DBL Group, a prominent textile and apparel exporter, is grappling with increased monthly gas bills, which have tripled from Tk 25 crore to Tk 75 crore due to recent energy price hikes. Despite the government’s justification that liquefied natural gas (LNG) imports would boost gas pressure, factory owners claim they are yet to experience any benefits. The surge in gas expenses has raised DBL Group’s production costs by up to 30%, while buyers refuse to accept price increases amidst the global economic crisis.
The company is also confronting difficulties in opening letters of credit (LCs) due to the USD crisis, exacerbating the situation. Moreover, the reduction in the Export Development Fund (EDF) size and borrowing limits imposed by the central bank for the textile industry have further added to the manufacturer’s woes. The industry as a whole is struggling with low gas pressure, high energy prices, and a shortage of USD, resulting in reduced production capacity and increased costs for textile factories. The ongoing crisis jeopardizes their financial stability and ability to survive.
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