Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Monday, February 27, 2017 02:55:06 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Gas price hike proposal flayed

Textiles sector to hit-hard

By
10th-Jan-2017       Readers ( 174 )   0 Comments
Comments
Share your thought
Post a comment »
Read all (0) »

Kazi Zahidul Hasan :
Textile and clothing industry owners on Monday strongly criticised the proposed 130 per cent hike in gas price for captive power generation plants saying that it would adversely affect their industries, which are already facing tough competition in the international market.

They said, Bangladesh's textile and apparel products are already facing stiff competition in the global market after increase in cost of production as a result of electricity and gas price hike in several times. Another increase in gas price would render them further uncompetitive in the world market, they added.

"The textiles sector is heavily burdened with exorbitant electricity and gas bills coupled with lower productivity. This leads to higher cost of production making Bangladesh's textile products uncompetitive as compared to its competitors," Tapan Chowdhury, President of Bangladesh Textile Mills Association (BTMA) told The New Nation on Monday.

The sector is already struggling for the unabated import of cheap fabrics and yarns from China and India. If gas price is hiked again, it will pose a big threat to the survival of local textile industries, he said.

Tapan Chowdhury further said if the gas price is hiked, spinners will not be able to supply the raw materials to the knitters and garment producers at competitive prices. In such a situation, they would switch to imported yarns making local spinning mills vulnerable. 

Terming the proposed gas price hike 'illogical,' the BTMA leader urged the government to retreat the proposal immediately for the betterment of textile sector.

Tapan Chowdhury also suggested the government to formulate a long-term energy pricing policy for the sustainable development of the sector as well as accelerating industrialisation. All of textile sub-sectors, including processing, weaving, spinning, yarn, knitting and garment units, used gas in their captive power generation plants.

"Gas price hike would increase their cost of power generation and augment cost of business which would ultimately make country's textile export uncompetitive in respect of other regional countries, including India, Pakistan and Vietnam," Mohammad Hatem, former Vice-President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) told The New Nation yesterday.

He said that the knitting sector is already passing through a bad time and hike in gas prices would increase their cost of production and reduce their profit margin drastically. "Gas price hike would not be viable for the sector and it would lead to closure many small and medium factories, rendering thousand of workers unemployed," he feared.

Critisising the government's initiative to hike gas price again, Hatem said, "The business community is against the move of fresh energy price hike. We cannot accept such a move which ultimately affect the industrial production as well as create an anti-industrial environment within the country."

M Siddiqur Rahman, the President of Bangladesh Readymade Garments Manufacturers and Exporters Association (BGMEA), flayed the 130 per cent increase in gas tariff and said that it would adversely affect export-oriented clothing industries. "We have already conveyed our concern to the government. We urged the government not to go for a fresh gas price hike considering capacity of the industry," he added.

The Bangladesh Energy Regulatory Commission (BERC) has proposed to hike the price of gas to Tk 19.26 per cubic metre for captive power plants from Tk 8.36 now. The government had already raised the price of gas for captive power plants in September 2015 from Tk 4.36 per cubic metre to the current rate.

Captive power generators account for 17 per cent of total gas consumption, according to data from Petrobangla, the national oil, gas and mineral exploration company.

0 Comments. Share your thoughts also.
Write a comment
Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Businessmen are panicked from gas price hike


THE latest gas price hike has sparked widespread public reaction while the business chambers and trade associations are anticipating as a deathblow to keep their manufacturing and exports running. Meanwhile the concerned government minister said electricity price hike will be implemented soon and may be another hike of water price ...

Football »

Mandzukic inspires Juve to easy Empoli win


AFP, Milan :Mario Mandzukic overcame a wasteful first half to inspire Juventus to a 2-0 home win over Empoli that edged the Turin giants closer to a record sixth straight Serie A title.Juventus, claiming their 22nd win in 26 games, moved 10 points clear of closest challengers Roma ahead of ...

City »

Nagorik Committee staged a sit-in in front of the Jatiya Press Club on Sunday in protest against price hike of gas.


