Bangladesh's aluminium utensil industry in the Talora port region might face extinction due to gas crisis and higher fuel costs

The Rajshahi district in Bangladesh is facing a gas inflow interruption (a cheaper option than fuel oil) and resulting in a surge in oil prices which might lead to the shutdown of various aluminium utensils industries in Bogura’s Talora port region.

The regional traders explained that the cost of furnace oil is so elevated that 10 out of 11 factories have been forced into an abrupt closure during the previous four years.

Yet the very little amount of aluminium utensils are still being formed in Talora but with the unavailability of a proper gas connection, the only running unit might also be closed, according to the locals.

Bogura town has a gas connection but it is 20km away from this port. Some of the units are manufacturing utensils with gas as an energy source which is cutting down their cuts exponentially.

Talora Port has always been well connected with rail and water bodies and it is 5km away from the Dupchanchia Sadar Upazila, which is why the region’s first utensil factory Khetwat Aluminium Works was founded here by an Indian national Laduram Agarwal. 

As the locals claim, several small and large factories (almost 12) began budding in the port area eventually reaching the requirement rate, in turn giving jobs to more than 500 workers.

The products of these units are sold all over the country like in Bugra, Kurigram, Sirajganj, Noagaon, Gaibandha, Joypurhat, Rangpur and Pabna. The factories manufacture a wide series of items ranging from pans, mugs pots and buckets.

The factories utilize ingots, large sheets of aluminium and various other metals as raw materials during production. The metals are smelted using burning oil, jute sticks and furnace oil.

The rate of furnace oil is heightening by around Tk30-35 per litre each year. It costs Tk16 to produce 1 kg of utensils with furnace oil while it only costs around Tk8-9 to produce a similar amount of utensils burning gas.

Nur-e-Alam Chowdhury, owner of Pragati Aluminium in Talora which was forced to close two years ago, quoted: "Our business got hit hard by the fuel crisis. Gas is available in the city but not here. The price of furnace oil has skyrocketed over the last few years, multiplying our production costs."

"I could not survive the loss. Besides, my factory could not be shifted elsewhere as no plot was allotted in my name in the Bangladesh Small and Cottage Industries Corporation (BSCIC) industrial zone in ​​Bogra," he mourned.

The proprietor of Talora Aluminium, Paban Prasad Poddar was compelled to close his factory almost one year back. The owner claimed that the crisis started during some previous years when factories in the outskirts of the city were registered to gas for fuel energy.

"The government is reluctant to provide gas connection to those of us who have factories at the administrative level. As a result, we lost our factories and many have lost their jobs," he explained.

A small business owner yet a skilled one at that, Shafiqul Islam Babu had constructed his factory just three years ago. He had invested a lot of funds taken from private companies and banks but the Covid-19 has brought unplanned difficulties to his business.

Shafiqul boasted that his aluminium tiffin boxes were in high demand in the Tolora market region as he is the only manufacturer of such a product among the varied items of the market.

He is now going on with his business at a much smaller level, taking loans with augmented interest rates. That is why this small businessman requires a small-interest loan from the government.

Sourav Aluminium Works remains the only operating factory in the area with Subhas Prasad the owner being confident that the production will go upstream once the gas connection is successfully framed.

"Production costs will also be lower. With the cost of one month of furnace oil, we can buy gas and produce utensils for six to seven months," he said.

Subhas, in addition, explained when four years back Bogra was presented with a gas connection, the traders of the port had submitted an affidavit to the commissioner demanding gas but their requirements were never taken into account.

Subhas Prasad even said that this condition has thrust the dwelling of many traders and workers into complete uncertainty and it is time for the government to intervene and take care of the situation.

The deputy general manager of the Bangladesh Small and Cottage Industries Corporation (BSCIC), AKM Mahfuzur Rahman, exemplified: "BSCIC provides low-interest loans to small entrepreneurs. In addition, training facilities for entrepreneurs are also available."

"Bogura is an industrial area in North Bengal and there are many traders here. Thus, it is difficult for the BSCIC to allocate space for all of them at present. There is a possibility of another BSCIC city in Bogra and the rehabilitation of aluminium traders will be considered at that time," he added.

When enquired if a gas connection would be catered to the Talora Aluminium Industry, the Bogura Deputy Commissioner, Ziaul Haque exclaimed that the government has the means to supply gas to industrial factories.

"I will contact the gas companies in this regard. At the same time, I will inform senior government officials in correspondence on how to save these factories," the DC concluded.