Ensure Quality Gas Supply At Current Price To Save Industry

Businesses accepted the gas price hikes during the former government's regime due to the assurance of quality gas supply on an uninterruptible basis.

- Anwar-ul Alam Chowdhury

The industry paid a higher price, but the government failed to ensure a quality gas supply. Yet the interim government plans to increase the gas prices again for the industry and captive power generation. The textile sector will lose competitiveness in the global market if industries do not get quality gas supply as per demand and at the existing price. Many industries have already closed business while many others have grown sick. We have made it clear that amid the present state of industries, if gas and electricity prices are increased, entrepreneurs should have the option to exit from the business honorably.

The businesses have already rejected the government's proposal for increasing the gas prices for new industries. However, the government stated its inability to provide subsidies anymore. What would you say?

Please note that the spinning and weaving segments have flourished as a dream backward linkage of the garments sector. These are supplying yarn and fabric to the readymade garments sector competing with the raw materials imported from India and China. Now the cost of production has already become higher than that of India and China. Hence the RMG sector has lost incentive in using local raw materials and has leaned towards import. Spinning and weaving industries have lost competitiveness despite increasing productivity and enhancing fuel efficiency. The main reason is the poor quality of the gas supply. The gas crisis continued compounding over the past four years. Gas price for industries and captive generation was increased by 176% to Tk 30 per MSCF on condition of ensuring quality gas supply. But unfortunately, the gas supply situation did not improve. The price of processing gas has been increased to Tk 30.75/unit and for captive generation to Tk 31.50/unit.