Spinning mill
Spinning mill

Production declines

660 textile mills suffering from gas shortage

Mosharraf Composite Textile in Bhabanipur of Gazipur Sadar has five units producing yarn. Under normal circumstances, the factory produces 170 tonnes of yarn a day.

However, due to the gas shortage, production has fallen to just 30 per cent of capacity for more than a month. During this period, the factory has had to maintain limited production with the help of rural electricity and diesel-powered generators.

Mosharraf Hossain, managing director of Mosharraf Composite Textile, told Prothom Alo yesterday, Thursday, that gas pressure had risen to 3–4 PSI over the past two days.

However, production had not increased significantly. He said the factory had suffered losses of around Tk 50 million over the past month because of reduced production. This had also created financial pressure in paying workers’ salaries and benefits.

Like Mosharraf Composite Textile, 660 textile mills across the country have been suffering from a severe gas shortage since the third week of July. Production at these factories has been partially halted. Meanwhile, 244 textile mills have remained closed since 2019.

The Bangladesh Textile Mills Association (BTMA), the organisation representing textile mill owners, informed the Ministry of Commerce of this situation in an email last week.

The organisation said it was reviewing and verifying the current condition of the textile mills. After completing the assessment, it would soon submit a formal proposal to the ministry outlining the necessary measures and support required to revive the factories.

Senior officials of textile mills in Gazipur, Narsingdi and Narayanganj said the gas situation had improved somewhat in some areas over the past two or three days.

However, the crisis had not yet ended in many areas. As a result, production continued to be disrupted, while the prolonged shortage was causing financial losses for the companies.

On 21 July, an LNG terminal operated by Excelerate Energy was shut down following a fire accident. Since then, industrial plants across the country have faced a severe gas shortage. Gas supplies from Summit’s terminal were also disrupted during the period.

Excelerate’s terminal resumed partial operations and Summit’s terminal became fully operational on 15 August. However, before the crisis could fully ease, gas supplies from Excelerate’s terminal were suspended again because of a cargo-related problem.

The terminal resumed operations on 22 August after remaining shut for three days. Since then, gas supplies to industrial plants have increased somewhat in some areas.

Bhuiyan Textile and Calendar Mills in the Satirpara area of Narsingdi city remained closed for 22 consecutive days because of the severe gas shortage. Although production resumed last week, the factory could operate only at night because gas pressure would fall to almost zero during the day. The situation, however, improved from yesterday afternoon.

Anisur Rahman Bhuiyan, director of the company, told Prothom Alo, “We have been getting gas since this afternoon (yesterday). We just need a regular supply. If we can get gas for even 16–17 hours a day, we will be able to continue production.”

Although the gas situation has improved somewhat in Narsingdi, the crisis remains severe in Narayanganj. MS Dyeing Printing and Finishing, located in the BSCIC Industrial Park in Fatullah, has had no gas since 18 August. As a result, production has come to a complete halt.

The company’s general manager, Babul Hossain, said the factory could dye 110 tonnes of fabric a day. At a dyeing charge of Tk 100 per kilogram, the resulting loss was substantial. At the same time, the company was unable to supply fabric to the garment section according to demand, further disrupting production.

A similar situation has been reported in Gazipur. Although the gas situation has improved slightly at some industrial plants, many factories are still facing shortages.

The owner of a textile mill in Sreepur, speaking on condition of anonymity, said gas pressure at his factory was still below 2 PSI. As a result, the mill could utilise no more than 30–35 per cent of its yarn production capacity.

However, Masud Rana, managing director of Asia Composite Mills in the same area, said gas pressure had ranged from 3 to 7–8 PSI over the past two days. This had enabled the factory to utilise 70–75 per cent of its yarn production capacity.

According to BTMA data, there are currently more than 1,800 textile mills in Bangladesh, including 527 spinning mills. Gas supplies to textile mills in Habiganj and Chattogram are currently satisfactory, allowing production there to remain more or less normal.

Abul Kalam, vice-president of BTMA and a member of parliament, told Prothom Alo, “At my own company, Chaiti Composite in Sonargaon, Narayanganj, production has fallen to 40 per cent because of the gas shortage. This has been the situation at most textile mills for about a month.”

Regarding the impact of the gas shortage, he said, “The gas shortage has weakened our textile mills financially. As the crisis has continued for some time, foreign buyers are also becoming concerned. However, the encouraging thing is that the gas situation is improving.”

[Prothom Alo’s Narsingdi correspondent contributed to this report.]