30pc cash incentive for paper industry sought

Leaders of Bangladesh Paper Mills Association (BPMA) on Sunday made the demand at a virtual meeting with the commerce ministry on the incentive for the export-oriented sector.

Additional secretary (export) of the commerce ministry Md Obaidul Azam presided over the meeting.Representatives from Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Building Initiative Leading Development (BUILD), Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), Bangladesh Cement Manufacturers Association (BCMA), Bangladesh Live and Chilled Food Exporters Association also took part in the meeting.

BPMA leaders said if they get more cash incentive, the potential sector will fetch around $10 million foreign currency every month by exporting paper items.

The country is earning $3 million by export of 30 paper items on average every month, they said while seeking the cash incentive for the sector which is now enjoying 10 percent cash incentive.

Taking cognizance of paper millers’ proposal, the commerce ministry has directed the Tariff Commission to assess the proposal and submit their opinion in this regard, meeting sources said.

Country’s 106 paper mills have the capacity to produce over 15 lakh tonnes of paper and paper products while the local demand hovers around 6 lakh tonnes.

“If cash incentive increases to 30 percent from existing 10 percent, paper millers can utilise their potential to boost export of paper items,” a BPMA leader said. It may be mentioned that paper mills of the country depend on imported raw material where paper mill owners have invested around Tk 70,000 crore.

Paper industry is one of the sectors hit hard by the corona crisis. There is no alternative to increasing export competitiveness of paper industries as local demand for paper is very now.

Paper mill owners fear that the paper industry of the country will become sick soon unless the government provides policy support for the burgeoning sector.