Home / Knowledge / News / Textiles / Bangladesh spinners wary of another gas price hike
Bangladesh spinners wary of another gas price hike
30
Apr '16
Bangladeshi cotton spinners have expressed concern that they may lose their competitive edge if the government carries out a over a proposed gas price hike for captive power plants.

“The spinning sub-sector will be in trouble if the government increases the gas price again. Bangladeshi spinners will face pressures as international yarn producers will then supply products to the local industry at lower prices,” Tapan Chowdhury, President of Bangladesh Textile Mills Association (BTMA) said at a après conference during the World Cotton Outlook Summit in Dhaka this week.

The government has proposed to increase gas price by about 130 per cent to Tk 19.22 per cubic metre for captive power plants from the current price of Tk 8.36.

Gas price was last increased in September 2015 when the government raised it to Tk 8.36 per cubic metre from Tk 4.36. At that time, the profit margin from the sale of yarn declined to below $1 per kg, according to industry insiders.

For sustainability in yarn trade, a mill requires a profit margin of at least $1. But, it has now dropped to below 60 cents.

Local spinners can currently meet 90 per cent of the demand for raw materials of the knitwear sub-sector and 40 per cent of the woven sub-sector. The rest is met through imports, mainly from China and India.

Chowdhury said if the gas price is hiked, spinners will not be able to supply the raw materials to the knitters and garment makers at competitive prices. That would force local garment makers would depend on imported yarn.

The demand for local yarn is higher due to a shorter lead time and better quality, he said.

Currently, more than 400 mills have a spinning capacity of 10 million bales of cotton (one bale is equal to 218 kg). But they cannot use their full capacity due to higher power prices, and inadequate power and gas supply to production units.

Bangladesh currently imports 6.1 million bales of cotton a year, most of it from India. Local growers can supply only one lakh bales. Chowdhury said. Cotton imports from India increased 36 percent year-on-year to 2.99 million bales in 2015. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search