Plastic industry hit the most by Indian import curb thru land ports: BPGMEA president

Bangladesh's plastic industry has been the most affected by the recently imposed Indian restrictions on imports of Bangladeshi goods through their land ports, according to Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA).

"India, especially the northeastern states known as the "Seven Sisters" was a key export destination for our plastic products. Transportation costs to that region were relatively low. But India's sudden decision to restrict imports has hit our plastic industry the hardest," he told reporters at a press briefing today.

The briefing was held ahead of a two-day plastic toy exhibition scheduled to begin this week on Thursday at the InterContinental Hotel in Dhaka. The exhibition is being jointly organised by BPGMEA and the Ministry of Commerce's "Export Competitiveness for Jobs" project.

India, on Saturday, issued a notification from its Directorate General of Foreign Trade under the Ministry of Commerce, restricting the import of at least seven categories of Bangladeshi goods, including readymade garments, finished plastic and PVC goods, through its land ports – just a month after Bangladesh banned yarn imports via the same route.

The notification stipulated that garments, along with certain other products, from Bangladesh may now only enter India through Kolkata and Nhava Sheva, Mumbai, seaports.

At the briefing, in response to a question about export disruptions to India, Shamim explained that sending goods to the Seven Sisters region via Indian domestic routes is costly. He was referring to the routes used internally by India for transport of goods from Kolkata or Mumbai sea ports. 

"Direct export from Bangladesh to that region was more economical. But if we are now forced to use indirect routes, exports may no longer be profitable," he said.

He also noted that there are no export issues with Nepal and Bhutan, but when asked, he did not specify the volume of plastic exports to the Seven Sisters region.

However, he added that the industry would comply with whatever decision the commerce ministry makes regarding exports to India.

Upcoming plastic toy exhibition

During the briefing, BPGMEA President Shamim described the exhibition as a crucial sourcing platform for professional buyers and decision-makers in the toy industry. 

It will also serve as a space for networking and exchanging relevant information among participants, he said.

Noting that toy manufacturing is a rapidly growing sub-sector of Bangladesh's plastic industry, Shamim said, "Currently, there are 147 toy factories across the country, primarily located in Kamrangirchar, Lalbagh, Islambagh, Chawkbazar, Gazipur, Keraniganj, Old Dhaka, and areas around EPZs and economic zones.

"These factories meet around 80% of domestic demand, with the remaining 20% met through imports from China, South Korea, and Thailand. The toy sector has already seen investments of Tk4,500 crore, which is expected to double by 2030."

He further said, "The sector currently employs around 20,000 people, 80% of whom are women. Our toy exports now earn $36 million annually, but this could be scaled up to $1 billion within the next five years."

"If the current annual growth rate of 24% continues, Bangladesh's earnings from toy export could reach $466.31 million by 2030 and become the world's 28th largest toy exporter.

Commerce Secretary Mahbubur Rahman will inaugurate the exhibition, which will also be attended by local and international guests, FBCCI leaders, industrialists, businesspeople, and representatives from various chambers and associations.

Global market, challenges, opportunities

Bangladesh currently exports toys to India's Seven Sisters, Nepal, Bhutan, the United States, Japan, Singapore, Spain, Italy, France, and other developed markets in Europe. There is also potential to enter Latin American, Middle Eastern, and African markets in the future.

However, globally, China remains the dominant player in the toy industry, exporting both raw materials and finished products. Although Bangladeshi toys are of good quality, they still lag behind China, Taiwan, and Vietnam in terms of technology, posing a significant challenge.

According to industry stakeholders, for Bangladesh's toy sector to thrive, the government must reduce import duties on raw materials, facilitate technology transfer, ensure skills development, establish compliant factories, and provide policy support similar to that enjoyed by the garment sector.

More than 1,000 types of toys are now produced in Bangladesh, including educational toys, animal figures, pedal cars, tricycles, remote-controlled vehicles, electric dolls, plastic swings, and wall toys. New additions include toy keyboards, guitars, drums, mini cars, and models of weapons and ammunition.

Entrepreneurs emphasised that the toy industry needs easy‑term loans, better infrastructure, and strict enforcement of effective policies if it is to meet international compliance requirements.

They also noted that demand for plastic will keep rising in petrochemical, cycling, automobile, and electronics manufacturing, widening the industry's future prospects.

Despite the rapid growth, stakeholders emphasised that the toy industry still lacks the kind of government support and incentives available to the garments sector. Long-term policy and strategic assistance are essential for sustainable growth, they added.