Export of plastic products witnesses nearly 18pc growth

The export of plastic products witnessed a healthy growth of nearly 18% during the July-April period of the current fiscal year, which started in July 2023, fetching $201.09 million due to competitive price advantage and creation of newer export destinantions.

According to the latest statistics of the Export Promotion Bureau (EPB), this was the highest volume of export of plastic items during the 10-month period compared to the same period of the previous fiscal years.

The Bangladeshi plastic products are basically being exported to the United States of America (USA), Canada, European Union (EU), China, India and Nepal.

According to the research findings of the Bangladesh Investment Development Authority (BIDA), the majority of Bangladesh's exportable plastic items are tableware and kitchenware.

Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) President Shamim Ahmed said the competitive price of locally-made plastic items has played the key role in the growth of exports in this sector.

"The local manufacturers are now making world-class plastic items. This is encouraging the foreigners to buy plastics items from Bangladesh. Newer export destinations are being created every now and then for this sector helping to expand its export market," he added.

Noting that the country's plastic sector mainly represents the SME sector, Shamim said the entrepreneurs of this sector are not being able to make necessary marketing abroad.

"If necessary marketing of local plastic items can be done abroad properly, then it will be possible to boost the export earnings from this sector by almost 100%," he added.

The BPGMEA president also urged the government to direct foreign missions abroad to help find newer export markets for the domestic plastic manufacturers.

Citing that the corporate tax rate alongside the other taxes in plastic sector is higher compared to the RMG sector, Shamim demanded of the government to lower such tax rates to boost the country's export earnings from the plastic sector.

The national news agency, Marketing Director of PRAN-RFL Group Kamruzzaman Kamal said although the export receipts from the plastic sector in the last fiscal year (FY23) was not very much satisfactory, the export earnings from the sector would make a turnaround this fiscal year due to the improvement in developed economies.

According to the data from the BPGMEA, the local plastic manufacturers are now exporting more than 142 items abroad including film plastic, household items, garment accessories. The industry insiders hope that the export of plastic items would cross $250 million this fiscal year.

As per the statistics of the EPB, the export of plastic items during the July-April period of the last fiscal year (FY23) totalled $170.6 million.

The strategic export target for the plastic sector in the current fiscal year (FY24) has been set at $275 million.

Mentionable, the global market size of plastic products is worth $$600 billion.