Export of plastic products witnesses nearly 18% growth during July-April of FY24

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

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.

Talking to BSS, 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 export growth of this sector.

"The local manufacturers are now making world-class plastic items. This is encouraging the foreigners to buy plastic items from Bangladesh. Newer markets are being created 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 entrepreneurs in this sector are currently facing challenges in effectively marketing their products abroad.

"If the local market for plastic items can be effectively tapped abroad, it could potentially double export earnings from this sector," he added.

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

Citing that the corporate tax rate alongside the other taxes in plastic sector are 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, 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 $170.6 million. 

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

The global market size of plastic products is worth $600 billion.