Export of plastic products witnesses nearly 18% growth

The export of plastic products witnessed a healthy growth of nearly 18 percent during the July-April period of the current fiscal year (FY24) fetching US$201.09 million due to competitive price advantage and the creation of newer markets.

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.

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

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 a key role in the export growth of this sector.

"The local manufacturers are now making world-class plastic items. This is encouraging the foreigners to buy plastics items from Bangladesh. Newer markets are being created now and then for this sector which is 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 the necessary market 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 percent," he added.

The BPGMEA President also urged the government to direct foreign missions abroad for helping to find newer markets for Bangladeshi plastic manufacturers.

Citing that the corporate tax rate alongside the other taxes in the plastic sector is high 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.

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

According to the data from the BPGMEA, the local plastic manufacturers are now exporting more than 142 items abroad including film plastic, household items, and garment accessories. The industry insiders hoped that the export of plastic items would cross US$250 million in 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) totaled US$170.6 million.

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

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