Production of paper in Bangladesh is moderately lesser than the average production of Asia. The utilization of paper in Bangladesh is around 5 kg for each individual on a usual. This figure is much lower than the average of Asia per capita paper consumption which is 30 kg. An increase in universities, an increase of education rate, offices, newspapers, increased pressure from the environmentalists of banning polythene packaging materials, increased social and environmental awareness –all of these indicate a worthy sign of a future increase in paper demand. In addition, the use of electronic and online media as a substitute for paper is less popular which indicates a constant positive growth in the industry demand.
Given this promising and profitable scenario, the presence of few paper mills in Bangladesh has led to increased demand for importing paper and paper-related materials. The major obstacles in entering the sector are the lack of easy availability of resources like gas, water, electricity, raw materials. As a result, the major portion of domestic demand either is filled up by imported papers or not met at all. However, the presence of the recycling industry provides a portion of the pulp, the raw material of paper, which meets some of the domestic demand in newsprint and white print paper.
The major
players in the paper and pulp industry have been set up in Dhaka and Chittagong
region. The aggregate production capacity of this industry is around 500,000 MT
to 600,000 MT per year. At present, 80 paper mills are running throughout the
country, but only Karnaphuli Paper Mills Limited has an integrated paper
and pulp production capacity of 30,000 MT per year. Other than the Karnaphuli
Paper Mill Limited, all others use imported pulp and/or recycled fiber.
However, the prospect of the industry is high but the acute crisis of energy,
raw materials and trained human resources are the major reasons for
non-utilization of maximum production capacity.
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