Bangladesh's ceramic industry should be celebrated as one of the nation's most resilient manufacturing success stories. Built not on preferential state patronage or heavy subsidies, but on the sheer determination of private entrepreneurs, the sector today commands a domestic market estimated at Tk 8,000 crore. With a cluster of more than 80 factories employing hundreds of thousands and exporting to over 50 countries, the industry saves nearly $2 billion annually in import substitution. Yet, this entire industrial base now stands on precarious ground. A worsening gas shortage, heavy raw material dependency, and persistent logistical weaknesses are threatening to erode decades of progress at precisely the moment when global markets are presenting unprecedented opportunities.
A History of Private Grit over Policy: The industry's rise was rooted in a simple but potent advantage: abundant, cheap, and sulphur-free natural gas. This energy source enabled early factory owners-from Monno and Shinepukur to RAK Ceramics, and later DBL, Akij, and Abul Khair-to scale production despite minimal direct government support. The historical narrative is clear: private risk-taking built this industry, not industrial policy. From the 1990s onward, entrepreneurs imported state-of-the-art European and Chinese technology, trained a specialized workforce from scratch, and capitalized on a rapidly expanding urban housing market.
Protective tariffs on imported ceramics helped domestic producers compete with foreign products, allowing Bangladesh to transition from an import-dependent market in the 1980s to one now dominated by local manufacturers. However, even during this growth phase, the industry's most persistent challenge emerged early: the labyrinthine struggle for gas connections. Sector leaders have long pointed to bureaucratic dysfunction in pipeline allocation. This sector expanded despite-rather than because of-the state's governance framework. Unlike the Ready-Made Garment (RMG) sector, ceramics did not enjoy the early luxury of bonded warehouse facilities or targeted fiscal incentives. Entrepreneurs pushed forward in an environment where political access often outweighed technical merit, proving that the industry's foundation was built on individual resilience.
The Energy Paradox and the 15-PSI Crisis: Ironically, the same energy dependency that once powered the ceramic boom is now suffocating it. Domestic gas production has fallen sharply over the past decade, while national demand has surged. To bridge this gap, Bangladesh has become increasingly reliant on imported LNG, which costs significantly more than locally produced gas. While industrial gas tariffs have risen dramatically, the higher price floor has not guaranteed a reliable ceiling for supply.
For a ceramic factory, gas is not just a utility; it is a critical raw material. Ceramic kilns require stable, continuous pressure, typically between 10 to 15 psi. When pressure fluctuates or drops, as it now does frequently, the consequences are catastrophic. Kilns shut down mid-cycle, causing "thermal shock" that destroys entire batches of tiles or tableware. Beyond the lost product, the mechanical toll is immense; restarting a cold kiln can take days and consumes a massive amount of energy just to reach the required firing temperatures again. At the height of recent energy shortages, more than 20 factories were reportedly forced to curtail or suspend production, leading to cancelled international orders and a loss of confidence among global buyers.
A Global Realignment at Stake: What makes this moment especially critical is that the global ceramics market is undergoing a realignment that should, in theory, favor Bangladesh. China, the world's dominant producer, is facing rising labor costs and stricter environmental regulations. India's massive Morbi cluster has been hit by fuel price volatility, and Vietnam is encountering market saturation. These shifts have created a vacuum in the global supply chain that Bangladesh is uniquely positioned to fill.
Bangladeshi ceramic tableware has already gained international recognition for its ivory-like finish and durability, finding its way onto the shelves of premium retailers in the US, UK, EU, and Australia. Industry leaders have long argued that with the right support, ceramics could emerge as the "next RMG" in terms of export diversification. However, the country risks missing this golden window because core domestic challenges remain unresolved.
The Silent Killer: Logistical Fragmentation: Beyond the visible energy crisis lies a silent but formidable barrier: logistics. Nearly 90% of the raw materials used in Bangladesh-including clay, quartz, feldspar, and glaze chemicals-must be imported. This creates a high sensitivity to foreign exchange fluctuations and port efficiency. Any disruption in customs clearance or a delay at the Chittagong port immediately ripples through the production line.
Domestic logistics further compound the problem. Bangladesh lacks the integrated industrial clusters seen in China or Vietnam. We have no dedicated ceramic industrial zone, no common raw material storage facilities, and no shared testing infrastructure. Our factories are often forced to manage their own fragmented supply chains, adding layers of cost and time. For an industry handling heavy, fragile, and high-volume goods, the absence of a dedicated logistics hub or specialized transport corridors is a major competitive disadvantage.
A Call for Strategic Policy Alignment: If Bangladesh is to turn this crisis into a sustainable opportunity, the policy vacuum must be filled. While a modest export incentive exists, it pales in comparison to the comprehensive ecosystem supporting the garment industry. We need a long-term energy strategy tailored to energy-intensive industries, including ring-fenced LNG allocation for export-oriented factories.
Furthermore, the government should consider a "Ceramic Park" concept-a dedicated zone with bonded warehouse facilities and shared firing infrastructure. Modernizing our logistics, from digital customs systems to expanded port capacity for bulk minerals, is no longer an option but a necessity. Finally, there must be a shift toward investing in design and branding, ensuring that "Made in Bangladesh" ceramics compete not just on price, but on aesthetic value and innovation.
Bangladesh's ceramic industry stands at a crossroads. One path leads to stagnation and the eventual cooling of our kilns; the other leads to a diversified, multi-billion-dollar export future. Our entrepreneurs have carried the sector this far on their own. Now, it is up to the policymakers, regulators, and energy planners to decide if they will provide the fuel to keep the fires burning.
The writer is Port Shipping & Logistics Strategist and Industry Analyst; Former Head of ICD Kamalapur & Pangaon ICT, CPA; Adjunct Faculty, Bangladesh Maritime University
