Monday, March 24, 2025
HomeEconomyFresh hike in gas price to deepen crisis of ceramic industry: BCMEA

Fresh hike in gas price to deepen crisis of ceramic industry: BCMEA

Local ceramic manufacturers have urged the government not to increase gas price at the moment, saying that they have already suffered production losses due to low gas pressure.

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,ā€ said Mainul Islam, acting president of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), at a press conference on Monday.

As a result, ceramic companies are suffering huge financial losses, he said, adding that the latest decision for raising industrial gas price will only deepen the crisis of the ceramic industry created by the prolonged gas supply problem.

He highlighted that due to low gas pressure, orders from international companies have been canceled as factories fail to deliver products on time.

ā€œMany 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,ā€ he noted in written statement.

Additionally, five newly established factories have not been able to start production due to insufficient gas supply, said the BCMEA leader.

Their demands also included keeping gas prices unchanged, ensuring a stable gas supply, and withdrawing the duty imposed on ceramic products.

Currently, over 80 ceramic factories have been set up in the country despite numerous challenges. Their production ranges from tableware, tiles, to various sanitary items.

Apart from a sizeable export income, the local ceramic industry also helps save $2 billion annually by reducing the import of finished goods, according to the BCMEA.  

During the last nine years, industrial gas prices have surged by approximately 345 percent. In 2023 alone, gas prices rose by about 150 percent, abruptly raising production costs, the leader of the trade body noted.

As a result, the cost of per kilogram ceramic goods production has risen by 18 to 20 percent, making it difficult for the local producers to compete with the imported products, they added.

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, were also present at the press conference.

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Similar News