The economic crisis in Europe and energy constraints at home have taken a toll on Bangladesh's ceramic exports.
Data shows the export growth of ceramic products slipped to 11 percent in fiscal 2010-11, down from more than 13 percent in 2009-10, 15 percent in 2008-09 and around 18 percent in 2007-08.
“Recession in the western countries, which are the main destinations of our products, has slowed exports,” said Iftakher Uddin Farhad, president of Bangladesh Ceramic Ware Manufacturers' Association.
Under-capacity production at different factories due to a gas crisis is another major reason Farhad identified for a slowdown in the export growth.
Bangladesh exported ceramics worth Tk 303.60 crore in fiscal 2010-11, Tk 273 crore in 2009-10, Tk 235 crore in 2008-09, Tk 270 crore in 2007-08 and Tk 219 crore in 2006-07, according to data from the association.
Ceramics and tiles are an emerging industry in Bangladesh. More than Tk 3,000 crore has so far been invested in the sector from home and abroad.
The local market size of the product was at around Tk 1,500 crore in 2010, according to market players.
Presently, around 40 ceramic factories are manufacturing porcelain wares, tiles, tablewares and sanitary wares.
Leaving aside expansion, nearly 10 new factories have appeared in the scene in the past few years and a few are in the pipeline but cannot go for production for a want of gas connection.
Traditionally, Japan, the UK, Germany and other European countries dominate exports of ceramic products to the world markets. But a jump in production costs, including wages and currency appreciation, made ceramics manufacturing unfeasible for many of those nations, even China. These countries have become ceramics importing nations.
India, Turkey and some South American countries are also importing ceramics from Bangladesh.
“There are some problems in export markets, especially in Europe and the USA,” said Rizvi-ul Kabir, chief operating officer of Shinepukur Ceramics, the market leader in export.
“But you have to have strategy to find out new markets,” he pointed out.
He cited an example of Italy and Spain, which were the biggest export destinations for Bangladesh's ceramics a few years ago.
“Now those markets are badly affected by the economic crisis. In the past, we had 18 buyers in Italy, but none at present,” said Kabir.
On the other hand, Turkey has become a big market now, he added.
However, Kabir said Shinepukur has good growth and orders at hand.
Low pressure of gas, a key ingredient for ceramic production, is hampering output at some factories, said Mazharul Quader, chairman of X Ceramics, which exports to northeastern states of India.
Quader said his factory has now given more emphasis on domestic market than exports.
“Every crisis has an opportunity,” explained Farhad who is continuously looking for new export markets, especially after the recession that affected major markets.
After Brazil, India and Russia, he is now exporting to Bhutan.
“I've recently got an order to supply ceramic tableware to a royal wedding in Bhutan,” said Farhad.
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