In a bid to support the domestic brick manufacturing sector, the government has announced plans to enforce the use of locally manufactured materials in public projects. This initiative comes amidst longstanding concerns raised by brick manufacturers regarding stiff competition from imported sources.
The current government, during its first tenure as the second elected government, issued an order instructing the use of local bricks in public infrastructure construction was issued by the Prime Minister’s Office in December 2015. However, the practice never gained momentum.
Instead, the use of imported bricks persisted. Due to this, brick manufacturers in the country found themselves grappling to sustain their businesses, with some being compelled to shut down their manufacturing plants.
In yesterday’s press briefing, the Industry, Commerce, and Employment Minister Namgyal Dorji said that local manufacturers have appealed to the government to reduce brick imports. He added that the government is doing everything possible to encourage in-country production but he said meeting the standards set by the Bhutan Standards Bureau is one of the main challenges.
“They share that it is difficult to meet the standards set by the Bhutan Standards Bureau. And it is true, it is difficult because the quality of materials is crucial. But it doesn’t mean that the government has not supported the private sector. The government has carried out an awareness programme and even provided training on international best practices for brick manufacturing.”
The minister emphasised that while local manufacturers need to produce quality products and be able to meet market demand effectively, banning or lowering imports is not a wise option as it could affect the economy. Brick manufacturers in the country have been appealing to the government to lower import and certify their bricks.
“If we start imposing high taxes on imports and the local manufacturers start increasing their prices, this will disrupt the country’s economy. So if local manufacturers keep these three things in mind, the ministry has been and will keep supporting these businesses.”
The prime minister added that the government is planning to issue an order, like the one issued in 2015.
“During the second government’s tenure, the government directed to use of locally manufactured materials for any construction works by the government if enough materials were being produced in the country. Now, we are planning to issue the same directive again.”
Currently, there are 16 BSB-certified brick manufacturers in the country out of 120 licence holders. The industry, commerce and employment minister said that an additional 16 are awaiting certification. He assured that the assessment processes for the pending certifications would be expedited, with completion expected within the next year.
In the first quarter of 2023 alone, Bhutan imported more than 25 million bricks from India worth over Nu 313 M. In 2022, the import figure stood at over 42 million bricks amounting to more than Nu 528 M for the entire year.
Karma Samten Wangda
Edited by Kipchu
