The majority of textile mills are currently only operating at 30 per cent capacity, thus on Wednesday, textile millers urged the interim administration to act quickly to enhance gas and power supply to manufacturing units. Additionally, they pleaded with the authorities to promptly restore peace and order since clothing factories are having difficulty maintaining operations.
They insisted that all land ports be closed to the import of yarn from India, as significant amounts are coming in without the required paperwork and quality control, hurting the US $ 22 billion domestic primary textile industry’s sales.
The millers stated that since the port of Chittagong has capabilities for quality control, yarn imports are permitted. They also urged to stipulate that any yarn which is sought to be imported from India needs to undergo quality tests at the Bangladesh University of Engineering and Technology.
In most cases, double the quantity mentioned in letters of credit is being imported through misdeclarations, said leaders of the Bangladesh Textile Mills Association (BTMA) at a press conference at its office in Dhaka.
Over the last eight months, textile millers at Bhulta, Gausia, Rupganj and Narayanganj areas have been suffering a lot because of low gas pressure in the supply lines, said BTMA Vice-President Md Saleudh Zaman Khan.
The textile mills are being run with alternative fuels such as diesel, methane-based compressed natural gas and liquified petroleum gas, which is composed of propane, butane, propylene, butylene, and isobutane, he said. This is also increasing the cost of production.
The mills are running at only 30 per cent capacity and falling behind in competition with Indian companies as the latter get adequate gas supply alongside government incentives, he added. Furthermore, he claimed that in the previous two to three years, gas prices in Bangladesh had increased by more than 400 per cent.
According to BTMA President Showkat Aziz Russell, a letter has already been sent to Muhammad Yunus, the chief adviser to the interim administration, requesting an assessment of Bangladesh’s eligibility to move from the least developed to the developing category of the UN in 2026.
This is because, according to him, state data errors during the previous administration’s time caused export estimates to be exaggerated by almost US $ 14 billion, to nearly US $ 48 billion in the fiscal year 2022–2023. Additionally, he asked banks to offer loan rescheduling options because during the last two months, political upheaval has negatively impacted enterprises.
Furthermore, he said, in order to boost local industry competitiveness, the interim Government ought to offer incentives to the main textile sector.
Russell expressed his expectation for changes in the state of law and order, stating that it was particularly important for the efficient running of clothing manufacturers. Along with other members of the BTMA, he accused “outsiders” of destruction at clothing companies recently.
The officials of the BTMA stated that while hundreds of garment companies have been experiencing labor unrest due to various demands, no textile mill has been assaulted thus far.