Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 156 Fri. October 29, 2004  
   
Business


Melamine carves niche in international market


Bangladesh's melamine industry has carved a niche in the international market, having started its journey only 15 years ago, alongside feeding domestic tableware market.

The country went into melamine production in 1989 when Nasir Group's Bangladesh Melamine ventured into the business. The industry got major boost in the following year with Sharif Melamine coming in a big way.

Inspired by rising domestic and international demand, 13 other companies joined the melamine bandwagon, creating a Tk 120 crore domestic market.

Industry insiders say use of high-tech machine and quality melamine resin and adoption of latest design have given Bangladeshi melamine tableware a competitive edge on regional and international markets.

Bangladesh's products are very popular in India especially in eastern states. However, 34 percent duty and other non-tariff barriers prevent local producers from grabbing major Indian melamine market, industry people said.

However, blessed with duty-free access, Bangladeshi melamine items have a big market in Bhutan. Sharif Melamine, which pioneered export in 1993, exported goods worth $3.5 lakh last fiscal year.

Diamond Melamine, established only last year, exported goods valued at $52,000 and Crown Melamine goods worth $50,000 last fiscal year.

Beside India and Bhutan, Norway, US, Canada and Australia are the major destinations of Bangladesh's melamine products.

Equipped with over 200 latest machines, local companies produce 12 lakh pieces of items in about 60 categories a month. Industry sources, however, say the sector with Tk 100 crore investment is seeing moderate growth due to slow export growth.

Industry people said Bangladesh is the second most quality producer of melamine items after Thailand in the world market. Bangladeshi producers use genuine melamine molding powder from Taiwan, ensuring perfect finishing.

The government has failed to persuade Indian government to include melamine on the duty-free product list of 39 items for Indian market, industry sources said. Let alone zero- duty facility, if India only rationalises present duty structure Bangladesh's melamine goods will grab a huge market there, the source added.

"Melamine industry can be a major manufacturing sector if the export potential can fully be explored. Bangladeshi melamine products have earned reputation in the world market. The industry now needs government support to remove export roadblocks," Md Nazim Uddin, export manager of Diamond Melamine, said.