Al Amin :
Unethical imports of baby diapers, essential consuming goods, through under-invoicing are destabilizing and creating uneven price competition in the local markets, alleged domestic producers.
They said most of the diapers of global brands are being imported illegally through grey channel for evading taxes and duties during import.
The domestic producers further alleged without following any proper pricing and local guidelines, the importers are selling the consuming items at different discounted price across the country.
It is also creating uneven price competition among retailers, which eventually puts pressure on local manufacturers who are 100 per cent tax and duty paying companies, they added.
This also hurts massively the local manufacturers, and consumers lose affordability of purchasing diapers.The market size of the consuming goods is over Tk 3,500 Million with 15 per cent growth rate. Of this, pant diaper is growing at 25 per cent rate, while belt diaper is decreasing at five percent rate.
The locally made products occupy 70 per cent market shares which was 30 per cent in 2014, and over 30 existing brands substantially are contributing toward the betterment of the country’s economy, the sector insiders said.
The market has got a boost from an increase in the number of women participating in economic activities, particularly in the formal sector, and rising purchasing capacity of the country’s people.
However, according to survey, only six to seven percent household penetration still implies on it.
Taking advantage of it, the domestic manufacturers are offering lucrative deals as the consumption of baby diapers continue to steadily grow across the country.
Twinkle of ACI, Chu Chu, Huggies, Pampers, Supermom, MamyPoko, Bashundhara, Neocare and Thai are the most reputed producing brands in the country.
The local manufacturers are gradually gaining a foothold in the growing baby diaper market for low prices and high quality, despite competition with numerous imported brands.
“Country has become se-reliance in producing baby diapers and opportunities export to other countries. So, the sector needs government’s policy support at the moment,” Md Quamrul Hassan, Business Director of ACI Consumer Brands, told The New Nation.
“Some unscrupulous traders are importing diapers of global brands unethically and are destabilizing the markets. This should be stopped,” he said.
“Our market share will rise further if the government takes steps to stop under-invoicing during import,” said Md Mustafizur Rahman, Convener of Bangladesh Hygiene Products and Manufacturers Association (BHPMA).
The government has cut import duty on some raw materials, but still there are some raw materials where the import duty remains high, he said.
“We are running below our capacity. If the government plugs the loopholes in imports and reduces import duty of all raw materials, it will help us achieve self reliance in the diaper market,” Rahman added.
