The export of paper and paper products from Bangladesh rose 85 percent year-on-year in the first two months of fiscal 2023-24 as the country is grabbing a bigger share of the global market in face of reduced competition.

Export earnings from the sector amounted to $39.79 million in the July-August period of the current fiscal year, according to data of the Export Promotion Bureau.

However, manufacturers are struggling to keep up with the heightened demand as the country's ongoing foreign currency crisis is preventing them from opening letters of credit for raw materials.

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

China, India and Japan were among major suppliers in the sector but many of their paper mills have shut down over environmental concerns, enabling Bangladesh to grab a bigger share, said BPMA Secretary Nawsherul Alam.

"Buyers are always looking for high-quality products at affordable prices, and Bangladesh has done well in the varieties of paper products," he added.

Export-oriented paper products include toilet paper, napkins, diapers and so on.

Industry insiders say shipments started increasing rapidly after the government gave a 10 percent cash incentive on export receipts from the sector in 2016.

Bangladesh has around 100 paper mills with a combined annual output of more than 15 lakh tonnes.

Of them, some groups of industries are largely contributing to the sector with new varieties of products.

Bashundhara, a local pioneer in the industry, is the biggest exporter among 20 mills that ship writing paper, facial tissue, toilet paper and packaging materials to about 40 countries.

Abdul Jabbar Khan, managing director of Asia Paper Mills Ltd, said Bangladesh is capitalising on the supply dearth created by reduced production at other sourcing destinations such as Japan and China.

Besides, private manufacturers in the country are dominating the overall sector as the government has failed to adopt modern technologies to make high-quality paper and paper products, he added.

MM Nurun Nabi, executive director of Partex Paper Mills Ltd, said Bangladesh is doing very well in the competitive international market for various paper products.

"But the production of writing paper is still being stalled due to difficulties in getting raw materials, such as pulps, amid the supply crunch for the US greenback," he added.

Echoing the same, Mohammad Sharafath Ali, deputy general manager of sales and marketing of Amber Super Paper Ltd, said they have had to shut down exports ever since the pandemic period.

"Due to struggles in opening letters of credit, we could not continue importing raw materials from Indonesia, which halted our total production and export process," he added.

The company produces writing paper, printing paper and so on.

"Everyone is facing the same problem but some major industrial groups could possibly be continuing their paper product shipments, contributing to the overall export basket," he added.