The cement industry in Bangladesh is facing significant challenges due to rising production costs and a declining market, prompting manufacturers to seek policy support. A prolonged slowdown in the construction sector, sluggish implementation of government projects, and weaker residential construction have led to a notable drop in cement demand, according to a local media outlet.
Additionally, international raw material prices are rising, the Taka (local currency) is depreciating, and bank lending rates, electricity tariffs, and transportation costs have escalated, all of which are contributing to higher production costs.
According to the Bangladesh Cement Manufacturers Association (BCMA), although 76 per cent of manufacturing companies are registered, only 42 are operational, with the industry’s annual production capacity of around 58Mt far exceeding domestic demand of about 31Mta. Ten companies dominate the market, holding approximately 75 per cent of the market share.
BCMA President Mohammad Amirul Haque emphasised the urgent need for policy support as the industry grapples with increased costs and declining sales. The reliance on imported raw materials, combined with rising fuel prices and higher electricity tariffs, has compounded financial pressures on manufacturers.
Industry leaders are urging government action to revise tax structures and stimulate construction activity, warning that without intervention, the sector could face a deeper crisis despite significant production capacity and growth potential.
By Abdul Rab Siddiqi, Pakistan
