If the import duty on raw materials is not reduced, the production cost will increase and foreign plastic products will capture the local market, said Jasim Uddin, president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA).

He said the government should fix the import duty on raw materials at 7.5 percent instead of 15 percent, which was proposed in the budget for FY 2004-05.

The BPGMEA leader also urged the government to impose a 75 percent supplementary duty on finished plastic items.

He pointed out that plastic products of India, China and other countries have already flooded the local market pushing the local industry on the verge of ruination.

At present, there are about 3,000 industrial units in Bangladesh that produce plastic goods. Of these, 30 are engaged in direct export, 300 in indirect export and the rest serve the domestic market of Tk 800 crore a year, industry sources said.

Last year exporters fetched Tk 100 crore from direct export and another Tk 500 crore from indirect export of plastic goods, the manufacturers said.