Commodity suppliers warn of shortages amid gas crisis

The country’s leading commodity importers and processors have urged the government to ensure uninterrupted gas and electricity supply to their factories, warning that disruption could trigger serious supply-chain problems nationwide.

They made the call at a discussion on ensuring stable stocks, supply and prices of essential items held at the Federation of Bangladesh Chambers of Commerce and Industry’s (FBCCI) Motijheel office yesterday.

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The country has been grappling with gas and power shortages in recent months, disrupting production across industries. The average daily gas supply fell to 2,235 million cubic feet per day in August, the lowest level recorded for the month in a decade, according to an analysis of gas-supply data from 2017 to 2026 by The Daily Star.

Shafiul Athar Taslim, director for finance and operation at TK Group, said one of the group’s two factories had been closed for two months because of the gas crisis and that this would ultimately have an impact on production.

Shafiul Athar Taslim, director for finance and operation at TK Group, said one of the group’s two factories had been closed for two months because of the gas crisis

In terms of gas allocation, he called on the government to ensure utility supplies for companies producing essential commodities just as it prioritises electricity and fertiliser production.

Otherwise, he warned supply problems could emerge during Ramadan, which is expected to begin in early February 2027.

Biswajit Saha, director of corporate and regulatory affairs at City Group, called on authorities to closely monitor the opening of Letters of Credit (LCs) for essential commodities such as sugar, wheat and lentils.

Stating that LCs are not being opened and the volume of LCs has declined, he said it was important to identify the factors behind the reduction.

With Ramadan approaching, he warned that if LCs are not opened by October or November, it may not be possible to import the required commodities within the necessary timeframe.

Biswajit also highlighted the impact of power and gas shortages on industrial production, saying many City Group industries are currently closed because of inadequate gas supply.

The gas shortage is also affecting mills that produce and supply essential commodities such as edible oil and sugar, said the City Group official, adding that this could affect the country’s ability to maintain the supply of these products.

Shafiur Rahman, adviser at Meghna Group of Industries, spoke about the recent rise in retail sugar prices by Tk 10-15 per kg.

He said around 99 percent of Bangladesh’s sugar consumption is dependent on imports, making domestic prices sensitive to developments in the global sugar market.

He also said international sugar prices have risen significantly, partly because higher crude oil prices can encourage reduced sugar output.

Golam Mawla, president of the Bangladesh Wholesale Edible Oil Traders Association, said the number of companies producing and supplying essential commodities has declined significantly over the years, from around 30-40 groups to only a few major players.

He urged the government to support these companies and address the gas, electricity, banking and regulatory problems affecting their operations.

He warned that if imports and production are disrupted and stocks fall, shortages will inevitably occur.

Keeping the upcoming Ramadan in mind, Mawla called on the government to engage directly with the major commodity companies, identify their problems, resolve gas and banking constraints, and ensure sufficient stocks in the market.

Addressing allegations that ‘syndicates’ and ‘middlemen’ are distorting the market, he said these terms should not be used as a substitute for addressing the “actual problems” in the supply chain.

Mohammad Ziaur Rahman, general manager for sales and marketing at Erfan Group, spoke about the recent price hike of aromatic rice, which is reportedly selling at up to 60 percent higher than a year ago.

Ziaur claimed that there has been a 20 percent decline in aromatic rice production compared with last year, largely due to adverse weather. Export was another factor behind the price rise.

Meanwhile, referring to the recent report of pay rise for government employees, FBCCI Administrator Md Fazlul Hoque called on essential commodities sellers not to hike prices unjustifiably.

A large portion of the population is engaged in the private sector and other professions, he noted. “Increasing the prices of essential goods such as rice, lentils, and cooking oil whenever salaries increase is by no means acceptable.”

He also said it is the social and moral responsibility of the business community to conduct business responsibly, keeping the interests of ordinary people in mind, and to play an active role in preventing unjustified price hikes.