The country鈥檚 ceramic manufacturers urged the government not to increase the price of gas and demanded that necessary steps be taken to ensure uninterrupted gas supply to the ceramic industry.
Moreover, they also asked to withdraw the supplementary duty imposed on ceramic tiles and sanitary products entirely.
They made these demands in a press conference organised by the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) on Monday in the capital鈥檚 Dhaka Reporters鈥� Unity (DRU) conference hall.
In his written speech, Moynul Islam, president (acting) of the BCMEA, said that the ceramics industry relies on gas as a raw material. The factory needs an uninterrupted gas supply at a certain pressure for 24 hours to manufacture ceramic products.
If the gas supply is short or interrupted, all the products in the production process immediately get spoiled, he said.
鈥業n the past years, renowned companies in the global market have canceled orders from us due to the lack of required gas pressure, and we were unable to deliver products in time,鈥� he added.
He also said that in the past year, 22 to 25 factories of ceramic products 鈥� tiles, sanitary ware, and ceramic brick 鈥� in major industrial hubs like Dhaka, Narayanganj, Gazipur, Narsingdi, and Mymensingh districts faced severe gas shortages.
In the ceramic factories, 15 PSI of gas pressure is required to run production activity. Still, the gas pressure fluctuates from 2鈥�3 PSI to zero, resulting in a total production loss of more than Tk聽20 crore per day, he said.
The BCMEA leader said that more than 50 registered ceramic companies have suspended their reinvestments due to the gas crisis alone, where five newly established factories cannot start production.
鈥楧uring the previous government rule, the gas price was increased three times in one step with the promise of uninterrupted supply. However, despite the increase in price, the gas supply problem has not been fixed yet,鈥� he added.
He also said that in the past nine years, gas prices in the industrial sector have hiked by about 345 per cent.
In 2023 alone, gas prices in the industrial sector increased by about 150 per cent, and as a result, the average production cost per kilogram of ceramic products has hiked by 18鈥�20 per cent.
However, despite gas prices hike, the prices of products have not been increased in line with the hike. In such a situation, the government has planned to hike gas prices by an average 152 per cent.
鈥業f they really do this, the production cost will increase by another 30鈥�35 per cent,鈥� he added saying that and several manufacturers are now planning to pull out of the sector.
Other BCMEA leaders urged the government to remove the existing supplementary duty on locally manufactured ceramic tiles and sanitary ware.
At the press conference, BCMEA adviser Mir Nasir Hossain said that currently, there is 15 per cent supplementary duty at the production level on all domestic tiles and 10 per cent at the production level on sanitary products.
He added that ceramic tiles and sanitary products are no longer luxury items and demand the complete withdrawal of the existing supplementary duty.
He also said that the cost of doing business has increased significantly, and if the costs are not reduced, the industrial sector will lag behind in competition.
According to the BCMEA, the sector contributes around Tk聽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 in the sector.