PVC bag exports grow 7.71% in Oct on increased demand
In July-October, the exports were worth $7.96 million against the yearly target of $26.50 million
Exports of PVC bags, made with plastic materials, have grown 7.71% in the July-October period of the current fiscal year, riding on increased demands in the international market following the reopening of economies.
During the period, the industry has been able to export $7.96 million against the yearly target of $26.50 million.
The industry manufacturers produce different types of bags including PP woven bags, jumbo bags, bulk container bags, shopping bags, tarpaulin bags which are used for packaging cement, poultry and aqua feed, food grain, and seed. They export these bags to European and Asian countries.
PVC bags manufacturers said the industry was affected hugely by the pandemic. The export decreased for most companies by more than 50%. Some of them halted operations as they lost buyers, they added.
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Besides, last year the prices of raw materials and the shipping cost increased by more than 50% compared to the normal times, they said.
After the second wave of the pandemic, the world economy has reopened and the demand for the industry products has increased manifold.
As a result, manufacturers got more buy orders which increased by 15 to 20% on average.
Engineer Shakhawat Hossain, general manager and head of the plant of Deshbandhu Polymer Limited, said, "We produce PP woven bags and export these to different countries. But the export was affected seriously amid the pandemic."
"Now the world economy has reopened after the second wave of the Covid-19 pandemic. We mainly produce jumbo bags that are hugely used in infrastructure and construction business," he added.
As a result, the company's products export increased more than 30% during the period, he further added.
Tapan Kumar Sarker, company secretary of Khan Brothers PP Woven Bag Industries Ltd, said their business was seriously affected by the pandemic as it stopped receiving orders from foreign buyers.
The company's management has been trying to continue partial operations to supply to local businesses. Local spinning mills use PP woven bags to package cotton goods.
The company has receivables from some buyers but these have got stuck due to the pandemic.
Razib Kumar Saha, general manager (sales) of Dada Group, said their business dropped more than 50% as the Covid-19 pandemic hugely affected the sector.
He said, "Our export has increased by 10 to 15% after reopening the economy. But the business situation is recovering slowly due to the prices hike of raw materials and shipping costs."
Shamim Ahmed, president of Bangladesh Plastic Good Manufacturers and Exporters Association, said the plastic products exports have been growing since the reopening of business.
"But it has become challenging to increase quickly due to price hike of raw materials and shipping costs," he added.
Market insiders said the overall investment in this sector is approximately Tk3,000 crore. Around 100 firms are involved in this sector. Currently, the sector is growing at 20% yearly.
