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Bogra foundries face closure on price hike of raw materials

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Bogra (Bangladesh): Iron foundries in Bogra district face closure in the wake of price hike of raw materials, industry people have said.

They also said high import duties on raw materials are holding back the prospects of the industry in Bogra, the home to some 35 small iron foundries.

Ainul Haque Sohel, president of Foundry Owners Association of Bangladesh, said high prices of pig iron and hard coke, which is burned as a fuel in foundries, are

taking a heavy toll on the labour-intensive industry.

Abdul Malek, proprietor of Al Modina Foundry, said price of 9 metric tons of pig iron was Tk 1 lakh in 2002 whereas the price now stands at Tk 4.5 lakh.

In 2002, the price of 10 metric tons of hard coke was Tk 1 lakh, while it is now Tk 6 lakh, Malek added.

The annual business volume of Bogra-based foundries is around Tk 300 crore, the industry insiders said.

The association leaders said 29-35 percent import duties on pig iron and hard coke are barriers to the growth of the industry. Local industry cannot compete with

imported products from China and India because of the high import duties on the raw materials, they added.

The association president said local iron-based foundries make agriculture equipment such as hand tubewell, centrifugal pump and piston.

The association leaders also said local industry meets 85 percent of the country's total requirements.

They said the price of an imported 4-inch centrifugal pump is about Tk 4,000 but the locally made pump costs Tk 1,500.

The association said the industry needs government support for its growth. The association demands introduction of soft loans for entrepreneurs and withdrawal of import duties on raw materials.

The association also seeks establishment of a testing laboratory in Bogra to check quality of locally made products.

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