Uncertainty looms over the export of charcoal worth Tk 2,500 crore as allegations of discrimination and mismanagement have surfaced within the Bangladesh Charcoal Manufacturers and Exporters Association (BCCMEA).
Pro-Awami League figures have been removed from key business associations like the FBCCI, BGMEA, and BKMEA, but they continue to hold influence in the BCCMEA.
Charcoal traders have submitted a memorandum to the Ministry of Commerce, urging an end to this discrimination and calling for efforts to boost exports.
China is the main importer of Bangladesh's charcoal, which is also exported to Taiwan, Brazil, Mexico, the USA, Australia, Canada, Japan, Turkey, South Korea, Germany, and other European countries.
Charcoal, derived from jute ash, is primarily used in products such as carbon paper, printer ink, fireworks, cosmetics, mobile batteries, and personal care items like face washes and toothpaste.
The charcoal sector has significant growth potential as an export industry, with last year’s exports totaling about Tk 2,500 crore. Experts believe this could rise to Tk 5,000 crore.
However, the president of BCCMEA, Mirza Zillur Rahman Shipon, younger brother of former State Minister for Jute and Textiles Mirza Azam, is accused of hindering growth due to monopolistic practices and illegal contracts.
It has been alleged that Awami League supporters within the association have created a syndicate, controlling access to shipping lines and limiting it to select traders. Non-Awami League businessmen have reportedly been barred from shipping products, leading to a stalemate within the association. Zillur Rahman has denied these accusations.
According to sources within BCCMEA, Shipon’s leadership has led to discrimination against many members, who claim they are being forced to export goods at lower prices through exclusive contracts with favored shipping companies. The president and his close associates are said to have monopolized factories and markets, sidelining experienced exporters and buyers.
Additionally, Chinese factory owners and buyers have been replaced with preferred Bangladeshi businessmen, further tightening the president’s control over the market. Charcoal is now supplied to select buyers, bypassing traditional buyers and restricting market access.
Industry insiders point out that the production season for jute sticks, which are converted into charcoal, runs from October to April, and the sector is now in its final stage for the year. Bangladesh produces 32 to 35 lakh tons of jute sticks annually, and if 60% of these are converted into ash, the country could generate 450,000 tons of charcoal per year. With a ton of ash priced between $900 and $1,100, the export potential is estimated at Tk 5,000 crore annually. The industry could also create jobs for 2 million people.
However, amidst growing unrest, a committee was allegedly formed with handpicked members to manage the association, ignoring the views of ordinary members. In response to the allegations, BCCMEA President Mirza Zillur Rahman said: “There is no conflict within the committee. The allegations of collusion with a shipping company are false.”
Source: Bangladesh Pratidin
BDST: 1558 HRS, OCT 12, 2024
