The energy ministry is moving fast to increase gas price for the captive power plants by 130 per cent. The current gas price for the captive power plant is Tk 8.36 per cubic meter (mcf), which would be Tk 19.22 per mcf if the proposed gas pricing structure is approved by the cabinet. Business leaders did not find any logic in the energy ministry’s move for increasing gas price for the captive power plants which are the principle source to meet the power demand of the country’s textile sector. The government considers that these power plants misuse gas, which is repeatedly denied by the textile sector business leaders. Around 400 spinning mills and weaving mills are now running with the electricity of captive power plants, which ensures uninterrupted power supply. The captive power users are textile, garments and knitwear manufacturing units. These units too depend on captive power plants to meet their electricity requirement. If the propose gas price structure is put in operation the whole textile sector would lose its competitive edge. The BTMA source said that after increasing gas price in last September, the profit margin from the sale of yarn declined to below US$1 per kg. The source also said that last gas price restructuring resulted decrease of production in the spinning mills. The 400 spinning mills have a spinning capacity of 10 million bales per year but considerable portion of spinning capacity remained unutilized because of higher energy price and inadequate power and gas supply to the production units. The BTMA President Tapan Chowdhury said that the textile sector as a whole and the spinning sector would hit hard if the gas price is increased further. Bangladeshi spinners will face pressures as international yarn producers will then supply their products in the local industry at a lower price. The BTMA source said that Bangladesh yarn market again would be flooded with the Indian yarn if the proposed primary energy price put into action. The BGMEA first vice-president Faqrue Hasan opposed fresh gas price hike. He said due to increase of cost of production in China, an opportunity has been opened for Bangladesh garment sector for further flourish, which could be hampered if the gas prices increased further. The World Bank (WB) in its recent study said that South Asia can create millions of new jobs in the apparel industry by taking advantage of rising manufacturing cost in China. According to the study, wage, a key component in apparel industry, is half a dollar per hour for a worker in Bangladesh, which is over a dollar in India and US$2.5 in China.
