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The price of coal in Bangladesh has flared up by some 78 per cent over the past year, hitting Tk 32,000 per tonne at present compared to Tk 18,000 per tonne previously, as depreciation of the local currency against the US dollar has made imports costlier, according to industry people.
As such, brickmakers in the country are facing higher input costs, including that of transport and labour, which is why many of them are using firewood despite official instructions to the contrary.
Bangladesh heavily depends on coal shipments from abroad to meet its annual demand of about 80 lakh tonnes, 70 per cent of which is used by brickfields while the rest go to garment markets and the power sector, importers say.
Shahidul Islam Mridha, owner of A&B Bricks in Patuakhali sadar upazila, said local brickmakers have to go all the way to the Tamabil and Bhomra land ports to collect coal, which increases transport costs considering the higher prices of fuel.
With this backdrop, prices of the key construction material have increased by an average of about 50 per cent year-on-year with prices now standing at about Tk 12,000 for 1,000 pieces while the same amount had cost Tk 8,000 in 2021.
Falah Uddin Ali Ahmed, a major coal importer, said even though the price of coal is stable in global markets, Bangladesh is having to pay more for imports due to higher US dollar rates.
As a result, importers that are financially weaker than big business houses have been unable to import coal for the past month, especially since Bangladesh Bank has tightened the rules on opening letters of credit (LCs) to relieve pressure on the country’s depleting forex reserve.
It currently costs between $115 to $130 to buy a tonne of coal from international sources with Bangladesh mainly importing the low-quality variety for use in brickfields, he said.
Ahmed went on to say that some 10 or 12 companies, including Partex, Bashundhara, Akij and Uttara Traders, are currently importing coal from Australia, Indonesia, India and South Africa.
The government had made it mandatory to use coal for baking bricks under its “Brick Prepare and Bhata Control Law” back in 2013 in bid to curb environment degradation.
Of the 72 brick kilns active in Patuakhali, 46 have received environmental clearance certificates.
These kilns require about 4 lakh tonnes of coal each year but as prices of the fossil fuel have increased, many are shifting back to the use wood, which causes significant deforestation.
Md Gias Uddin, president of the Patuakhali Chamber of Commerce and Industry, said many kilns are ignoring the production rules by burning wood.
Sill, law enforcement agencies are struggling to take appropriate action as the owners of most brick kilns hold influential position.
“So, the owners are breaking rules and regulations despite the district administration’s mobile court drives,” he added.
Uddin then said there are some brick kilns in the vicinity of settlements and educational institutions but as most of the owners are influential, they simply pay fines to avoid any real punishment.
This correspondent found that several bricks kilns on the banks of the Laukathi and Lohalia rivers in Patuakhali sadar upazila were found using wood instead of coal to continue production.
Kazi Saifuddin, assistant firector of the Patuakhali Environment Department, said they would not allow wood to be burned in the kilns.
“We are monitoring regularly. If any irregularities occur, legal action will be taken,” he said, adding that the offending kilns could be shut down.
Mohammad Kamal Hossain, deputy commissioner of Patuakhali, said they are taking strict actions to prevent wood burning at kilns.
Last year, five brickyards were closed due to various irregularities, including wood burning, and fined of Tk 30 lakh in various kilns.
(TDS)
