Packaging makers seek export incentives to stay competitive

Manufacturers of packaging and garment accessories have urged the government to introduce cash incentives for both direct and deemed exports, saying the support is essential to safeguard the sector and maintain its competitiveness in global markets.
The Bangladesh Packaging and Accessories Manufacturers and Exporters Association (BPAMEA) has submitted a proposal to the finance ministry seeking the incentive, arguing that despite being a key backward linkage industry for the country's export sector, the packaging and accessories industry has so far been excluded from such benefits, sources said.
Currently, the government provides cash incentives to various export-oriented industries to enhance their competitiveness.
A finance ministry official confirmed receipt of the proposal, saying it is currently under review.
BPAMEA claimed the sector is one of the largest contributors to Bangladesh's export economy after the readymade garment (RMG) industry, supplying packaging and accessories to a wide range of export-oriented sectors.
According to the association, the industry has been facing mounting challenges, including rising raw material prices in international markets, high lending rates, liquidity constraints, power shortages, low gas pressure and export order cancellations.
It noted that the government has recognised the sector as a "Product of the Year" in view of its growth potential.
The association estimates that the industry generates around $7.24 billion in direct and indirect export earnings and provides employment to nearly 700,000 people.
Contacted, a BPAMEA leader said, "We have submitted a proposal seeking cash incentives for packaging and accessories products to support the sector and help unlock its growth potential."
The association has around 2,100 member companies, producing almost all types of packaging materials and garment accessories used by export-oriented industries, including readymade garments, pharmaceuticals, ceramics, leather goods, jute products, frozen foods, footwear, fruits and vegetables, and handicrafts.
BPAMEA said cash incentives on export proceeds would help lower production costs, strengthen the sector's resilience and enable manufacturers to compete more effectively in international markets.

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