Tiles get costlier as production, import costs up

The production and import costs of tiles have all the way gone up that have translated into an increase in their prices in the domestic markets.

The price of both foreign and locally produced tiles has shot up by Tk 5 to Tk 10 per square feet in the city markets over a month.

According to the traders, increase in various costs, relating to production, carriage and import, have led to the rise in price.

“Its price will further hike in domestic market if the government increases fuel gas price,” they dropped a hint.

Earlier, six gas distribution companies applied to the government seeking a 117 per cent hike of fuel price for industrial units and 116 per cent for households at the retail level.

A visit to several markets showed that local tiles used in building floor sell at Tk 50 to Tk 190 per square feet and Tk 30-to Tk 160 for wall carpeting while foreign tiles are priced at between Tk 160 to Tk 790.

Traders say there are nearly 30 local tiles manufacturing companies including RAK, Akij, DBL, Mir, BCL, Celtech, CBC, Fu Wang, Euro, Sanita and Fresh, etc. Now attractive designs and affordable price draw customers to purchase the local items.

Year Hossain Bhuiyan, proprietor of M/S Bismillah Tiles and Sanitary, said he sells CBC tiles (floor item) at Tk 52 to Tk 70 per square feet and wall item Tk 31 Tk 45 while fresh floor tiles are sold at Tk 55 to Tk 80.

“Actually the price hinges on brand value and quality as well as size. Now the price of local product has increased by Tk 5 and that of foreign products by Tk 10,” he pointed out.

The businessman argued that tiles generally are used in beautifying building floors, interior and exterior walls and pavements.

The use of the rectangular slab has increased a lot because of remarkable growth in housing, real estate and government-sponsored projects in Bangladesh for the last several years.

Jahid Hossain, proprietor, Taqwa Ceramic at Bangla Motor, told The Business Post they import different types of tiles from China, and the prices are recently up by Tk 5 to Tk 10 per square feet due to hike in shipping cost.

“Now I am selling wall tiles at Tk 160 to Tk 220 and floor tiles at Tk 140 to Tk 300,” he gave an estimate.

There is a good demand for foreign tiles, particularly among the affluent section of the society as the quality of local tiles lags far behind their foreign peers.

Talking to The Business Post, Assistant General Manager (commercial) of China-Bangla Ceramic Industries Ltd Shamim Ahmed explained that different raw materials and chemicals are imported to manufacture tiles.

“After building the body of a tile, 20-30 chemicals need to be used to make it shiny. As the price of almost all chemicals has risen in the international market, it has also hit our domestic market,” he viewed.

Different materials including white clay, talcum, silica sand, limestone, feldspar, pottery stone, Illite and kaolinitic clay, dolomite and calcite are used to manufacture ceramic tiles.

“We import raw materials particularly chemicals from Thailand, Malaysia and China. As overall costs are high, so are the product prices,” continued Shamim. Assistant Manager of Mir Ceramic Limited Abdullah Al Zaman vented his frustration over the lacklustre business for a long period of time in the wake of the pandemic.

“Now the situation is back to normal. The use of locally-produced tiles has led to declining import. However, tiles industry is growing at 5 to 10 per cent per year,” he narrated. Asked about the hike in tiles price, Bangladesh Tiles Dealer and Importers Association General Secretary MU Golam Rasul Belal said the price rose for various reasons.

“We have to pay 160 per cent tax and subsidiary duty. Besides, deferent costs including production and import are high recently. So, it is natural that it would leave an impact on the market.”

Some 70 per cent of foreign tiles come from China, 20 per cent from India and the rest from other countries.

According to Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), there are around Tk 13,500 crore local and foreign investments in tiles, tableware and sanitary segment in Bangladesh.

The latest data shows that local companies meet 80 per cent of domestic demand, and tiles market is worth around Tk 6,000 crore. Over five lakh people are directly and indirectly engaged in the sector. BCMEA president Shirajul Islam Mollah stated that gas is one of the key components for ceramic tiles industry. The cost of the item increased by 10 to 12 per cent in 2019 after the gas price was raised about 38 per cent at the industry level.

“The production cost will go up nearly 20 per cent if the proposed gas price hike (on average 116 per cent) is implemented in the country,” he warned.

According to the business leader, there are 70 ceramic producers in Bangladesh. Of them, 20 manufacture tableware, 30 tiles and 18 sanitary wares.

If the government hikes gas prices, then a bad impact is very likely to befall the tiles industry, Shirajul made the forecast.