The country’s plastic industry continues to flourish with a diversified product base for both local and foreign markets. Not only the existing companies are expanding their operation but many new enterprises are also coming up in this sector taking its potential markets into consideration. Currently there are 5,000 plastic product manufactures in Bangladesh that have employed around 1.2 million people, whereas four-five years ago the number was 3,000. Around 65 percent of these factories are located in Dhaka, 20 per cent in Chittagong, and 10 per cent in Narayanganj. The remaining 5.0 per cent are in Khulna, Comilla, Bogra and Rajshahi districts. Bengal Group of Industries, PRAN-RFL Group, Thai Delux Plastic Industry and Tanin furniture etc are the country’s leading plastic product manufacturers. According to Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), plastic product industry contributes 1.20 per cent of the country’s GDP with a total investment of Tk 185.5 billion. Recently demand for plastic products in the local market has increased remarkably and reached Tk 200 billion, whereas four-five years back it was Tk 70 billion. The country’s average plastic products consumption has also risen significantly, BPGMEA officials said. At present it is above five kg, which was two kg in 2011-12, although comparing to global consumption – 80 kg on an average – Bangladesh is far below. However, to meet up the substantial domestic demand the country imports over 150,000 tonnes of plastic raw materials annually, and the figure has been rising gradually. After meeting the local demand, plastic factories are also exporting their products. More than 500 plastic units are involved in production of goods for export. At present, a total of 72 countries of North America, Europe, Asia-Pacific and Middle East are the major export destinations of Bangladeshi plastic products, the officials also said. The country’s plastic industry experienced a rise in export from 2009 to 2015. But in last fiscal year (FY), 2015-16, the export amount declined due to a fall in world plastic prices. Local plastic manufacturing companies fetched US$ 89.00 million in the just-concluded FY. It is 11.49 per cent lower than over $ 100.57 million of the previous fiscal. The export receipt also failed to fulfill the target set for the year by $ 29.00 million, according to Bangladesh Export Promotion Bureau (EPB) statistics. BPGMEA President Md. Jashim Uddin said the sector’s sales volume increased last year. But fall in plastic product prices in the foreign markets reduced the total export earning amount. He said the government introduced 10 per cent cash incentive for this sector. However, the plastic manufacturers could not enjoy the benefit because of imposing a number of terms and conditions for getting the facility. He urged the government to review the cash incentive procedures, so that the factory owners can get the facility. The BPGMEA chief told the FE that major challenges the plastic industry is now facing are power shortage, lack of skilled labour, waste management and environmental concerns. To improve the quality of products and develop skilled workforce setting up of an institution named ‘Plastic Engineering Institution’ is going on.
