Ceramic industry fears 50pc export loss on gas crisis
M Abdur Rahim
Bangladesh's ceramic products, which have emerged as significant export items over the last few years on gas availability, now face 50 percent export loss this fiscal year due to gas crisis that started two months back.Inadequate gas supply to ceramic factories located in Dhamrai, Savar, Tongi and Gazipur in the last two weeks has resulted in almost zero production, industry people said. "The gas crisis started two months ago and it has become worst over the last 15 days. We cannot run kilns, which need to be functional in 24 hours. We fear losing export orders," Rashed Makshud Khan, managing director of Bengal Fine Ceramics Ltd, said. The country's ceramics industry that produces tableware, tiles and sanitary ware has been witnessing over six percent growth for the last five years due to gas availability, Khan said. "Gas price is increasing in the world market keeping pace with oil price. But gas price is static in Bangladesh which gives us advantage to expand export market," said Khan, a pioneer in the country's ceramic industry. The ceramic industry earned $28 million from exports last fiscal year and fixed a target to cross $100 million by 2008. "But the target is unlikely to be achieved unless government takes urgent steps to restore normal gas supply," the former president of Bangladesh Ceramicware Manufacturers' Association. About the inadequate gas supply, Aminur Rahman, director (operations) of Titas Gas Transmission and Distribution Ltd, said low production from Sangu and rising demand of fertiliser factories have resulted in scarcity in Savar and Gazipur areas. "But we hope we will be able to overcome the crisis in the middle of this month when Sangu will be fully functional and the crisis in Dhaka zone will end entirely when the laying of the Ashuganj-Monohardi bypass line will be complete by early next year," he said. Khan said average tariff for fertiliser factories is Tk 2/cubic metre, gas-based power plants Tk 3.5/cubic metre and ceramic factories Tk 5.13/cubic metre. "Although fertiliser and gas-based power plants pay lower tariff, they get uninterrupted supply. But export-oriented ceramic industry does not get uninterrupted gas supply," he said. There are over a dozen of ceramic plants in the country, which produce over 40,000 tonne ceramic products a year. Monno, Shinepukur, Bengal Fine, Standard and Peoples Ceramic and National are engaged in tableware. RAK, Fu Wang, China-Bangla, Mir are engaged in tiles and sanitary ware. The companies have so far invested over Tk 500 crore and more investments are in the offing, sources said.
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