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The Financial Express

Ceramic industry takes a hit from pandemic

Export drops 59.45pc in FY 20


| Updated: September 12, 2020 14:34:13


File photo used for representational purpose File photo used for representational purpose

The Covid-19 pandemic has dealt a severe blow to the country's ceramic goods manufacturing industry, which had been showing a remarkable prospect in the recent years.

The industry is now struggling to survive despite the resumption of economic activities lately, industry insiders have said.

Weak demand for all sorts of ceramic products in domestic and international markets, supply chain disruption, and persistent sluggishness in other associated sectors, particularly the real estate, are blamed for the situation.

Though the sales volume of ceramic products is gradually increasing, still it is well below the desired level, traders said.

Umar Faruk, manager of Classic Centre - a ceramic tableware distribution outlet in the city's Elephant Road area, said their sales volume is still very low compared to the pre-Covid period.

"Sales volume fell below half the usual level," Mr Faruk said, explaining that a large section of buyers are now spending less for non-essential items.

The Export Promotion Bureau (EPB) data revealed that Bangladesh's export earnings from all sorts of ceramic products shrank by 59.45 per cent to $ 27.97 million in the fiscal year (FY) 2019-20, from $ 68.97 million of the previous FY.

The sector registered a hefty growth of 32.79 per cent in FY 2018-19 from $ 51.94 million in FY 2017-18.

Because of the popularity of Bangladeshi ceramic items abroad, the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) had expected to earn $1.0 billion through export.

Bangladesh has become nearly self-reliant in producing ceramic products from an import-dependent nation just two decades ago.

Currently 68 ceramic producers are operating in the country; of which 20 manufacture tableware, 30 tiles, and 18 sanitaryware, according to data available with the BCMEA.

BCMEA General Secretary Irfan Uddin said easing the lockdown does not mean that all things have recuperated to their usual level.

"Demand for all categories of ceramic products has slogged significantly in the local market amid the pandemic. Export markets are also showing the same trend."

Bangladesh's ceramic goods export destinations include the UK, Germany, France, Italy, Sweden, Switzerland, Norway, the USA, Canada, Australia and Japan.

Most of these countries have been hit hard by the deadly coronavirus, and they are now fearing second and third waves of the pandemic in coming days, he added.

According to a report, prepared by the US-based firm Grand View Research a year ago, the size of global ceramics market is expected to reach US$ 407.72 billion by 2025 with a compound annual growth rate (CAGR) of 8.6 per cent from the existing level.

Such a potential global market along with the expanding domestic one encouraged several new ceramic producers to start operations in the country. Unfortunately, the move faced a setback due to the virus outbreak, sources said.

"Several new plants, which were in the pipeline to start operations this year, deferred their plan and will launch production next year," said Mr Irfan Uddin, also managing director of FARR Ceramics.

It became difficult for these units to import their machinery and factory construction materials as well as hire foreign experts in the wake of the pandemic, he explained.

However, the BCMEA leader has expressed his optimism that the local ceramic sector would make a comeback by the middle of 2021.

Insiders said the local ceramic sector had been facing several challenges, including lack of skilled manpower and hike in prices of gas, a vital resource for making ceramic products.

Drawing an investment worth nearly Tk 90 billion, the sector has so far generated employment for more than 0.5 million (5 lakh) people.

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