Natural gas price increases will affect the development of Bangladesh’s textile industry

According to a report by Financial Express on July 31, in response to the proposal to increase natural gas prices, Tapan Chowdhury, president of the Bangladesh Textile Enterprises Association (BTMA), said that if the proposal is accepted by the government, most textile companies that rely on natural gas for power generation will not be able to survival, the natural gas crisis will also hinder new investment in this field. At present, there are about 430 textile enterprises in Bangladesh, responsible for the supply of raw materials for 80% of the knitting industry and 40% of the woven industry. In September 2014, the government raised the price of natural gas by 100%, and now plans to raise it again by 130%. For companies that rely on natural gas for power generation, the price of natural gas per cubic meter will increase from 8.36 Taka to 19.36 Taka, which means that per kilogram of yarn 14% of the sales price is the cost of natural gas. Under the fierce competition in international markets such as China and India, it will be difficult to maintain the price advantage. BTMA calls on the government to suspend increases in natural gas prices and establish a long-term pricing mechanism for gradual adjustments based on consultation. Natural gas price increases will affect the development of Bangladesh’s textile industry