Bangladesh’s paper industry is thriving, with exports of paper and paper products hitting a five-year high in the July-November period.

This surge, driven by improved product quality and competitive prices, stands in stark contrast to the broader slowdown in export earnings.

Data from the Export Promotion Bureau (EPB) shows exports reaching $110 million, a 51% increase year-on-year. Notably, this growth comes during a period of sluggish overall export receipts, highlighting the paper industry’s resilience.

The Middle East and Africa are the primary destinations for these exports, with smaller quantities reaching Europe and the US. Manufacturers attribute the success to higher profit margins for exports and recent improvements in product quality. A 10% government cash incentive on export earnings further sweetens the deal for exporters.

However, challenges remain. Local demand is facing pressure as some smaller mills struggle to import raw materials due to a US dollar shortage. This has forced temporary production halts for around 10-12 mills.

Despite these hurdles, industry leaders remain optimistic. Bashundhara Paper Mills, a major exporter to 52 countries, highlights the growing demand for specific paper products like tissue paper and industrial packing paper. They see a future dominated by single-use disposable or recyclable paper products and are adapting their machinery accordingly.

Nitol Curtis Paper Mills, another major player, reports steady sales growth both domestically and internationally. Unlike some smaller mills, they haven’t faced difficulties importing raw materials due to strong bank relationships. They acknowledge the broader market recovery post-pandemic, but note the LC challenges faced by some due to the dollar crisis.