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MYMENSINGH BSCIC
Businesses irked by rising costs of raw materials
MD AMINUL ISLAM, Mymensingh
Businesses at the Bangladesh Small and Cottage Industry Corporation’s (BSCIC) industrial estate in Mymensingh are feeling the bite of higher raw material costs coupled with rampant load-shedding, according to various entrepreneurs.
Established in 1968 on 20 acres of land in the Maskanda area of Mymensingh city, the BSCIC estate has 91 industrial units covering 105 plots.
However, the 83 operational units are all struggling to overcome the current crisis following two years of pandemic-induced losses.
So, the situation could become worse if things continue the way they are, local businesspeople told this correspondent during a recent visit.
“This situation is even more critical than the Covid-19 period,” said Kamruzzaman Farazi, manager of Bismillah Food Products.
Farazi then informed that factories like his are having to use wood fuel to continue operations due to the lack of gas connections. In addition, they are having to purchase more diesel to power generators during load shedding, raising production costs in the process.
As such, the cost of making 25 kilogrammes (kgs) of puffed rice has increased to around Tk 450 in the last three months.
Meanwhile, selling prices have remained the same while demand for the product has fallen sharply due to ongoing inflationary pressure, which is limiting the purchasing capacity of general people.
“We have counted losses of Tk 50 lakh in the last several months,” Farazi said, adding that he was subsequently forced to reduce his workforce from 30 employees to just five.
Momen Uddin Ahmed, proprietor of the Daffodil Muri Mill, said he has been making puffed rice for 14 years but never faced such a situation before.
And although raw material costs have increased in recent months, puffed rice makers dare not hike their product prices considering the low demand.
“Besides, extortion by different quarters of the supply chain in Mymensingh and its adjoining districts has increased, adding salt to our injuries,” Ahmed said.
Ashraful Islam Tushar, manager of Bismillah Enterprise, another puffed rice factory, said their production has fallen by around 40 per cent due to frequent power cuts.
During a visit to the estate’s Laziz Biscuit Factory, workers were found baking products using wood as there is no gas connection at the unit.
“Also, the number of employees has come down to 15 from 26 in recent months as our production has decreased by one-third,” said Nabi Hossain, head technician of the factory.
The price of raw materials used in biscuit making, such as soybean oil, flour and sugar, have soared in recent months and there is no sign that the situation will return to normalcy anytime soon.
“But even in such a situation, hiking our product prices would be a serious risk as the sales volume is not up to the mark,” Hossain added.
Rowjatul Islam, manager of Fair Agro Chemicals, said his unit mainly repackages insecticides and agriculture related vitamins that are supplied to different parts of the country.
However, frequent power outages are making it difficult to carry out even the simplest tasks, he added.
The present situation has cast doubt on whether businesses at the industrial estate in Mymensingh will be able to return to continue their activities in the future, according to Ruhul Amin, joint convener of the local BSCIC Industry Owners Association.
He went on to say that gas supply at the estate is normal and only a few new connections have been delayed. However, he holds the rampant load shedding responsible for hampering regular production.
Industrial units at the estate once collectively employed some 5,000 people but due to the current crisis, their numbers have decreased by half, Amin said.
And like many other BSCIC estates dotted across the country, businesses at the one in Mymensingh are also facing serious difficulties for the dilapidated inner roads that have inadequate drainage systems.
As a result, rainwater becomes stagnant on the roads even after light precipitation during the monsoon season, sources said.
During times of heavy rainfall, water enters the factories and remains stuck there for days.