Bangladesh has secured only about US $ 5 billion in packaging product exports despite an estimated global market demand of nearly US $ 700 billion, industry leaders said on Saturday, attributing the weak performance to the absence of export incentives and inadequate policy support.
The concerns were raised at a press conference held in Dhaka on 11th January, jointly organised by ASK Trade & Exhibitions Pvt. Ltd. and the Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA).
BGAPMEA president Md Shahriar said that although global demand for packaging products was expanding rapidly, Bangladesh was failing to capture a proportionate share of the market. He said the primary reasons were the lack of export incentives for direct packaging exports and insufficient policy support for the sector.
He pointed out that Bangladesh did not provide any export incentives for direct packaging exports, unlike competing countries. According to him, China, Vietnam, Cambodia and Indonesia offered incentives ranging from 4% to 17% in the packaging sector, while Bangladeshi exporters had never been included in any such scheme, which he said had significantly undermined the industry’s competitiveness.
Md Shahriar also highlighted policy-related constraints, particularly high taxes on imported raw materials. He said that the import of paper below 300 GSM attracted duties and taxes ranging from 58% to 83% in many cases, substantially increasing production costs. He described this as a major policy bottleneck linked to the National Board of Revenue (NBR).
He further said that while the readymade garment sector benefited from extensive policy and banking support, the accessories and packaging industry was deprived of similar facilities. According to him, the sector did not receive comparable access to banking finance, customs facilities or Bangladesh Bank policy support, despite such provisions existing in principle.
Rejecting allegations that the industry was heavily import-dependent, Md Shahriar said local manufacturers were capable of producing all garment accessories and packaging products domestically. He said the sector was prepared to demonstrate its full production capacity at factory level if required.
He added that Bangladesh already possessed the necessary infrastructure, skilled workforce and factory capacity developed under the RMG sector, which could be utilised to expand direct packaging exports without the need for additional investment or manpower.
The press conference also disclosed that written proposals had been submitted to the NBR and the Ministry of Commerce, seeking export incentives, duty waivers on raw material imports and comprehensive policy support.
Industry leaders expressed optimism, noting that the government had already identified the sector as a high-potential industry. Md Shahriar said that with appropriate policy backing, the packaging sector could make a significant contribution to export earnings, employment generation and industrial diversification.
