Over 900 textile mills shut as gas supply shows no sign of improvement

Infographic/TBS

Despite recent government assurances, gas supplies to industrial areas have not improved so far, forcing more than half of the country's textile mills to shut completely, industry insiders said.

Other industries, including ready-made garment, steel, and paper, are also operating far below their capacity as the prolonged gas shortage continues to disrupt production.

On 6 August, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood assured industry stakeholders that the gas supply situation would improve. However, there had been no significant improvement as of yesterday, leaving industrialists frustrated.

Industry owners in Narayanganj, Savar, Gazipur, Mymensingh, Manikganj and other industrial areas said they saw a slight improvement in gas supplies last Friday in some areas. The situation, however, deteriorated afterwards, returning to previous levels or becoming even worse.

Yesterday, a group of weaving workers in Madhabdi, Narsingdi – a major hub of the country's weaving industry – reportedly took to the streets to demand uninterrupted electricity and gas supplies.

However, the officer-in-charge of Madhabdi Police Station denied that any such incident had taken place when speaking to The Business Standard.

Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), told TBS that more than 900 of the association's over 1,800 member textile mills were currently completely shut because of gas supply disruptions.

"Not only textile mills, but also gas-dependent steel, paper, particle board and ceramic industries are facing severe production disruptions due to the prolonged gas crisis," he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told TBS, "We observed a slight improvement in gas supply in the Narayanganj area on Monday. However, the situation further deteriorated today [yesterday]."

A managing director of a leading spinning mill in Araihazar, Narayanganj, who spoke on condition of anonymity, said gas pressure at the factory had fallen to almost zero, far below the government's commitment of 15 psi.

"We are incurring financial losses of Tk2 crore every day," he claimed, adding that, "We may have to sell our property to pay the workers' wages, as we have no other options."

He further said most factory owners could face severe difficulties in paying workers' wages as well as their utility bills for July and August.

Minhaz Hoque, managing director of Fatullah Dying and Calendaring Limited, a leading yarn and fabric dyeing and processing factory in Narayanganj, told TBS, "Previously, the government had provided us with some assurances. However, after missing several deadlines, they are no longer giving us any assurances."

"We are completely unaware of when the situation will improve," he added.

Abdullah Al Mamun, former president of the Narsingdi Chamber of Commerce and Industry, said, "Some workers at weaving mills in Narsingdi took to the Dhaka-Sylhet Highway today [yesterday], demanding an uninterrupted supply of gas and electricity, as their incomes have been cut off due to factory closures."

"However, they could not stay on the streets for long. They are paid on a production basis, so when production comes to a halt, their incomes also almost completely disappear," he told TBS.

But, Madhabdi Police Station OC Kamal Hossain denied that any such incident had taken place. Several attempts by TBS to reach Shibpur Police Station OC Md Kohinoor Mia were unsuccessful.

Bangladesh has been facing a severe nationwide gas crisis since 21 July, after a fire and technical failure at Excelerate Energy's floating storage and regasification unit (FSRU) off Moheshkhali halted operations and sharply reduced daily gas supplies to the national grid.