Local ceramic manufacturers on Monday urged the government not to raise gas price further, saying such a move would impact the industry badly.
Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) placed its demand at a press conference held at Dhaka Reporters Unity.
In a written speech, Shirajul Islam Mollah, president of the BCMEA, said gas is one of the key components for the ceramic industry.
Several gas distribution companies had recently placed a proposal that the Bangladesh Energy Regulatory Commission increase the price of piped gas, he said, adding that frequent increases in gas prices pose a serious obstacle to the sector.
As a fresh gas price hike will hamper production, Bangladeshi ceramics will lose price competitiveness in the global market, the BCMEA chief observed.
According to the BCMEA, the cost of ceramics per kg rose 10 to 12 per cent in 2019 after the gas price was raised about 38 per cent at the industry level.
The cost of production will jump 18 to 20 per cent more, if the proposed gas price hike (on an average 116 per cent) is implemented, the association leader mentioned.
The BCMEA warned that local ceramic products will fail to compete with imported ones on the domestic market following high production costs.
In these circumstances, the manufacturers made an appeal through the press conference to the prime minister to give a direction so that the gas price is not raised for the ceramic sector.
Presently, there are 70 ceramic producers in the country, 20 of which manufacture tableware, 30 tiles, and 18 sanitaryware, according to data available with the BCMEA.
Bangladesh exports ceramic products to foreign countries, including the UK, Germany, France, Italy, Sweden, Switzerland, Norway, the USA, Canada, Australia and Japan.
Currently, the ceramic industry has an investment of Tk 135 billion (local and foreign) in Bangladesh. Export earnings from this sector stands at about Tk 4.0 billion, while local sales are assessed at Tk 60 billion a year.
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