million production cost would be added as the enhanced fuel oil prices would raise the overall manufacturing cost at least by 5.0-6.0 per cent," says M Shahadat Hossain, chairman of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA), in a statement on Sunday.

The BTTLMEA members' monthly average exports are worth $175 million, of which 90 per cent is their production cost, Mr Hossain claimed.

He demanded a subsidy equal to 50 per cent of their enhanced production cost.

"We believe that the government is well informed about the negative impact of fuel oil price hike and will raise the price taking the global scenario into consideration," he added.

The BTTLMEA leader also expects that the government would extend all-out support to the export-oriented readymade garment and textile sector to avert the negative impact as provided to offset the impact of the coronavirus pandemic.

munni_fe@yahoo.com