Government should save the aluminium sector

FE Team | Published: September 11, 2018 20:36:30

The aluminium sector in Bangladesh has gone through many ups and downs. During the colonial rule in India, there was no aluminium factory in East Bengal. Under British ownership, 'Crown Aluminium Factory' of Kolkata was the only aluminium utensil maker that catered to East and West Bengal markets. Actually, the Bengalis learned the skill of using aluminium to make utensils from the British. Prior to British rule, the Bengalis were dependent on kitchenware and utensils made from clay.
Around the early 1940s, Marwari entrepreneur Dhanu Agarwal set up 'Hardeo Glass, Aluminium and Silica Works' in Tikatuli of Dhaka. That was the foundation of aluminium industry in latter Bangladesh. However, the managers and workers in Dhanu's organisation came from Chennai and Kolkata.
After the formation of Pakistan, non-Bengalis opened numerous aluminium utensil factories in East Pakistan. Around 1955, few aluminium factories were set up by the Bengalis. Over the next few years, businesses in the sector owned by the Bengalis included Haque Aluminium, Doulatganj Aluminium, Bhuiyan Aluminium Works Limited of Chottogram and Dhaka Aluminium, Habeeb Aluminium and more in Dhaka.
Following the liberation of Bangladesh, in 1972, the government took a large number of abandoned aluminium factories under state ownership. Many factors led to high demand for aluminium products then. As a result, more entrepreneurs came into this sector. This growth continued till the 80s when there were nearly 4,000 aluminium factories with a total workforce of a few hundred thousand people.
Around the late 80s, Bangladesh began to import foreign kitchen and dining tableware on a large scale. Also, local plastic and ceramic industries began to blossom. The combination of these two factors dealt a heavy blow to the demand for aluminium products. As a result, declining sales pushed many aluminium factories to shut down. Most skilled workers moved to other industries.
Still, nearly 65 per cent people in rural areas of the country are dependent on aluminium utensils. Bangladeshis are very good craftsmen in aluminium products now.
At this stage, it will be appropriate for the government to revive this essential industry through necessary initiatives. Some steps like allocating land at lower prices to set up an aluminium industry zone, encouraging technical training of workers in this industry and facilitating import of machinery required for this industry can be taken.
The government should also lower bank loan interest rate for entrepreneurs in this industry. It can also lower VAT on imported aluminium ingot, provide subsidy for aluminium product exporters and impose duty on imported kitchenware. Such steps can save the local aluminium industry.
Ali Azam Bhuiyan,
Bhuiyan Aluminium Works Limited,
57 Muradpur (Panchlaish), Chottogram