International »

Hillary calls for 'resistance and persistence' from Democrats


AP, Atlanta :In a video released Friday, Hillary Clinton encouraged Democrats to "move forward with courage, confidence and optimism" as the party prepares to rebuild after losing the White House and failing to gain majorities in either house of Congress in the November elections.The three-minute video was posted online shortly ...

Entertainment »

Ayesha Takia shuts down trollers over plastic surgery row


Actress Ayesha Takia Azmi has slammed all those who trolled her over various social media platforms for getting under the knife. Ayesha attended an event, where her swollen lips and cheeks made people wonder if she had undergone plastic surgery. She later became a victim to trolls, where many began ...

Entertainment »

Priyanka to attend Oscars this year too


Internationally acclaimed Bollywood actress Priyanka Chopra has announced that she will be attending the upcoming 89th Academy Awards. Priyanka took to Instagram on Friday night to share the news with her fans while posting a photograph with legendary British singer Mick Jagger. “Change of plans! Oscars here we come. Mick ...

Editorial »

Fake insulins causing more sufferings to many


DESPITE the irregular crackdown on adulterated drugs, the business of illicit, substandard, counterfeit and life-endangering medicines is becoming rampant enough to  pose a severe public health danger in the country. A New Nation report on Thursday said fake insulin injections, a life-saving hormone for diabetic patients, have flooded the medicine ...

Cricket »

Mustafiz gets his rhythm and confidence


Sports Reporter :'Wonder Boy' Mustafizur Rahman has got his rhythm and confidence. Members of Bangladesh National Cricket team took part in their practice session at the Sher-e-Bangla National Cricket Stadium in Mirpur on Saturday. After the practice session Mustafizur Rahman said, " I played two matches in Bangladesh Cricket League ...

City »

Family members of those who were killed in BDR mutiny seeking divine blessings for the departed soul after placing floral wreaths at their graves. The snap was taken from the city`s Banani Army Graveyard on Saturday.


International »

Democrats elect new leader to lead campaign against Trump, Republicans


AP, Washington :Democrats have tapped former Gov. Steve Beshear to deliver the party's response to President Donald Trump's address to a joint session of Congress Tuesday night, highlighting the Kentucky Democrat's efforts to expand health care coverage under the law Republicans are determined to repeal and replace.Senate Minority Leader Chuck ...

Entertainment »

Sara Ali Khan will not debut in SOTY 2


The industry was abuzz with news that Sara Ali Khan will debut in SOTY 2 opposite Tiger Shroff and her making a public appearance with Karan Johar at Shahid Kapoor's bash kind of sealed the deal. But insiders reveal that Saif Ali Khan's pretty lil' doll doesn't want to debut ...

Editorial »

VIPs should concern with public safety, not their own special safety


IN a bid to boost the existing security facilities to our VIPs - Ministers, Members of Parliament, state Ministers, Deputy ministers and judges for that matter - the government is about to form a special police unit. The police headquarters have submitted a proposal to the Home Ministry in this ...

City »

Secretary of Rural Development and Cooperatives Division Dr Proshanto Kumar Roy, among others, at an orientation on 'Role of One House, One Farm in Achieving SDGs' in CIRDAP Auditorium in the city on Friday.


.

Entertainment »

Is Deepika doing the remake of Mr & Mrs Smith?


Bollywood actress Deepika Padukone on Thursday negated the reports that she was doing the official remake of Hollywood movie Mr & Mrs Smith. “Well, let’s set the record straight because there have been a lot of rumours regarding a lot of films I am supposedly doing. I think usually there ...

Cricket »

O`Keefe, Smith flatten India on day 2 in 1st Test


AFP, Pune :Left-arm spinner Steve Keefe grabbed a career-best haul of 6-35 to put Australia on top before skipper Steve Smith compounded India's misery with an unbeaten fifty in the first Test in Pune Friday.The visitors reached 143-4 at stumps on day two, which saw a total of 15 wickets ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news