Polypropylene makers face tough time
Sunday, 24 April 2011
Badrul Ahsan
More than 50 woven polypropylene (WPP) sack manufacturing factories are facing rough weather after the government passed legislation to popularise the use of jute, manufacturers said. With the enactment of mandatory Jute Packaging Act 2010, they said, it could snuff out livelihoods of around 40,000 people who are engaged in the polypropylene manufacturing business. Opposing the provision of mandatory use of jute bags, co-chairman of Woven Polypropylene Sack Manufacturers Association Quazi Anwarul Haque said the drive would have negative impact on the country's Tk 15-billion woven sack manufacturing industry. Terming the polypropylene sacks 'recyclable, environment friendly, cost effective and labour-intensive, he said the government should review the mandatory jute packaging law for the greater interest of employment and investments in the WPP sector. Par liament passed the 'Mandatory Jute Packaging Act 2010,' last year, making the use of jute bags for packing food stuff, agriculture produces and cement legally binding. The law aims to promote the use of eco-friendly jute bags. According to the law, manufacturers will be required to use packaging materials made of at least 75 per cent jute fibers. The WPP sack manufacturers association also expressed their deep concern over the move as it could derail the prospect of exports of sack. The association leaders said that an export bonanza awaited Bangladesh after the European Union (EU) and the USA slapped anti-dumping taxes on the item manufactured by Chinese, Thai and Vietnamese exporters. "Some companies have started exporting WPP sacks and export income has already reached Tk.100 million with the prospect of reaching Tk. 7.0 billion in a short time," Mr. Haque said. Germany, France, UK, USA, and some African countries are the main importers of Bangladeshi WPP sacks. President of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) Shahedul Islam Helal said price would be a major factor as synthetic bags are cheaper than gunny bags. He feared that the use of jute bags may contribute to the escalation of prices of essentials. President of Bangladesh Cement Manufacturers Association (BCMA) Mustafa Kamal said jute packages are not suitable for preserving cement for long, making its storage difficult. In addition, he said, huge dust might come out at the time of loading and unloading of cement, which will be harmful for public health and environment. President of Bangladesh Agro-based Product Producers & Merchants Association (BAPPMA) M. Ruhul Amin also disagreed with the provision of mandatory use of jute bags, saying the legal obligation could push up prices of the poultry and livestock's feed materials. BAPPMA leaders said that the mandatory use of jute bags might raise the cost of per bag agri. product by Tk 70-80 taka, because a jute bag costs Tk 100-110, while its plastic alternative costs only Tk 18-20. First vice-president of the Federation of the Bangladesh Chambers of Commerce and Industry (FBCCI) Jashim Uddin said that implementation of the act will depend on availability of jute bags, price difference between jute and synthetic bags, and technical problems in using jute bags for different items.
More than 50 woven polypropylene (WPP) sack manufacturing factories are facing rough weather after the government passed legislation to popularise the use of jute, manufacturers said. With the enactment of mandatory Jute Packaging Act 2010, they said, it could snuff out livelihoods of around 40,000 people who are engaged in the polypropylene manufacturing business. Opposing the provision of mandatory use of jute bags, co-chairman of Woven Polypropylene Sack Manufacturers Association Quazi Anwarul Haque said the drive would have negative impact on the country's Tk 15-billion woven sack manufacturing industry. Terming the polypropylene sacks 'recyclable, environment friendly, cost effective and labour-intensive, he said the government should review the mandatory jute packaging law for the greater interest of employment and investments in the WPP sector. Par liament passed the 'Mandatory Jute Packaging Act 2010,' last year, making the use of jute bags for packing food stuff, agriculture produces and cement legally binding. The law aims to promote the use of eco-friendly jute bags. According to the law, manufacturers will be required to use packaging materials made of at least 75 per cent jute fibers. The WPP sack manufacturers association also expressed their deep concern over the move as it could derail the prospect of exports of sack. The association leaders said that an export bonanza awaited Bangladesh after the European Union (EU) and the USA slapped anti-dumping taxes on the item manufactured by Chinese, Thai and Vietnamese exporters. "Some companies have started exporting WPP sacks and export income has already reached Tk.100 million with the prospect of reaching Tk. 7.0 billion in a short time," Mr. Haque said. Germany, France, UK, USA, and some African countries are the main importers of Bangladeshi WPP sacks. President of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) Shahedul Islam Helal said price would be a major factor as synthetic bags are cheaper than gunny bags. He feared that the use of jute bags may contribute to the escalation of prices of essentials. President of Bangladesh Cement Manufacturers Association (BCMA) Mustafa Kamal said jute packages are not suitable for preserving cement for long, making its storage difficult. In addition, he said, huge dust might come out at the time of loading and unloading of cement, which will be harmful for public health and environment. President of Bangladesh Agro-based Product Producers & Merchants Association (BAPPMA) M. Ruhul Amin also disagreed with the provision of mandatory use of jute bags, saying the legal obligation could push up prices of the poultry and livestock's feed materials. BAPPMA leaders said that the mandatory use of jute bags might raise the cost of per bag agri. product by Tk 70-80 taka, because a jute bag costs Tk 100-110, while its plastic alternative costs only Tk 18-20. First vice-president of the Federation of the Bangladesh Chambers of Commerce and Industry (FBCCI) Jashim Uddin said that implementation of the act will depend on availability of jute bags, price difference between jute and synthetic bags, and technical problems in using jute bags for different items.