The country’s ceramic manufacturers on Monday urged the government not to increase the price of gas saying that over 50 companies have suspended reinvestments due to the gas crisis, while five newly established factories failed to start production.

They demanded necessary steps to ensure uninterrupted gas supply to the ceramic industry.

Ceramic manufacturers also urged the government to completely withdraw the supplementary duty on ceramic tiles and sanitary products.

These demands were made during a press conference organised by the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) at the Dhaka Reporters’ Unity (DRU) conference hall.

BCMEA president (acting) Moynul Islam explained that the ceramics industry depends on gas as a key raw material, requiring an uninterrupted gas supply at a specific pressure 24 hours a day to maintain production.

Interruptions or shortages in the gas supply can spoil all products in production.

He pointed out that renowned global companies have canceled orders in the past due to inconsistent gas pressure, which has delayed deliveries.

Last year, 22 to 25 ceramic factories in major industrial areas, including Dhaka, Narayanganj, Gazipur, Narsingdi, and Mymensingh, faced severe gas shortages.

Factories need a minimum gas pressure of 15 PSI, but pressure fluctuates from 2-3 PSI to zero, leading to production losses exceeding Tk 20 crore per day.

As a result, over 50 registered ceramic companies have halted their reinvestments, and five new factories have been unable to begin production.

Moynul also said that under the previous government, gas prices were raised three times with the promise of uninterrupted supply, but the issue remained unresolved.

Over the past nine years, industrial gas prices have surged by about 345 per cent, with a 150 per cent increase in 2023 alone, leading to an 18-20 per cent rise in the production cost of ceramic products.

Despite these hikes, product prices have not increased accordingly, and the government is now considering a further 152 per cent gas price increase.

‘If they go ahead with this, production costs will rise by another 30–35 per cent,’ he added, saying that several manufacturers were now considering withdrawing from the sector.

Other BCMEA leaders called on the government to remove the existing supplementary duty on locally manufactured ceramic tiles and sanitary ware.

BCMEA adviser Mir Nasir Hossain said that there was currently a 15 per cent supplementary duty on the production of all domestic tiles and a 10 per cent supplementary duty on sanitary products.

He said that ceramic tiles and sanitary products were no longer luxury items and called for the complete removal of the existing supplementary duty.

He also pointed out that the cost of doing business has increased significantly, and unless costs are reduced, the industrial sector will fall behind in terms of competition.

According to the BCMEA, the sector contributes around Tk 3,500 crore in annual revenue to the national treasury and saves nearly $2 billion each year through import substitution.

More than 500,000 people are directly and indirectly employed in the sector.