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Double Crisis Plagues Ceramic Sector

Industry: Building Material, Ceramic

The ceramic sector in Bangladesh is currently facing challenges due to a shortage of dollars and a gas crisis. Manufacturers of ceramic products are encountering difficulties in opening letters of credit (LC) for importing raw materials due to a scarcity of dollars and also experiencing disruptions in production due to the gas crisis, leading to increased production costs.

Approximately 90% of the raw materials for ceramic products in Bangladesh are imported, resulting in a 30-35% increase in production costs due to rising dollar and gas prices. According to the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), the ceramic product market in the country is valued at around BDT 7,248 crores. Domestic companies currently hold an 81% share of the market, with tiles accounting for BDT 5,219 crores. The gas crisis has affected factories such as Excellent Ceramics and Excellent Tiles, leading to production disruptions and reduced sales. Furthermore, the dollar shortage has resulted in a decline in raw material imports, causing shortages in some factories. The BCMEA has called for the withdrawal of additional duties on tile production and sanitary products to provide relief to entrepreneurs. Additionally, they propose a 35% deduction in imports due to moisture in mineral soil, which is wasted during the production process.

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