Water getting scarce for Chattogram industries

Chattogram's manufacturers in Sitakunda are facing a severe water crisis due to erratic rainfall, a lack of groundwater, and rising temperatures. Industries are struggling to manage water resources to maintain uninterrupted production, which is increasing costs by 4–5%, ultimately impacting consumers.

This is how climate change is significantly affecting businesses and raising manufacturing costs in Bangladesh.

Sitakunda, one of Bangladesh's largest industrial belts, is home to around 400 heavy industries, including steel, cement, thread, glass, pharmaceuticals, LPG, oxygen generation plants, and jute production. The majority of these industries rely on groundwater and rainwater. However, excessive groundwater extraction has caused water levels to drop rapidly, with some areas failing to access water even after digging beyond 1,500 feet. According to the Public Health Engineering Department, at least 50,000 tube wells have dried up in Chattogram over the past 20 years, including 7,000 in Sitakunda alone. Some industries still extracting water from beyond 1,500 feet report that it is becoming unusable due to rising salinity levels.

Industries that have invested millions in rainwater harvesting are also struggling due to erratic rainfall patterns, with some months experiencing excessive rain while others remain dry. Many manufacturers are now forced to transport fresh water from the Feni River, located around 100 kilometres away. According to industry sources, the price of steel per tonne has risen by Tk3,000–4,000, while glass costs have increased by Tk4–5 per square foot.

"After investing millions of takas, we are now facing a severe water crisis due to climate change. The shifting climate is altering rainfall patterns. If we closely examine the rainfall data, we can see significant changes in intensity," said Mohammed Amir Hossain, managing director of PHP Float Glass Industry Limited (FGIL).

"Various manufacturers produce goods worth millions every day, and all are affected by this water shortage. If we have electricity and gas but no water, I fear the worst days for water scarcity are ahead of us. We must prioritise water management in the future, and I urge the authorities to take action," added Amir Hossain, who invested over Tk1.5 billion in a glass factory in 2004.

Experts warn that Chattogram is experiencing erratic rainfall and extreme weather events due to climate change. Md Zaheer Uddin Dewan, supervising engineer of the Department of Public Health Engineering, stated, "Climate change, the presence of arsenic and salinity in groundwater, and increased salinity in river water are contributing to the water crisis."

Rising costs and struggles

PHP FGIL requires 800 tonnes of water daily for cooling machinery and washing sand, a key raw material in glass production. When their tube wells dried up, the company drilled at least 20 more wells beyond 1,200–1,500 feet but failed to extract water.

With no other options, the company turned to rainwater collection, constructing a treatment facility and a 168-tonne reservoir at a cost of Tk10 crore in 2007. However, erratic rainfall in Sitakunda has led to further water shortages.

To meet its demand, PHP FGIL built a sand-washing plant on five acres of land in Feni district, about 100 kilometres away from the factory, spending an additional Tk10 crore on a water reservoir. Sand is now transported to Feni first for washing before being sent to the factory. However, due to the lack of water for cooling systems, the company is forced to purchase and transport water from Feni daily using water vouchers (trucks).

During the dry season, PHP FGIL spends around Tk1 crore per month on transporting water. This crisis has increased production costs by Tk4–5 per square foot of glass, which now sells for around Tk 100 in the retail market.

PHP FGIL is not alone in facing this crisis. Other manufacturers in Sitakunda, including KDS, BSRM, KSRM, Abul Khair, Mostafa Hakim, Sunman Group, SA Group, UniTex Group, TK Group, and Confidence Cement, are also struggling.

"If we washed sand here, I would not be able to run the factory due to the water shortage. Washing sand elsewhere and transporting it is not cost-effective and increases production costs. However, bringing water from over 100 kilometres away by vehicle is still cheaper than extracting groundwater from over 1,200 feet," said Amir Hossain.

Several steel industries in the Sitakunda region supply 60–70% of Bangladesh's total steel demand. BSRM, the country's largest steel manufacturer, has launched a Tk200 crore project to bring water from the Feni River, as groundwater and rainfall can no longer meet their needs.

Another leading steel manufacturer, GPH Ispat, which requires around six million litres of water daily, is facing the same crisis. All 15 of its deep tube wells have dried up. In 2019, the company built an illegal dam on a mountain stream to source water but was sued by the forest authority.

The water crisis has driven up production costs significantly, with steel costs increasing by Tk3000–4,000 per tonne and cement prices rising by Tk50–60 per kilogram.

The BSRM factory in Mirsarai requires several million litres of water per day. Tapan Sengupta, Deputy Managing Director of BSRM, told The Business Standard, "We are managing production by harvesting rainwater and sourcing water from the Feni River. We have an agreement with the Water Development Board to transport water through a pipeline."

"Lifting groundwater using tube wells is not environmentally sustainable in the long term. We plan to reduce our reliance on tube wells. Furthermore, groundwater salinity is increasing and will continue to rise. While we are highly efficient within the factory, external factors are beyond our control. My concern is why an industry should require such a large water treatment plant—it obviously raises costs, including operational and administrative expenses," said Aameir Alihussain, managing director of BSRM.

"We appreciate the government's attention to electricity and gas. However, water now requires the same level of priority. The authorities should consider it just as essential as electricity and gas," added Amir Hossain.

Future challenges

Bangladesh's largest economic zone, Bangabandhu Industrial City, is being developed on around 30,000 acres in Mirsarai. Expected to employ at least 1.5 million people, the industrial city will require approximately 500 million litres of water per day by 2031. 

Initially, authorities planned to source water from the Halda River via Chattogram WASA, but the river itself is facing a growing salinity crisis. Now, industries are relying on groundwater, which remains insufficient for their needs.

There are 1,250 small and medium-sized factories across 17 industrial zones in the Chattogram region. Significant investments have also been made by multinational companies. However, around 500 industries in the region are struggling with severe water shortages.

The role of climate change

According to data from the Bangladesh Meteorological Department (BMD) Sitakunda Centre, the average annual rainfall was 3,247mm in 2004 when PHP FGIL was founded, compared to 2,324mm in 2022.

Rainfall distribution has also changed drastically. In 2021, between June and October, 2,877mm of rainfall was recorded, whereas the remaining seven months saw only 143mm. Sitakunda experienced its highest recorded June rainfall of 1,072mm in 2021.

The number of rainless months is increasing. In 2021, there was no rainfall for four months (January–March and November), with only 3mm recorded in April—the lowest in 28 years.

Rising temperatures are further depleting groundwater sources. A World Bank study, Hotter and More Humid with Erratic Rainfall: Climate Change in Bangladesh, found that between 1980 and 2019, maximum temperatures in Dhaka increased by 0.5°C, while Chattogram saw an increase of 0.9°C.

Amir Hossain explained, "Earlier, our water crisis lasted from December to March—about four months. Now, the crisis stretches from October to June—around nine months. Without government intervention and cooperation, we will not be able to manage this crisis in the future."

Experts and industry leaders urge the government to explore solutions, including desalination and alternative water sources, to ensure sustainable industrial growth.