The ceramic industry in Bangladesh has suffered production losses and damage to raw materials due to persistent low gas pressure, a problem that has plagued the sector for a long time.
In such a situation, the government wants to increase gas prices in the industrial sector again; this will further put the industry in crisis, leaders of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) said.
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They made these remarks while speaking at a press conference held on Monday at the Dhaka Reporters Unity (DRU). The press conference highlighted demands such as keeping gas prices unchanged, ensuring a stable gas supply, and withdrawing the duty imposed on ceramic products.
Acting BCMEA President Mainul Islam read out a written statement at the event. Also present were BCMEA Advisor Mir Nasir Hossain, Senior Vice President Mamunur Rashid, Vice President Abdul Hakim Sumon, Directors Rashid Maimunul Islam and Farian Yusuf, and General Secretary Irfan Uddin, among others.
The BCMEA Acting President said, “Ceramics is a gas-dependent industry. If there is no uninterrupted supply of gas, all products in production are immediately spoiled. This issue has been affecting the industry for a long time.”
As a result, ceramic companies are suffering huge financial losses, he pointed out.
Due to low gas pressure, orders from international companies have been canceled as factories fail to deliver products on time. Many manufacturers are unable to operate even a single production line, let alone multiple ones, because of the gas crisis. More than 50 registered ceramic companies have suspended investments.
Additionally, five newly established factories have not been able to start production due to insufficient gas supply, said the BCMEA Acting President.
He further emphasized that despite various challenges, over 80 ceramic factories producing tableware, tiles, and sanitary ware have been established in the country due to the efforts of entrepreneurs.
“While valuable foreign exchange is earned through exports, the industry also saves approximately $2 billion annually by reducing the import of finished ceramic products,” he pointed out.
The BCMEA Acting President warned that the continuous increase in gas prices is a serious problem for this gas-dependent industry.
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- Over nine years (2015-2023), industrial gas prices have surged by approximately 345 percent.
- In 2023 alone, gas prices increased by about 150 percent, severely affecting production costs.
- The cost of ceramic production per kilogram has risen by 18 to 20 percent, making it difficult to compete with imported products.
“As gas prices rise, the cost of manufactured goods also increases. However, due to stiff competition with foreign products, domestic manufacturers cannot increase prices as needed, forcing them to absorb financial losses,” he explained.