Textile millers yesterday urged the interim government to reduce gas prices to less than Tk 20 per unit from the current rate of Tk 31 per unit and to bar yarn imports through land ports, reasoning that it was essential to safeguard the sector.

They said they have been operating at half their capacity due to inadequate gas pressure in the supply lines, and were finding it difficult to compete with cheap yarn imported from India.

The requests came at a press conference organised by Bangladesh Textile Mills Association (BTMA) at Gulshan Club in Dhaka.

The millers warned that if the requests were not met, they might have no option but to ask Bangladesh Energy Regulatory Commission (BERC) to run their factories.

BTMA President Showkat Aziz Russell said the capacities of textile mills remain underutilised despite the fact that garment export orders were increasing.

Usually, when there is an increase in garment work orders from international clothing retailers and brands, the demand for home-spun yarn and fabrics also increases, he said.

However, although the work orders are increasing gradually, sales of yarn have not been increasing this time around, he said.

This is because local garment exporters prefer to import Indian yarn, which costs 25 to 30 cents less per kilogramme than Bangladeshi yarn because of incentives the Indian government provides to spinners.

Russell alleged that Indian millers were effectively "dumping yarn" in Bangladesh.

"We are losing value addition and employment in our country. We have already urged the government to stop yarn imports through land ports and keep allowing it through seaports," he said.

"We want to continue trade with India, but not the smuggling in of yarn," he said.

Although local production units are able to utilise 50 percent to 60 percent of their capacity, yarn worth around Tk 10,000 crore remains unsold as of yesterday due to low demand owing to the availability of the cheaper Indian substitute.

BTMA Vice President Md Saleudh Zaman Khan said gas prices should be reduced to less than Tk 20 per unit from the current rate of Tk 32 per unit so that production units can run smoothly and offer competitive prices.

He added that textile millers were being discriminated against as they did not get subsidies at levels provided to many other sectors.

He said the government provides gas to CNG refuelling stations, power plants and tea estates at low prices but maintains high prices in the textile sector.

Khan also explained why yarn imports through the four land ports—namely Benapole, Bhomra, Sona Masjid and Banglabandha—should be stopped, saying they were ill-equipped in terms of testing and necessary infrastructure.

However, he also opined that yarn imports over the sea should continue.

BTMA Director Razeev Haider requested that the government go for gas exploration as soon as possible, since the energy sector was becoming increasingly reliant on imported liquefied natural gas (LNG).

There is no reason to import and sell LNG at Tk 75 per unit while leaving natural gas resources unexplored, he said, adding that industries would not be able to sustain themselves on imported LNG.

Md Abul Kalam, a BTMA vice-president, also spoke at the event.