Ceramics sector, which is a highly value added industry for export and sells at reasonable costs in domestic market is facing hurdles due to energy shortage and problem in opening L/Cs slowing down production.
Currently 80 per cent of local demands are met by locally manufactured ceramic products as import substitute while it is earning huge foreign currencies by exports.
But at present the sector is facing a set back as manufacturers are not getting adequate power or gas supply in factories, besides facing problems in opening letters of credit (L/Cs) for importing raw materials.
Nazmul Karim, Managing Director, Bridge Chemie viewed this while talking with the Daily Observer recently on overall condition in this sector.
He said gas pressure in some areas is absent for 5 to 10 hours a day putting production machineries to lie idle. As a result it is severely hampering production for local and export markets.
Despite export orders received from foreign countries many factories are not in a position to produce enough and this is hampering exports, the Bridge Chemie key executive said.
He said banks are not willing to help us in opening letters of credits. Though request at several times it is facilitating only in small scale, not adequate to meet business demand. Productions dropped to 50 per cent and profits are also declining. If this situation persists in next couple of months there will be a severe trouble in the ceramics sector, he said.
After the Covid -19 pandemic as the market started becoming normal, global market facing is facing setback from another problem-the Ukraine-Russia war. The current situation may force many to close business, Karim feared.
He said last month there was no gas supply for 12 hours a day at factories located in Gazipur area. Few months back low gas pressure or no gas impacted factories for about six hours but it was possible to manage production narrowly. Now gas supply is missing for 12 hours a day and this is totally unmanageable, he said.
He said there are around 70 establishments in ceramic sector and most of them are around the capital and Savar, Gazipur, Keraniganj and Narayanganj. Factories located in these areas are producing ceramic products as well as tiles and sanitary products. Around 20 factories are produce utensils, 32 tiles and 18 are producing sanitary products.
They produce state of the art products as import substitute to local market and earn foreign currency from exports, Nazmul Karim said.
Currently, Bangladesh ceramics products are exported to more than 50 countries, he said and emphasized the need for protecting this sector by ensuring uninterrupted gas supply and other policy support including unhinged opening of letters of credits.
He said his company is participating in the upcoming ‘Ceramic Expo’ scheduled to open in the city on November 24.
Source: https://www.observerbd.com/news.php?id=394095
