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Home News Inadequate gas supply is having a huge impact on textile and RMG production and the economy

Inadequate gas supply is having a huge impact on textile and RMG production and the economy

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Inadequate gas supply is having a huge impact on textile and RMG production and the economy
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HomeNews & ViewsInadequate gas supply is having a huge impact on textile and RMG production and...

Inadequate gas supply is having a huge impact on textile and RMG production and the economy

Primary textile millers have expressed concerns over the deterioration of investment conditions in the textile sector due to frequent fluctuations in cotton prices, high rates of insurance premiums, invasion of unauthorized yarn and fabrics from various sources, banking problems and inadequate gas supply following price hikes.

Mahbub Khan Himel Director of Mithela Textile Industries Ltd 1
Figure: Mahbub Khan Himel Director of Mithela Textile Industries Ltd

The gas shortage has significantly affected production in factories as pressure in supply lines of some member mills has dropped to almost zero, machinery has been severely damaged and operations have been halted. Due to the severe gas shortage, machinery of textile mills is getting damaged and they are not able to supply the required yarn and fabrics to the export-oriented garment industry, while cloth processing plants have been shut down due to inability to operate gas burners and boilers.

Bangladesh has come a long way since its establishment and so has the textile and garment industry, the mainstay of the country’s current economic success. About 84% of the country’s total export earnings come from the textile and garment sector, with the primary textile sector (PTS) contributing about 64%. Primary textiles are now considered an import-substituting industry that is helping the country retain foreign exchange and enrich its foreign exchange reserves.

Gas crisis: How it started-

In January 2023, the government increased gas prices by up to 179%, promising that the additional revenue would be secured by importing LNG from the spot market. However, despite factories paying high bills for over a year, gas supplies have not met expectations, leading to severe production disruptions, industry insiders said.

They explained that the gas crisis in the country is not a new problem, the industrial sector has been facing shortages for a long time due to unmet demand. Currently, the country requires about 4,000 million cubic feet (MMCF) of gas per day, but only 3,050 million cubic feet is supplied, with industries getting about 600 million cubic feet/day, much less than their demand of 1,200 million cubic feet/day.

In the last five years, the cost of production has increased by 50 percent due to the increase in gas prices (286.5 percent), electricity prices (33.5 percent), diesel prices (68 percent) and bank interest rates (14-15 percent).

In 2025, several gas supplies in the primary textile sector, especially in the Araihajar area of ​​Narayanganj, have been showing zero gas meters for months. Where production has decreased by 60 to 70 percent due to low gas pressure. Now the textile sector is improving and buyers are placing orders but due to almost non-existent gas supply, we are not able to produce on time, resulting in losing the trust of the buyers, which will be very harmful for our country, our country’s entrepreneurs are quite hardworking and patriotic, so we want the people of our country to keep the wheels of employment and economy moving and the country’s development trend to continue.

Gas Crisis and Solutions –

We have requested the government to prioritize stability in this sector, especially during the transition to middle income status, and expressed our willingness to cooperate in finding solutions.

Our backward textile sector is already losing competitiveness to neighboring countries and if we now have to buy gas at import prices, then we will have to close our factories. I do not think this is an initiative to create jobs. Rather, millions of our workers will lose their jobs and the country’s economy will collapse.

The current interim government can close the CNG pumps and ensure adequate gas supply for industry, because it is possible to run vehicles on fuel oil but it is not possible to run industry. Besides, arrangements should be made to bring Bhola gas to the pipeline and connect it to the main grid. It should be remembered that the textile sector is the heart of the economy, if its production is disrupted, the country will lose foreign remittances. So now is the time to work together to face all the challenges and create a business-friendly environment.

Author: Mahbub Khan Himel Director of Mithela Textile Industries Ltd

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Primary textile millers have expressed concerns over the deterioration of investment conditions in the textile sector due to frequent fluctuations in cotton prices, high rates of insurance premiums, invasion of unauthorized yarn and fabrics from various sources, banking problems and inadequate gas supply following price hikes.

Mahbub Khan Himel Director of Mithela Textile Industries Ltd 1
Figure: Mahbub Khan Himel Director of Mithela Textile Industries Ltd

The gas shortage has significantly affected production in factories as pressure in supply lines of some member mills has dropped to almost zero, machinery has been severely damaged and operations have been halted. Due to the severe gas shortage, machinery of textile mills is getting damaged and they are not able to supply the required yarn and fabrics to the export-oriented garment industry, while cloth processing plants have been shut down due to inability to operate gas burners and boilers.

Bangladesh has come a long way since its establishment and so has the textile and garment industry, the mainstay of the country’s current economic success. About 84% of the country’s total export earnings come from the textile and garment sector, with the primary textile sector (PTS) contributing about 64%. Primary textiles are now considered an import-substituting industry that is helping the country retain foreign exchange and enrich its foreign exchange reserves.

Gas crisis: How it started-

In January 2023, the government increased gas prices by up to 179%, promising that the additional revenue would be secured by importing LNG from the spot market. However, despite factories paying high bills for over a year, gas supplies have not met expectations, leading to severe production disruptions, industry insiders said.

They explained that the gas crisis in the country is not a new problem, the industrial sector has been facing shortages for a long time due to unmet demand. Currently, the country requires about 4,000 million cubic feet (MMCF) of gas per day, but only 3,050 million cubic feet is supplied, with industries getting about 600 million cubic feet/day, much less than their demand of 1,200 million cubic feet/day.

In the last five years, the cost of production has increased by 50 percent due to the increase in gas prices (286.5 percent), electricity prices (33.5 percent), diesel prices (68 percent) and bank interest rates (14-15 percent).

In 2025, several gas supplies in the primary textile sector, especially in the Araihajar area of ​​Narayanganj, have been showing zero gas meters for months. Where production has decreased by 60 to 70 percent due to low gas pressure. Now the textile sector is improving and buyers are placing orders but due to almost non-existent gas supply, we are not able to produce on time, resulting in losing the trust of the buyers, which will be very harmful for our country, our country’s entrepreneurs are quite hardworking and patriotic, so we want the people of our country to keep the wheels of employment and economy moving and the country’s development trend to continue.

Gas Crisis and Solutions –

We have requested the government to prioritize stability in this sector, especially during the transition to middle income status, and expressed our willingness to cooperate in finding solutions.

Our backward textile sector is already losing competitiveness to neighboring countries and if we now have to buy gas at import prices, then we will have to close our factories. I do not think this is an initiative to create jobs. Rather, millions of our workers will lose their jobs and the country’s economy will collapse.

The current interim government can close the CNG pumps and ensure adequate gas supply for industry, because it is possible to run vehicles on fuel oil but it is not possible to run industry. Besides, arrangements should be made to bring Bhola gas to the pipeline and connect it to the main grid. It should be remembered that the textile sector is the heart of the economy, if its production is disrupted, the country will lose foreign remittances. So now is the time to work together to face all the challenges and create a business-friendly environment.

Author: Mahbub Khan Himel Director of Mithela Textile Industries Ltd