Bangladesh’s home textile makers have insisted that the government subsidise 50 per cent of the additional production cost of the country’s terry towels and other home textile products after a fuel hike would likely raise the monthly production cost of the goods up to 6 per cent. The additional expenses to the textiles’ production cost due to the fuel price hike will be around $7-$8 million.
The BTTLMEA members' average exports on a monthly basis are valued at $175 million, of which 90 per cent is their production cost, Bangladeshi media reports said quoting M Shahadat Hossain, chairman of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA).
The BTTLMEA head also demanded that the government extend its support without any delay to the export-oriented readymade garment and textile sector to avoid any further negative impact in the wake of the coronavirus pandemic.
The Bangladesh government had revised the prices of all fuels last week, as per Bangladeshi media reports. While the prices of diesel and kerosene were hiked by 42.5 per cent to Tk 114 a litre from Tk 80, the price of petrol was increased by 51.16 per cent to Tk 130 a litre from Tk 86. Moreover, octane’s price was raised by 51.68 per cent to Tk 135 a litre from Tk 89.