DCCI Sounds Alarm as Chemical Industry Bottlenecks Hit Key Export Sectors

Bangladesh is failing to unlock the full potential of its more than USD 6 billion chemical market, with excessive dependence on imports, unreliable energy supplies, high tariffs and regulatory bottlenecks preventing the emergence of a strong domestic backward linkage industry vital for sustaining export growth, business leaders have warned.

They made the observations at a seminar titled "Development of Backward Linkage Industry in Chemical-Dependent Export-Oriented Sectors," organised by the Dhaka Chamber of Commerce and Industry (DCCI) at its office in Dhaka on Saturday.

Speakers stressed that strengthening the country's chemical industry has become essential to reducing import dependence and enhancing the global competitiveness of Bangladesh's export-oriented sectors, particularly readymade garments (RMG), textiles, leather and pharmaceuticals.

Addressing the seminar, DCCI President Taskeen Ahmed said building a comprehensive roadmap for the chemical backward linkage industry is "no longer optional but a strategic necessity" if Bangladesh is to safeguard the future of its export sector.

"The export competitiveness of Bangladesh's RMG, textile, leather and pharmaceutical industries depends heavily on a reliable and competitive chemical supply chain," he said.

Taskeen noted that the country's industrial expansion continues to be constrained by heavy reliance on imported dyes, chemicals and specialised industrial raw materials, alongside complex tariff structures, lengthy environmental clearance procedures, administrative delays in obtaining licences and persistent logistics bottlenecks.

He said these structural weaknesses not only inflate production costs but also undermine the competitiveness of local manufacturers in international markets.

Presenting the keynote paper, Asif Rabbani, Managing Director of SR Industries Ltd., said Bangladesh's domestic chemical market is currently valued between USD 6 billion and USD 8 billion and is expanding at an annual rate of 10 to 15 per cent.

He revealed that the country imported chemicals worth USD 6.2 billion in 2025, with the bulk consumed by the RMG, pharmaceutical and leather industries.

Rabbani identified inadequate logistics, high tariff rates, weak infrastructure and the absence of an efficient domestic supply chain as major barriers to developing a competitive chemical industry. He urged policymakers to modernise relevant regulations while simultaneously investing in local manufacturing capacity.

Speaking as a special guest, Md. Salim Ullah, Director General of the Bangladesh Institute of Management (BIM), said the government is currently reforming the national industrial policy and is open to introducing targeted measures for the sector.

He said entrepreneurs should decide whether the industry requires a dedicated chemical policy or whether its priorities could be incorporated into the existing industrial policy framework, adding that such clarity would enable the government to take quicker decisions.

Salim Ullah also underscored the importance of stronger public-private collaboration, particularly in developing a skilled workforce to support industrial expansion.

Another special guest, Abul Fattah Md. Baligur Rahman, Member of the Bangladesh Council of Scientific and Industrial Research (BCSIR), called for closer collaboration between industry and academia to accelerate technological innovation.

He encouraged entrepreneurs to utilise BCSIR's research outputs and locally developed technologies, noting that Bangladesh's light engineering market is worth around Tk 5,000 crore but requires stronger policy support and uninterrupted electricity and fuel supplies to realise its full potential.

Among others attending the seminar were former DCCI Senior Vice-President Alhaj Abdus Salam, DCCI Member M. S. Siddiqui, DCCI Senior Vice-President Rajib H. Chowdhury and DCCI Vice-President Md. Salim Solaiman.