After the July uprising, Bangladesh witnessed massive countrywide labor unrest in various sectors, especially apparel. Luckily, the ceramic industry, one of Bangladesh’s expanding manufacturing sectors, was not affected. However, the sector has been struggling with another issue: gas supply crisis. Nevertheless, the president of the Bangladesh Ceramics Manufacturers and Exporters Association (BCMEA), Mr. Moynul Islam, is positive about the ceramic industry, and he shared his reasons with the Industry Insider.
“The relationship between labor and factory owners is crucial in the ceramic industry,” said Mr. Moynul Islam, the BCMEA president, and vice-chairman of the Monno Ceramic Industries Ltd.
He remarked that it’s a pottery industry, and it is difficult to continue the factory if the labor-owner relationship is not good.
“It is mandatory to maintain a close relationship between them. Otherwise, you won’t get a good product at the end of the day. So, there has not been any labor unrest in recent times in this sector. I hope it will not happen at all.”
The sector caters to 90 percent of the local demand as the country experiences steady economic growth and urbanization and is progressing toward being the third-largest export sector in the coming years.
According to BCMEA, the local ceramics market was worth Tk 76.42 billion in the 2023-24 fiscal year, while the foreign currency earned through exports, Tk 5.92 billion, is equivalent to more than US$53.84 million.
The total investment, both local and foreign, worth Tk 184.26 billion is equivalent to more than US$ 1675.08 million, per BCMEA.
These manufacturers largely rely on gas-fired kilns, which offer precise temperature control, reduce energy consumption, and enhance product quality.
The ceramic industry started in 1958 and currently consists of around 74 industries producing traditional ceramics, such as tableware, tiles, sanitaryware, insulation, heavy clay, etc.
“However, this sector is still reeling from the crisis of uninterrupted gas supply. The past AL government intended to import gas from abroad instead of finding wells across the country. The responsible minister failed to do what was necessary,” said Mr. Moynul
According to Mr. Moynul, Bangladesh has enough gas. However, the responsible authorities focus mostly on imports. Only the Habiganj and Bhola districts’ factories are running well, as there is no gas crisis. But, other factories, including the surrounding ones of the Dhaka-Aricha Highway, are facing an acute gas crisis.
“We have already met with the new adviser regarding this, but there are also a few legal barriers. I hope this problem will be solved soon,” expressed Mr. Moynul.
The BCMEA President also revealed that overall production has reduced to 50 percent due to lower domestic demand amid the new situation after August 5. In addition, the global political and economic volatility have also contributed to the low demand.
The sector directly employs around 52,490 people and is estimated to employ over 500,000 people indirectly.
Regarding the export situation, he told Industry Insider that exporting tiles and sanitary products had already started.
“But it is not significant as the manufacturing companies need to meet local demands first.”
If the industry had failed to meet local demands, exporting would have cost a huge amount of foreign currency, which would have created pressure on the unstable forex reserves in this situation.
“Amid the global unrest, the price has also fallen due to lower global demand. I hope newly elected U.S. president Donald Trump will work to soothe the global tension,” said Moynul Islam.
About the yearly ceramics fair, Mr. Moynul said, “The BCMEA will not arrange any fair this year. We will arrange it next year.”