Export earnings from PET bottle flakes may rise

Export earnings from Polyethylene Terephthalate (PET) waste bottle flakes in the country may increase three fold in a year with the necessary policy support and patronisation from the government, a top industry leader said on Saturday. Bangladesh Pet Flakes Manufacturers and Exporters Association (BPFMEA) president Sarwar Wadud Chowdhury said there is a large potential for PET bottle flakes in the oversea markets, predominantly used to produce polyester yarn and other items. However, due to the shortage of raw materials, the market is proving difficult to grab. He said the sector is fully dependent on the local plastic PET bottles in the waste. These are frequently seen collected by poor women, young children, and urchins. Nevertheless, an adequate supply of the materials does not exist to meet global demands. According to the BPFMEA, the locally produced pet flakes are 100 per cent export-oriented as there are no domestic factories for its utilisation. "If the government allows importing used PET waste, the export volume of PET bottle flakes will stand at 100,000 tonnes by 2012, which presently only 30,000 tonnes, worth nearly Tk 1.00 billion," the BPFMEA president said. Around 90 per cent of the PET flakes are exported to China. South Korea, Taiwan, Thailand, and Vietnam also import the product. He mentioned that the export volume of the product was only 6,000 tonnes in 2001. Presently the sector is growing at a rate of 20 per cent per year. Additionally, he said the country has bright prospects to earn substantial foreign currency like Indonesia through the PET waste. But the government considers the garbage as harmful and thus pollutant for the environment. The sector's insiders have reported that they are protecting the environment while collecting the PET waste bottles, all in conjunction with boosting the country's economy. However, they lack the necessary support from the government to take the efforts further. "We want to ensure the government that it (the PET waste) will not pollute the environment and only be used as raw materials," said Mr Chowdhury. Nearly 2,000 to 3,000 small and large PET waste producing factories exist in the country, involving nearly 1.0 million people. In order to boost the sector, the government has been urged to first allow importing the PET waste bottles, reduce the Advance Income Tax (AIT) on export from 0.50 to 0.25 per cent, and increase the cash incentive from 10 to 20 per cent. The industry insiders also called for withdrawing the VAT on the utility bill and vessel fare of exported goods. "If the government approves such facilities, the industry can become a major sector in the economy, just like the Ready Made Garments (RMG) in the country," the BPFMEA president concluded.