Bangladesh's export of paper and paper products have risen 123.35 per cent year-on-year in the first half of the current fiscal year thanks to the post-pandemic recovery and manufacturers' focus on finding new export destinations.

Export receipts of the six months amounted to $95.08 million, according to the Export Promotion Bureau.

However, manufacturers and exporters say the industry can do even better with more policy support.

The US alongside countries in the Eurozone, Middle East and Africa are the major export destinations of locally produced paper and paper products, according to Bangladesh Paper Mills Association (BPMA).

China, India and some other countries were major players in the global market.

But many paper mills have been closed down, including nearly 1,200 mills in China, over pollution and environmental concerns, enabling Bangladesh to grab a bigger share, said AKM Nawsherul Alam, secretary to the BPMA.

Buyers are always on the lookout for good quality products at low prices and Bangladesh has been doing well in its manufacture of paper, tissue, toilet paper, facial tissue, napkin and diaper, he said.

Industry insiders said the exports began rising fast after the government offered a 10 per cent cash incentive on receipts in 2016.

Bangladesh has more than 100 mills with a combined annual production capacity of more than 15 lakh tonnes of products.

Bashundhara, which pioneered paper mills among the private sector here, is the biggest exporter out of more than 20 mills that export writing paper, facial tissue, toilet paper and packaging materials to about 40 countries, according to industry insiders.

Bangladesh is doing very well in the competitive international market because of its lower prices, said Abdul Matin Khan, managing director of Lipy Paper Mills.

The opportunity is there to do much better if more policy support is made available, he said.

Prices need to be more competitive, especially for the US and Eurozone markets, said an official of an exporting company requesting anonymity.

One concern is a rise in the price of pulp stemming from low supplies. Bangladesh has to import some 90 per cent of the pulp it uses and at times it is not readily available, he said.

Now each tonne costs $1,000 whereas six months ago it was around $450 to $500, said the official.

"That is why production is being hampered. Apart from this, there is a shortage of dollars," he added.

The government also needs to prevent the misuse of bonded warehouse facility by a section of businesspeople so that competitiveness is not lost in the local market, said the BPMA.

Moreover, product prices are set to increase for a technical evaluation committee of Bangladesh Energy Regulatory Commission recommending raising power prices by 15.43 per cent on January 8, it said.