Gas supply crisis to slow investment in RMG

Abdul Hai Sarker, chief of BTMA

Investment in the garment sector, the motor of the country's export trade, will be held back by shortage of gas supply, textile mills association chief said yesterday.
President of Bangladesh Textile Mills Association (BTMA) Abdul Hai Sarker said Bangladesh is a lucrative place for investment, mainly due to the availability of gas and cheap workforce.
“Bangladesh has a huge potential for grabbing larger share in global apparel market, provided gas supply in industrial units remains unhindered,” he said.
Sarker was speaking at a press conference at the office of Bangladesh Textile Manufacturers' Association (BTMA) to provide updated information on the 4th biennial TEXBANGLA' 08.
In a meeting on April 9 Dr M Tamim, special assistant to the chief adviser for power, energy and mineral resources ministry, advised business entrepreneurs to make sure that there would be adequate gas supply before setting up a new industrial unit.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Anwar-Ul-Alam Chowdhury Parvez, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Fazlul Hoque, BTMA President Abdul Hai Sarker, and representatives from different trade bodies, among others, attended the meeting to resolve the gas issue.
Sarker said if the gas problem worsens further investments in the textile sector would be discouraged, as the sector is considered as one of the major industrial consumer of gas.
“If the government fails to ensure smooth supply of gas to the apparel manufacturing units, the sector may not be able to attain its export target,” Sarker said.
Bangladeshi apparel exporters set an export target for local RMG worth $11 billion in 2008, he said. “But, the attainment of this target depends on the pressure of gas at the industry level,” he added.
The total investment in the country's Primary Textile Sector (PTS) is $5.25 billion, while the number of textile factories is more than 4,000, he said.
Sarker said textile sector consumes 76 percent of gas consumed for industrial purposes.
Sarker said Chief Adviser Fakhruddin Ahmed is scheduled to inaugurate the three-day long TEXBANGLA' 08 at the city's Bangladesh-China Friendship Conference Centre (BCFCC) today. The exhibition will continue until April 18 to showcase the fabrics and yarn produced locally.
He said 46 stalls of 30 companies would showcase their products in the exhibition this year.
Some important seminars will be held on the sidelines of the exhibition, which is open to all, he said.