Primary textile millers yesterday urged the government not to hike the gas price afresh as it will erode their competitiveness.

Titas Gas Transmission and Distribution Company proposed Bangladesh Energy Regulatory Commission hike the gas price by 130 percent to Tk 19.26 per cubic metre from Tk 8.36.

“We will lose the competitiveness and lose our markets as well, if the gas price is hiked again within the gap of one year,” said Tapan Chowdhury, president of the Bangladesh Textile Mills Association.

The millers made the demand at an inter-ministerial meeting held at the textiles and jute ministry in Dhaka, chaired by Mirza Azam, state minister for textiles and jute.

The proposed 130 percent hike means a 460.77 percent real impact on the industry, as the government doubled the gas price last September to Tk 8.36 per cubic metre from Tk 4.18 per cubic metre, Chowdhury said.

“The garment sector will also face a negative impact if the price is hiked again. It will also face the problem of lead-time as the local apparel exporters will have to depend on imported yarns and fabrics.”

The sector has also been facing a downward price pressure of yarn and fabrics thanks to the cheaper raw materials from India and China, volatile cotton markets and the negative impact of the Gulshan terror attack on the garment sector.

Moreover, the Indian government recently announced a package worth $900 million for employment generation and promotion of export in the textile and apparel sector, according to Chowdhury.

The package, which has been launched to improve labour working conditions, gives a 25 percent investment subsidy and an income tax waiver to garment makers.

India has disbursed $3.5 billion in funds for factory upgrades between 2000 and 2014.

“The local spinners would not be able to supply yarn at lower prices for the Indian subsidies.”

As a result, the massive investment made in the sector over the years -- to the tune of nearly $5 billion -- will be in big trouble. One of the major difficulties is that the spinners and weavers cannot pass on additional prices to consumers as the value of products depends on foreign retailers, he added.

Captive power generators account for 17 percent of total gas consumption, according to data from Petrobangla, the national oil, gas and mineral exploration company.

Primary textiles account for 4 percent of the electricity generated by captive power plants.

Currently, 450 spinning mills can supply 90 percent of raw materials to the local consumers and 750 weaving mills can meet 45 percent of the demand of local users, he said.