Commerce minister promises cash incentives for plastic makers

Commerce minister Tipu Munshi on Sunday said the plastic sector can help the country a lot in achieving the $60 billion export target by 2021.

"Only a few sectors cannot achieve the target. For that, the plastic sector can be a vital one if necessary support is given," said Mr Munshi.

He also said the sector has contributed in zeroing the import of various accessories required in the garments sector.

He said that the sector is also important in terms of employment generation. This sector has provided overall jobs for 1.2 million people with 0.7 million direct employments.

Mr Munshi assured the businesses of resolving the complications centring a separate industrial park at Keraniganj within one week.

He was addressing the closing ceremony of the 14th plastic, packaging and printing industrial fair as the chief guest at a city hotel.

The four-day fair was held on January 17-20 at Bashundhara Convention Centre in the city.

He said plastic now ranks the 12th in the country's export list, which soon can become the 10th as the growth potential indicates.

Narrating his own experience as a garment entrepreneur, the minister said earlier, apparel accessories such as polybag, hanger and carton were 100 per cent imported.

The plastic sector has made the import zero by setting up backward linkage industries, saving billions of foreign currency, he added.

He suggested proper collection of plastic waste to prevent damage to the environment.

"We will try to solve all the problems of the plastic sector to boost it. We will also support selecting CIPs from this sector and help provide cash incentives," he said.

The minister assured all of reviewing the Mandatory Jute Packaging Act 2010 and the overall packaging act.

President of the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) Jashim Uddin said the Bangladesh Economic Zones Authority (BEZA) took advance payment of Tk 1.80 billion against the total cost of Tk 2.60 billion for the special economic zone at Keraniganj.

But later the authority said it was designated for the IT sector.

Then they gave it to another company, which has now refused to take.

"We want your (minister) support for getting the SEZ at Keraniganj to relocate the small and medium plastic factories from the old town," he said. "Big factories can set up compliant factories anywhere."

He also said that the BPGMEA has been working on the Roadmap 2030.

"We want an inter-ministerial meeting to share our problems," he said.

The environment department gives the plastic industry orange colour certificate, although this does not pollute the environment, he added.

If business of pharmaceutical, agriculture, garments and other industries increases, the consumption will rise and the plastic sector business will also boom, said Jashim Uddin.

"Considering the growth of plastic consumption and the changed nature of production, the sector must be brought under rules and regulations," he said.

Managing director of Luna Plastic Ltd and special guest ASM Kamal Uddin said that plastic sector has been producing wood alternative furniture and commodities saving forest and natural resources.

About 85 per cent plastic waste is recycled, he said, adding the sector is growing at 10-15 per cent rate annually.

Referring to the announcement of reducing interest rate of bank loans, he said it is still not implemented.

"We lag behind our competitors who get bank loans at lower interest rate," he said.

Expressing concern over growing defaulted loans, Mr Kamal said, "We want the government to bring the defaulters to book and help the economy by saving the banks."

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