CHATTOGRAM, Jan 23: Furniture manufacturers based in the region have urged the authorities concerned to reduce the import duty on raw materials and accessories to facilitate them entering the export markets.
They said the heavily import-dependent sector has made a significant breakthrough in diversification of designs and improving quality - two major pre-conditions for exports - over the last several years.
But 70 per cent of the necessary inputs, including quality wood, needed to be imported with high duty, said the manufacturers in Chattogram.
If the import duty is reduced to five to seven per cent, they said, the local manufacturers would earn a lot of foreign exchange for the country.
The leaders of Chattogram Division Furniture Manufacturers on Wednesday stressed the need for the duty cut while talking to the FE on the sidelines of the six-day Chattogram Divisional Furniture Fair in the city.
The 10th furniture fair started on Tuesday at the GEC Convention Centre, displaying products from some 40 manufacturers from Chattogram and Dhaka.
There are nearly 500 furniture factories, big and small, in the Chattogram region. But none of them could enter the export markets due to the high import duty on the raw materials and accessories.
The furniture manufacturers import wood, boards, fabrics, hooks, chemicals and other hardware accessories. Wood is mainly imported from the USA, Europe and the African countries while most of the accessories are imported from China, Malaysia, Italy and some other European countries.
The leaders said the factories needed to be relocated in a well-facility export zone in or around the port city or in the Mirsarai or Anwara special economic zones. They sought at least 10 acres of land for relocation of the factories located at different parts of Chattogram.
The factory owners also requested the authorities concerned through Chittagong City Mayor AJM Nasir Uddin, who assured them of taking up the issues with respective departments.
The mayor inaugurated the fair as chief guest while president of the Chittagong Chamber of Commerce and Industry Mahbubul Alam and General Secretary of the Bangladesh Furniture Industries Owners Association (BFIOA) Md Ilyas Sarkar addressed the event as special guests.
Chattogram Divisional President of BFIOA Syed ASM Nuruddin said the relocation of the factories to the zones would facilitate smooth expansion of the potential sector.
Due to the scattered location, he said, the factories were facing different problems in getting the utility services. "This is one of the problems that affecting proper growth of the sector."
If the existing political stability continues, he added, the industry would grow further and many factories would be able to export furniture.
General Secretary of the association Md Maksudur Rahman said that most of the local furniture factory owners are also facing fund constraints as the sector is yet to draw attention of the banks.
The sector needed bank loans at single digit interest rate alongside incentives like other export sectors, he added.
Although none of the local manufacturers are directly exporting as yet, he said, they are making furniture for the Dhaka-based exporters.
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