Squeezed by rising production costs and sluggish activity in the construction sector, the country’s tile manufacturers have announced a price increase, raising prices by Tk1 per square foot for wall tiles and Tk2 for floor tiles.
While individual companies have periodically raised prices in the past, the latest move marks the first time the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) has publicly announced a price adjustment for the industry, according to association leaders.
The new rates took effect on Wednesday.
Manufacturers say the increase is largely symbolic and falls far short of compensating for successive hikes in gas prices, rising raw-material costs and higher operating expenses.
For consumers building or renovating homes, however, the adjustment adds to an already expensive construction process at a time when purchasing power and demand remain weak.
BCMEA President Moinul Islam said the Tk1-2 adjustments would raise prices by 1-2% for most tiles or even less, although the impact could reach 3-4% for lower-priced products.
“The increase is not enough to bring us out of losses. We have made a symbolic adjustment and will assess the market response before deciding on a formula for future price increases,” he said.
Moinul also noted that industrial gas prices had risen by at least 300% over the past six years, while prices of other raw materials on international markets had doubled over the same period.
For manufacturers selling 1,000 square feet of tiles, the adjustment would generate an additional Tk1,000-2,000 in revenue, depending on the product category, he said.
He added that manufacturers had been seeking higher prices for some time because of rising global raw-material costs and successive increases in gas prices. However, weak market conditions and consumers’ limited purchasing power had prevented them from raising prices earlier.
Small increase, additional burden for buyers
Tile prices vary widely according to quality, design, size and manufacturing technology. Standard ceramic tiles generally cost Tk50-150 per square foot, while higher-grade porcelain tiles sell for Tk120-350. Premium marble tiles can cost Tk400-1,800 per square foot.
Popular local brands, including Great Wall and Akij, sell 24-by-24-inch floor tiles for around Tk95-130 per square foot, according to market prices cited by industry representatives.
Under the new rates, a buyer purchasing 1,000 square feet of wall tiles would pay an additional Tk1,000 if the full Tk1 increase were applied. The same quantity of floor tiles would cost an extra Tk2,000.
A buyer purchasing 2,000 square feet of floor tiles would face an additional cost of Tk4,000, excluding any further changes in retailer margins or other charges.
Although these amounts may be relatively small compared with the overall cost of building a house, they add to the cumulative expenses of cement, steel, sanitary ware, electrical fittings and labour.
Hasibur Rahaman, a tile retailer in Banglamotor, Dhaka, said the price adjustment could affect customers’ purchasing decisions, particularly those working with tight construction budgets.
He said the announcement came at a time when manufacturers had struggled to raise prices despite mounting production costs.
Irfan Uddin, BCMEA general secretary and managing director of a ceramic company, said manufacturers could not increase the prices of finished products at will, even when production costs rose sharply.
As a result, producers had continued operating at a loss in the hope that market conditions would improve, he said.
Irfan said gas accounted for around 12% of the total production cost of ceramic products. Industrial gas prices had increased by at least 300% over the past six years, while domestic delivery, marketing and labour costs had also risen.
“Even with higher production costs, manufacturers cannot freely raise the prices of finished products. The adjustment we have announced is very small compared with the increase in costs,” he said.
Bangladesh has around 70 ceramic factories producing tiles, tableware and sanitary ware, with combined domestic and foreign investment of approximately Tk13,500 crore, according to industry data.
The sector exports products worth around Tk400 crore annually and contributes approximately Tk3,000 crore in government revenue. Its annual gas bill stands at around Tk1,200 crore, according to the association.
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