Brickmakers grapple with increased licence fees, production costs

14 Jan 2023

DMG Newsroom
14 January 2023, Sittwe

Brickmakers in Arakan State are struggling due to increased production costs and licence fees, while at the same time demand is declining. 

The licence fee has increased from previously 1 kyat per brick to 3 kyats now, according to brickmakers.

The increased licence fees will force many brickmakers to leave the business, brickmaker Ko Nyi Maung Aye from Kyaukphyu Township’s Ohn Taw Village told DMG.

“We want authorities to relax the requirement. Under such circumstances, we will have to leave our business in the long run,” he said.

Local brickmakers in Arakan State also face other challenges, such as the limited availability of land for brickyards, limited availability of firewood, and adverse weather conditions.

Meanwhile, the price of firewood used in making bricks has increased from around 250 kyats for one piece to around 1,000 kyats per piece now. Brickmakers are therefore struggling to cover production costs, said brickmakers from Thinganet Village in Sittwe.

“The capital we need for building brick kilns has nearly doubled, from 10 million kyats to 20 million kyats. The price of firewood has also increased significantly,” said brickmaker Daw Ma Waing Che from Thinganet Village.

While bricks are also selling at high prices — between 150 and 200 kyats per brick — brickmakers lament that profits amount to no more than 30 kyats per brick.

Brickmakers in Arakan State have called on authorities to subsidise the brickmaking industry, or make loans more readily available to brickmakers. 

“Brickmaking requires significant investment,” said brickmaker U Hla Myint from Tein Nyo Village in Mrauk-U Township. “Sometimes, we make losses. It would help us if the government provided us with some loans.”

Adding to the challenges facing brickmakers, some construction sites in Arakan State have suspended operations due to the increased prices of building materials. Demand for bricks has declined as a result.