Muhammad Ayub Ali :
The ceramic industry, the country’s third largest export sector, is facing multiple challenges including the gas crisis and its price hike, Supplementary duty, and higher operational costs turning ceramics into a sick industry right now, industry insiders said.
The leaders of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) yesterday urged the interim government to take necessary steps to ensure uninterrupted gas supply in the Ceramic industry and withdraw supplementary duty (SD) on ceramics items to protect the industry.
However, the sector contributes around Tk 3,500 crore in annual revenue to the national treasury and saves nearly $2 billion each year through import substitution. More than 500,000 people are engaged directly and indirectly. But the industry is now facing a severe gas crisis, leading to daily losses exceeding Tk 20 crore,” BCMEA acting president Moynul Islam made the remarkets at a press conference at Dhaka Reporters’ Unity (DRU) in the capital.
A lot of companies have halted investments, and newly built factories remain non-operational due to the ongoing crisis. This not only discourages further sectoral investment but also prevents thousands of potential workers from securing jobs,” he claimed.
The BCMEA leader also added that a further increase in gas prices would be devastating. Over the past nine years (2015-2023), gas prices for industries have surged by 345 percent. In 2023 alone, the government raised prices by 150 percent, resulting in an 18-20 percent increase in production costs.
“If the proposed 152 percent hike is implemented, production expenses could rise by an additional 30-35 percent, affecting transportation and other associated costs. Industry insiders fear that such an increase will make local ceramic products uncompetitive in both domestic and international markets,” he said.
Energy expert Prof Ijaz Hossain told to The New Nation that countries’ banking and energy sectors are facing a difficult time right now. For the country’s industry, the government should make a clear plan.
All the ceramic manufacturers push to Bhola or another area where the gas is available he added.
SD is another challenge for the ceramic industry.
The BCMEA leaders also urged the government to remove the existing SD on locally manufactured ceramic tiles and sanitary ware.
“Currently, a 15 percent SD is imposed on ceramic tiles and a 10 percent duty on sanitary ware. These products are no longer considered luxury items; rather, they are essential components of modern construction and sanitation infrastructure. Increased prices would negatively impact not only the ceramic industry but also consumers, especially those relying on affordable housing and sanitation solutions,” Moynul claimed.
