Small wooden furniture businesses in Bangladesh are facing a deep financial crisis as the demand for their products has fallen drastically, according to market players.

Mohammad Al Amin Sheikh, a furniture trader in Dhaka's Mohammadpur, said people are giving more importance to buying daily necessities due to the high cost of living amid ongoing inflationary pressure.

Besides, rising production costs have led to increased prices for even cheap wooden furniture.

"If we compare the current situation with that of May last year, then it can be said I am struggling for survival. At present, I am managing the business with loans," he added.

The furniture industry is the country's second-largest job provider after garments, employing about 20 lakh people and contributing about 1.2 per cent of the gross domestic product.

If we compare the current situation with that of May last year, then it can be said I am struggling for survival.

— Mohammad Al Amin Sheikh A furniture trader of Mohammadpur

Echoing the same, Mohammad Yaqub, a furniture trader in the capital's Kalabagan, said he did not receive any new orders this past month.

Salim H Rahman, chairman of the Bangladesh Furniture Industries Owners Association, said small furniture businesses are facing numerous issues as the overall industry is in a bad state.

Regarding these complications, Rahman said the businesses are struggling for a lack of capital as banks refuse to provide loans considering their ability to return the funds.

Rahman, also managing director of Hatil Furniture, went on to say that most fixed-income people are only buying furniture when absolutely necessary as they are more focused on meeting basic needs.

More than 40,000 small and big companies are involved in the production and marketing of furniture, according to the Bangladesh Investment Development Authority.

And although there are more than 100 brands, including Hatil, Akhtar furnishers, Partex and Regal, about 65 per cent of the Tk 30,000 crore market is controlled by non-branded cottage, micro and small enterprises.

For example, wooden furniture such as chairs, bookshelves and other small items are available in the Kanchujuly and Academy Road areas of Mymensingh city as well as other places in the district.

However, these are mainly used by students and bachelors living in dormitories or other low-income groups for their cheap design.

Ramzan Ali, a furniture maker in the Kanchijhully area of Mymensingh city, said carpenters like him once enjoyed good business when the price of necessary materials, including wood, was less.

"Our sales did not go down even after plastic furniture hit the markets," he added.

Abdus Samad, a furniture maker in the city's Kathgola Bazar, said sales have fallen to such an extent that their families are now in a serious financial crisis.

Abdul Hakim, a coworker of Samad, said they are passing days in a fed or half-fed state because of the lack of loans with relaxed interest rates.

The business has been continuing in Mymensingh city since the Pakistan regime but the authorities did not make any arrangement for them to continue operations in a safe and sound manner, said Md Aslam Mia, a local furniture trader.

On various occasions, the carpenters had to pursue the assistance of Mymensingh City Corporation for allotting a piece of land on rent so that they could continue business with honour and dignity, he added.