Export earnings from plastic products dropped by about 16 per cent in the just-concluded fiscal year mainly due to high prices of raw materials, sector insiders said.
The sector earned US$ 98.48 million in the FY 2017-18 while the figure was US$ 116.95 million in the FY 2016-17, according to the Export Promotion Bureau (EPB) data.
Earnings from every segment of plastic products declined in the last fiscal year than that of previous fiscal, the data showed.
The official data also showed that export earnings from PVC bags declined by 3.88 per cent, plastic waste by 55.86 per cent and other products by 0.34 per cent.
The prices of raw materials increased in the international market. So, many companies failed to import necessary raw materials that led to lower production, exporters said.
Apart from plastic finished products, export of plastic pet bottle waste declined drastically in the last fiscal year following restrictions imposed by China.
It put a negative impact on the overall export earnings of plastic goods, they said.
The prices of raw materials remained high in the international market since one year, said K M Iqbal Hossain, vice president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA).
Prices of plastic raw materials have increased by US$ 200 to US$ 300 per tonne in the international market.
So, export earnings from the sector decreased notably, he said, adding that plastic makers use nearly 25 categories of raw materials.
After slapping a ban on plastic waste by China, export of plastic pet bottle waste declined sharply, the BPGMEA leader said.
Earnings from the plastic waste sector were US$ 13.53 in the FY 2017-18 while it was US$ 30.65 in the FY 2016-17, the EPB data showed.
Bangladesh exported 99 per cent of its PET waste flakes to China before imposing restrictions, sector insiders said.
The Chinese government announced a ban on imports of 24 categories of solid waste, including certain types of plastics, paper and textiles in July 2017 which came into force from January 01, 2018.
Bangladesh exports more than 50,000 tonnes of PET bottle flakes worth $ 25 million a year, pet flakes manufacturers said.
Bangladesh exports its plastic goods mainly to Poland, China, the UK, Belgium, France, Germany, the USA, Canada, Spain, India, Nepal, Bhutan, Australia, Sri Lanka, Japan, Malaysia, the UAE, Hong Kong, Bahrain, Italy, New Zealand and the Netherlands.
Major exportable items include shopping bags, garbage bags, butcher bags, oven sacks, industrial films, PVC pipes, bags, polythene sheets, plastic hangers, hand gloves, ropes, plastic waste, v. belts, toys, electric switches, polyester threads, computer accessories, video/audio cassettes, melamine tableware, toothbrushes, ballpoints, artificial flowers, and wall clocks.
Besides, about 20 to 21 types of plastic products are exported as garment accessories.
At present, as many as 5,000 plastic goods manufacturing units are running in the country.
