Use of plastic products in the country has grown manifold, thanks to the dynamic improvement in recycling technology -- a key stimulus to increased production on the one hand and growing consumer preference on the other. However, lack of upgradation in quality and diversification of product range is commonly attributed as the main impediment to the sector's growth to a far higher level. This holds true to domestic consumption and only more so to the product's export.
Global market of plastic is still essentially demand-driven due to the ever-increasing use of the product. Price structure of plastic products is highly wide-ranging, able to absorb immensely diversified products by the low, middle and up-end market segments. There is also a huge prospect for the sector as domestic needs are on the increase. Annual sales of plastic products in Bangladesh are estimated at around Tk 150 billion in the local market, in which household items account for nearly Tk 20 billion. Increase in domestic supplies reportedly grew at 15 per cent a year over the last several years. Industry insiders, quoted in recent media reports, said the sector is experiencing fresh investment to the tune of Tk 1.0-1.5 billion each year.
There are few other finer points. The country's plastic sector is said to employ around 1.2 million people directly and indirectly in well over 4,500 small, medium and large manufacturing units. Value addition in manufacturing is also commendably high, ranging between 50 and 70 per cent. Earnings from plastic exports stood at $85.70 million in fiscal 2013-14. Despite the progress reported in the media recently, concerned quarters consider these far from what they actually should have been in view of the overwhelming surge in global demand. Major improvements in infrastructure, waste management, recycling and skill development are some of the critical areas in need of urgent attention to push the growth momentum to the desired level. In addition to these basics, product development and product adaptation should be attended to as a matter of priority. This, unfortunately, is an area many of the manufacturers miss out, which results in less than expected success in accessing overseas markets.
The current export performance of plastic products, needless to say, is too limited to justify the strength of the industry in meeting a tiny fraction of overseas demands in a myriad of product segments. In respect of meeting domestic requirements too, there is a lot to be done to divert consumers from using imported plastic products. Here, it is quality upgradation that should be the key concern of the manufacturers. This newspaper, not long ago, had pointed out the need for a plastic hub in the country so that attempts for improvement of the sector could be taken up in a planned manner beside providing opportunities for the factories to operate hazard-free and also attract overseas investment. Concerned quarters are of the view that a plastic hub with modern recycling plants, waste management facility, properly trained workers and necessary infrastructure will be able to manufacture products at competitive prices for exports even after a reasonable raise in the present wage structure. The country's economic policy-makers do need to consider the matter with all seriousness, in view of the sector's potential that lies still largely untapped.
Higher growth momentum for plastic industry
FE Team | Published: August 30, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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