Ceramic factories in underdeveloped regions of northern Bangladesh are facing significant challenges as a result of the US dollar crisis and the absence of natural gas. The ongoing dollar crisis has led to a 40 to 50 percent increase in production costs for ceramic makers, as the required raw materials are not being imported due to difficulties in opening letters of credit.
Additionally, the unavailability of natural gas forces local entrepreneurs to adopt expensive alternatives such as burning coal and waste tires to sustain their operations. The lack of natural gas also affects the steady heat required for the melting process in ceramics production. Furthermore, the high US dollar price and increased customs assessment values have caused imported raw material prices to rise by 34 to 37 percent. These challenges have resulted in a production decline of 40 to 50 percent for ceramic factories. The Bangladesh Ceramic Manufacturers and Exporter Association (BCMEA) has been advocating for tax exemptions and addressing other issues to support the industry’s growth.
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