The cement industry is facing trouble importing raw materials as the country's reserves of the US dollar was falling, according to Bangladesh Cement Manufacturers Association (BCMA). 

"The cement manufacturers are currently facing great obstacles while opening new LCs (letters of credit)," Md Alamgir Kabir, president of the BCMA, told a press conference organised by the association at Amari Dhaka yesterday.

Two and a half decades ago almost the entire country's demand for cement was met through imports, he said.

Since then, the cement industry has thrived and become well organised due to bold steps taken by entrepreneurs and the government's policy support and now even exports cement, he said.

At present, about 35 local and foreign companies are involved in cement production in the country having an annual capacity of about 79 million tonnes against a demand for about 39 million tonnes.

There is intense competition in the market as production capacity is almost twice as much as the demand and the companies are suffering financially for having to sell the products at a nominal price to survive, said Kabir.

The main raw materials -- clinker, slag, limestone, fly ash and gypsum -- have to be imported, he said.

Limestone can comprise a maximum of 35 per cent of the final product as per the Bangladesh Standards and Testing Institution and European norms and its import price is the lowest, he added.

However, duty on it has been increased to 67 per cent of the import value from a previous 27 per cent and a 2 per cent advance income tax is levied at the sales stage as well, said Kabir.

He also alleged that the government was not paying attention to the issue and for this, the emerging industrial sector was suffering.