Local refrigerator industry facing manifold problem
Friday, 19 March 2010
AHM Mahmodul Hoque
Refrigerator manufacturing industry in the country is facing manifold problem in securing a sustainable growth in the local and export markets due to lack of government's policy support, according to industry insiders.
They said at present a large production capacity of the industry was remaining unutilised due to the unrestricted and bulk quantity import of complete built unit (CBU) refrigerators and also unfavourable export policy.
Urging state support they said the government must impose restrictions on import of refrigerators and remove all barriers to export business so that the booming industry could play a vital role in the country's industrialisation.
"The industry is now a self reliant one having huge export potential. But it is facing huge difficulties because the existing import policy is largely benefiting the importers instead of manufacturers," said a high official of Bangladesh Refrigerator Manufacturers Association (BRMA).
Besides, the industry was ready to take off from home market to market abroad as it was capable of competing in the international market cashing in on high quality products at competitive prices, he added.
According to the association the yearly local demand of refrigerators is around of 0.4 million pieces but the industry is capable of producing 0.8 million pieces of refrigerator per year.
While talking on the matter president of BRMA SM Ashraful Alam said: "We have a surplus production of 0.4 million pieces per year, which we can easily export to the potential export markets provided there was government support."
He said at present 60 per cent of the local production is lying idle in the factory godowns as a section of importers in connivance with the port customs authority are importing huge CBU fridges through under-invoicing and false declaration and selling it to the local market at lower prices.
"Due to the free import, the locally made products have been facing stiff competition and at the end of the day local industry is suffering and fighting for its existence," he said with a frustrated note.
However, he said, though the industry had huge export potential but was yet to take the opportunity mainly due to absence of government patronisation and incentive package.
He mentioned that many of the world's refrigerators manufacturing companies had already closed down their production units as such industries were not viable there in the present global economic condition.
The optimistic BRMA leader said overcoming all the barriers and availing necessary policy support provided by the government, the industry would have to show its real potential making the country a leading exporter of refrigerators in the global arena.
Refrigerator manufacturing industry in the country is facing manifold problem in securing a sustainable growth in the local and export markets due to lack of government's policy support, according to industry insiders.
They said at present a large production capacity of the industry was remaining unutilised due to the unrestricted and bulk quantity import of complete built unit (CBU) refrigerators and also unfavourable export policy.
Urging state support they said the government must impose restrictions on import of refrigerators and remove all barriers to export business so that the booming industry could play a vital role in the country's industrialisation.
"The industry is now a self reliant one having huge export potential. But it is facing huge difficulties because the existing import policy is largely benefiting the importers instead of manufacturers," said a high official of Bangladesh Refrigerator Manufacturers Association (BRMA).
Besides, the industry was ready to take off from home market to market abroad as it was capable of competing in the international market cashing in on high quality products at competitive prices, he added.
According to the association the yearly local demand of refrigerators is around of 0.4 million pieces but the industry is capable of producing 0.8 million pieces of refrigerator per year.
While talking on the matter president of BRMA SM Ashraful Alam said: "We have a surplus production of 0.4 million pieces per year, which we can easily export to the potential export markets provided there was government support."
He said at present 60 per cent of the local production is lying idle in the factory godowns as a section of importers in connivance with the port customs authority are importing huge CBU fridges through under-invoicing and false declaration and selling it to the local market at lower prices.
"Due to the free import, the locally made products have been facing stiff competition and at the end of the day local industry is suffering and fighting for its existence," he said with a frustrated note.
However, he said, though the industry had huge export potential but was yet to take the opportunity mainly due to absence of government patronisation and incentive package.
He mentioned that many of the world's refrigerators manufacturing companies had already closed down their production units as such industries were not viable there in the present global economic condition.
The optimistic BRMA leader said overcoming all the barriers and availing necessary policy support provided by the government, the industry would have to show its real potential making the country a leading exporter of refrigerators in the global arena.