Bangladesh Steel Manufacturers Association (BSMA) urged the government for reduction of all existing duties and taxes on scrap and sponge iron imports for local manufacturers.

The demand came in a meeting of  BSMA and Bangladesh Association of Construction Industry (BACI) held aT FBCCI office.

The meeting was apprised that in addition to the  hike in the prices of scrap and chemicals, the main raw materials of steel, container and ship fares also increased in the last two years.

As a result, the production cost of rod has also gone up, having adverse impact on the country's construction sector.

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Due to the increase in expenditure, the country's construction companies are struggling to implement development projects within the estimated budget.

BSMA leaders informed, the price of rod produced in the country has logically increased due to increase in the price of raw material in the world market.

At present, scrap costs 79 percent additional expense, resulting in overall production costs increased by 52 percent.

In contrast, the selling price has increased by only 37 percent.

According to the producers, the rod has to be sold at a loss in most cases as the selling price has not increased as compared to the increase in the price of raw material in the world market.

Currently, the selling price of per metric ton rod is Tk 78,000 while the same in West Bengal, India, costs Tk 86,000, the BSMA leaders added.

At the meeting, the steel producers said that if the construction companies were allowed to import rods, the domestic industry would suffer and a large number of people would lose their jobs. In such a situation,

At the meeting, BACI leaders said that the government procurement rules-PPR and circular issued by the CPTU allow price adjustment in government projects.

But most of the government-funded projects did not include price adjustment clauses in their contracts.

As construction materials become more expensive, contractors are losing out.

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The Bangladesh Association of Construction Industries (BACI) has called for price escalation of government projects considering the rise in prices of raw materials.

Chairing the meeting, the FBCCI President Md. Jashim Uddin called for resolving the problems in the construction sector through mutual cooperation and dialogue.

Responding to his call, the meeting decided that the entrepreneurs of the two sectors would sit in discussion every three months.

Mir Nasir Hossain, former president of FBCCI, joined the meeting virtually.

FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, Director Engr. Ghulam Mohammed Alomgir, Secretary General Mohammad Mahfuzul Hoque, BSMA President Manwar Hossain and BACI President Shafiqul Haque Talukder were present in the meeting.