Irfan Uddin, general secretary of Bangladesh Ceramic Manufacturers and Exporters Association, expressed concerns about the upcoming financial year, citing increased production costs due to energy price hikes, a higher dollar rate, and import restrictions.

The business leader stated that the current high production costs and tariffs on energy, coupled with the impact of the dollar crisis on trade, have already made business challenging.

‘These factors have hindered the import of raw materials and subsequently decreased production in the sector,’ he added.

Irfan, who is also the director of FARR Ceramics Ltd, highlighted the adverse effects of the recent dollar crisis, including limited opening of letters of credit and difficulties in acquiring raw materials and machinery.

He said the crucial need for an uninterrupted supply of gas to sustain the industry and called upon the government to ensure a reliable and reasonably priced energy supply.

With a remarkable 200 per cent growth over the past decade, Bangladesh’s ceramic sector has shown promising potential.

However, Irfan stressed that the industry’s growth prospects are dependent on the government’s ability to secure an uninterrupted gas supply at reasonable prices.

The production-based nature of the sector meant that without power and energy, production would come to a halt, severely impacting business, emphasised the BCMEA secretary general.

‘We are relying on the government to present viable solutions to the energy crisis, and we have faith that our government will not disappoint us,’ Irfan stated.

He pointed out that the government’s imposition of a 15 per cent supplementary duty on ceramic and tile production levels was negatively affecting the sector’s competitiveness.

According to Irfan, the sector could flourish if the government had withdrawn this supplementary duty, thereby enabling its growth.

Irfan further urged the government to consider the wastage percentage quantity during duty assessment on imported raw materials such as China Clay and Ball Clay.

Such considerations would help reduce the production costs of the ceramic sector.

He also highlighted the significant shift in Bangladesh’s ceramic product demand, stating that the country used to import 70 per cent of its total demand before 2000.

However, domestic industries now met over 90 per cent of the demand, reflecting their increased capacity and contribution, he said.

Presently, the ceramic industry in Bangladesh encompasses 70 operational industries, directly and indirectly employing around 540,000 individuals.

These industries generate an annual turnover exceeding Tk 8,000 crore from the local market and Tk 500 crore from overseas.