Stabilise gas price and supply, cut duties: Ceramic makers urge govt to save industry

Ceramic manufacturers have urged the government to halt gas price hikes, ensure a stable energy supply, and remove the supplementary duty on tiles and sanitary products to safeguard the domestic industry.  

"Gas prices for the ceramic industry have already increased by 345% over the past nine years, with a 150% hike in 2023 alone, raising production costs by 18-20%," said Mainul Islam, president of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), today (4 February).  

Reading out a written statement at a press conference at Dhaka Reporters Unity in the capital, he warned that the proposed 152% price hike would drive up costs by another 30-35%, making it difficult for manufacturers to compete with imports.  

BCMEA Adviser Mir Nasir Hossain, Senior Vice President Md Mamunur Rashid, Vice President Abdul Hakim Sumon, Director Rashid Maimunul Islam, Director Farian Yusuf, and General Secretary Irfan Uddin were also present at the press conference.  

Mainul said the ceramic industry, comprising over 80 factories, plays a crucial role in reducing import dependence and saving at least $2 billion in foreign currency annually.  

However, he noted that irregular gas supply and low pressure have led to significant production losses, forcing around 50 registered ceramic companies to halt investments. Additionally, five new factories have been unable to commence production.  

The situation has resulted in order cancellations from international clients, negatively affecting growth and employment. The BCMEA urged the government to prioritise the ceramic industry by ensuring a stable gas supply.  

If new tariffs are implemented, the increase could lead to factory closures, reduced investments, and a shift towards plastic and melamine alternatives, harming both the environment and the reputation of Bangladeshi ceramic products in global markets.  

The BCMEA urged the removal of the 15% supplementary duty on ceramic tiles and 10% on sanitary ware, emphasising that these are essential materials, not luxury items. 

It called on the chief adviser to support the sector's sustainability by stabilising gas prices, ensuring an uninterrupted supply, and eliminating these duties to boost investment and jobs.  

The BCMEA president highlighted the industry's impact, citing Tk18,000 crore in investment, Tk500 crore in annual exports, and Tk8,000 crore in domestic sales. 

Local production meets 85% of demand, generating Tk3,500 crore in revenue and Tk1,200 crore in gas payments. Over the past decade, the industry has grown by 150%, employing 5 lakh people with 60% value addition.  

The association urged the media to amplify their concerns and support measures to protect the sector.  

Mir Nasir Hossain, managing director of Mir Ceramics Limited, emphasised the need to keep gas prices reasonable for industrial survival.  

He warned that the gas crisis has forced companies to operate with fewer connections, while restarting machines consumes gas equivalent to a week's operation. Financial constraints, including bank loans, prevent full shutdowns.  

He also stressed the importance of political stability for economic growth, cautioning that persistent demands are unsustainable. Addressing economic concerns, he pointed to data manipulation under the previous government, which inflated economic figures and hurt export competitiveness.  

At a press conference, industry leaders urged the government to maintain gas pressure at 15 PSA, as factories currently receive only 10 PSA, hampering production.  

As a result, factories are running at just 60% capacity. Additionally, low gas pressure still registers full consumption on meters, further increasing industrial costs.