Plastic no doubt is one such product. Thousands of plastic units scattered all over the country with little or no safety measures for those involved in the production process and the well known threats to the environment make it extremely important for urgent action to discipline the sector.
The country's export of plastic goods is growing. However, the figures are not big enough to inspire great optimism. The fact remains that in Bangladesh, plastic plants have only recently opted for modern technology in producing various food and non-food grade products. With more technology back up, and accompanying diversification, the industry---though scattered and largely disorganised---has the potential to grow manifold if provided with the required facilities. This may open up a new vista for exporting.
It may be noted that export was far from the targeted goal of the industry even a decade back, though there were few enterprises which were exporting in small volumes. Mainly it is the local demand that motivated factories-medium, small and very small-to produce plastic products.
Annual sales of plastic products in Bangladesh are currently 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 ten years. Industry insiders, quoted in recent newspaper reports, say the sector is experiencing fresh investment to the tune of Tk 1-1.5 billion each year. The sector is said to employ around 1.2 million people directly and indirectly well over 4,500 small, medium and relatively big manufacturing units. Value addition in manufacturing is also commendably high, ranging between 50 and 70 per cent. At present, around 3,000 factories are reportedly producing plastic products in more than a dozen categories.
Use of plastic products in the country has grown manifold thanks to the improvements in recycling technology--- a key stimulus in increased production on the one hand and growing consumer preference on the other. However, a lack of desired improvement in quality and diversification in product range is commonly attributed as the main impediment to the sector's growth to a far higher level. This holds true in respect of domestic consumption but more so, when it comes to exporting.
Global market of plastic is essentially demand-driven. Price structure of plastic products is of a wide range, able to absorb immensely diversified products by the low, middle and up-end market segments.
Despite the progress of the sector reported in the media recently, concerned quarters consider this far from what it actually should be given the 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 resulting in less than expected success in accessing overseas markets.
Now, the potential and prospects of growth can only be expected to be realised once the industry is shifted to a suitable location --- a plastic hub, preferably in the outskirts of the capital. 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 made in a planned manner besides providing opportunities for the factories to operate hazard-free and attract overseas investment. Industry leaders have also been demanding a dedicated location which besides providing hazard-free production process will also help meet various compliance needs of overseas buyers. Concerned quarters feel that a plastic hub with modern recycling plant, waste management facility, 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.
In this context, it may be noted that the government's plastic and packaging policy has recommended establishment of a plastic industrial park to ensure proper infrastructure, nurture small and medium enterprises, provide uninterrupted utility services, and take steps to avoid environmental hazards and ensure compliance. It is not known if there is any move to that direction. Mere recommendation serves no purpose as setting up a plastic hub/ park with the required infrastructure and facilities will call for, in the first place, a comprehensive work-plan in consultation with the stakeholders. This can address unresolved issues. Once this is done, the authorities can plan to go ahead in phases. The relevant industry association should express its keen interest in pursuing its dream and try to make the authorities convinced of the project's merit.
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