Bangladesh’s ceramics industry faces mounting pressure from gas shortages, high import duties, and foreign currency constraints.
- brg_news_room
- 11 hours ago
- 1 min read
The Bangladesh ceramics industry is facing significant operational and financial pressures, with unreliable gas supply, high import duties, and persistent foreign currency shortages disrupting production and increasing manufacturers’ operating costs. According to Sifat Arman, Deputy Managing Director of BHL Group, the inconsistent supply of natural gas has become the industry’s most pressing challenge, with many manufacturers reportedly operating at below 40% of their production capacity. Some factories have also been forced to temporarily suspend operations, particularly in recent months, due to inadequate gas availability.
The prolonged production constraints are negatively affecting manufacturers’ cash flows and financial sustainability, making it increasingly difficult for companies to meet bank loan repayments. The situation could worsen if gas shortages persist alongside elevated interest rates, potentially increasing loan defaults and putting financially weaker manufacturers at risk of further production cuts or factory closures.
Industry representatives have therefore called for urgent government intervention to ensure a stable and reliable gas supply, alongside measures to ease the broader cost pressures affecting manufacturers. Addressing these constraints is considered important to protect the financial stability of the domestic ceramics industry and prevent a wider deterioration similar to challenges experienced by other manufacturing sectors in Bangladesh.
Source: BHL
