Steel, re-rolling millers for govt steps to cut MS-rod production cost

FE Report The country's steel and re-rolling millers have urged the government to take necessary steps for reducing the production cost of MS-rod to stabilise the price of the basic construction material during the peak season. The request came from a press conference in Dhaka Reporters' Unity Monday. Bangladesh Auto Re-Rolling Still Mills Association (BARSMA), Bangladesh Steel Mill Owners Association and Bangladesh Re-Rolling Mills Association jointly organised the programme. BARSMA president S K Masadul Alam Masud said, "Due to high import tax and other policy barriers the import cost of basic raw materials of the re-rolling mills has increased, forcing us to hike the price of MS-rod." "High cost of raw materials along with electricity and gas crunch has placed the millers at a position to lay off their units." "Construction work in public sector has decreased. On the other hand, construction work in private sector has also come to a standstill in absence of new gas connection. Both the factors have brought down sale of MS-rod drastically," Masud said. "We cannot use more than forty per cent of our units' capacity following rather low supply of our products. Despite the situation, we have to pay full wage of our staffs. We are becoming sick day by day, and production cost of the products is increasing further." As a result, out of the three hundred mills, only one hundred are in operation. Mr Masud also expressed his dismay regarding the government's recent move to let India use Ashugonj river-port, as the permission might add to the woes of the industry. The association leaders urged the government to reduce taxes and eradicate other policy barriers in importing raw materials for greater interest of the local construction sector. They said banks are charging 16 to 18 per cent interest on loans, thus threatening their sustainability to some extent. They also called for initiating negotiation with India to allow the local millers to export MS-rod without any tax. The leaders also threatened to launch a tough movement, if their demands are not considered. Among others, Md Sahajahan, secretary general of Bangladesh Steel Mills Owners Association, and Sheikh Fazlur Rahman, secretary of Bangladesh Re-Rolling Mills Association, were present at the press conference. Abul Kashem Mojumder, secretary general of Bangladesh Auto Re-Rolling and Steel Mills Association, presented the keynote paper in the programme.