The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Sunday urged the government to reconsider the prices of the rod, a key construction material, in various development projects.
Manwar Hossain, chairman of the FBCCI Standing Committee on Iron, Carbon Steel, Stainless Steel and Re-rolling Industries, made the call at the first meeting of the committee held at the FBCCI Board Room in Dhaka.
“The Public Works Department has fixed the price of per tonne rod at Tk 72,000, while per tonne scrap costs at least Tk 62,000. As the production cost is more than the fixed price, the government should reconsider the price,” he said.
The term loan should be given for at least 10 years and the defer payment for rod should be increased to 720 days from 360 days and for machines the period should be five years instead of three years, said Manwar, also the chairman of the Bangladesh Still Manufacturers Association.
The chairman of the Standing Committee also opposed any new investment in steel and cement sectors with bank loans as overcapacity has plagued the two sectors.
The committee’s Director-in-Charge Md Jamal Uddin said the construction sector has been contributing a lot to the nation's development though traders have been running their businesses with 25 to 30 per cent loss.
Meanwhile, many giant construction companies have shut their businesses due to the sky-high price of the rod.
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Bangladesh Association of Construction Industry (BACI) President Shafiqul Haque Talukder said the contractors have to implement the government projects at the prices fixed during the contract even if the prices of the raw materials are going up.
“In doing so, 25 per cent of the contractors have become bankrupt,” he claimed.
He, however, urged the introduction of a price adjustment clause in the development projects.
Speaking as the chief guest, FBCCI President Md Jashim Uddin said although steel and construction are the strong sectors, they are facing many challenges.
He called upon the committee to identify the challenges and assured the traders of the apex trade body’s maximum cooperation.
