Interim government’s push for reusable bags: What it means for your business

Bangladesh’s interim government is taking strong steps to fight plastic pollution. Since October 2024, single-use plastic bags have been banned in supermarkets. The government is promoting eco-friendly reusable bags made from jute, cotton, and other biodegradable materials. This blog will explain how the interim government’s push for reusable bags affects your business and how to adapt.

The ban on single-use plastics is part of a larger plan to protect the environment. Plastic waste, including polythene bags, has harmed Bangladesh’s rivers, soil, and food chains. Reusable bags help reduce this damage while meeting customer demands for greener options. Businesses need to plan carefully to stay compliant and keep operations smooth. Call us at 01709-634030 for details!

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Background: The plastic problem in Bangladesh

Bangladesh generates approximately 87,000 tons of single-use plastics annually, with 96% discarded as waste, clogging drains, rivers, and landfills. In urban areas, per capita plastic consumption tripled from 3 kg in 2005 to 9 kg in 2020, with Dhaka alone producing 24 kg per person.

The capital city uses 14 million plastic bags daily, contributing to 73,000 tonnes of plastic waste entering the Bay of Bengal each year via the Padma, Jamuna, and Meghna rivers. Microplastics have infiltrated fish, agricultural products, and food chains, posing severe ecological and health risks.

Historical context: The 2002 ban and its failure

In 2002, Bangladesh became one of the first countries to ban polythene bags. However, weak enforcement, lack of affordable alternatives, and industry resistance led to its failure. By 2020, plastic use had surged, and the Solid Waste Management Rules (2021) and a 2021 High Court order to phase out single-use plastics saw limited success.

The interim government of Bangladesh renewed its push, led by environment advisor Syeda Rizwana Hasan, to address these shortcomings through stricter enforcement and a focus on biodegradable alternatives.

The 2024 policy: Key details

The 2024 policy: Key details to reduce plastic wastage

The government’s goal is to reduce the 30% of plastic waste attributed to single-use grocery bags and promote reusable options, particularly jute, which aligns with Bangladesh’s $1 billion jute export industry. Here are the details:

  • October 1, 2024: Ban on polythene and polypropylene shopping bags in superstores.
  • September 5, 2024: Cabinet directive for government offices to replace single-use plastics with eco-friendly alternatives like glassware.
  • August 27, 2024: Circular identifying 17 single-use plastic products (e.g., cigarette filters, plastic bottles, straws, styrofoam packaging) for phased elimination.
  • November 1, 2024: Department of Environment (DoE) to begin seizing single-use plastic products and shutting down production facilities.
  • Legal framework: Enforcement of the Bangladesh Environment Conservation Act (2002), which allows fines and imprisonment for violators, alongside the Mandatory Jute Packaging Act (2010) promoting jute for 19 commodities.

Opportunities for businesses

The shift to reusable bags opens significant opportunities for businesses willing to adapt. Below, we explore key areas where companies can capitalize on this policy.

  • Booming demand for reusable bags
  • Market growth
  • Job creation
  • Branding opportunities
  • Actionable steps for manufacturers and retailers
  • Recycling and waste management innovation
  • Circular economy models
  • Government incentives
  • Export potential for jute products
  • Competitive advantage
  • Policy support

Challenges for businesses

While the ban offers opportunities, it also poses significant challenges, particularly for retailers, plastic manufacturers, and small vendors. Below, we outline the key hurdles and their implications.

  • Supply chain disruptions: The sudden ban has exposed critical gaps in the supply of reusable bag materials, particularly jute and cotton fabrics.
  • Fabric shortages: Producers like Surzu Handicrafts and Baeki Centre report shortages, with jute fabric prices rising from Tk 32 to Tk 38–40 per yard, increasing production costs.
  • Industry unpreparedness: Most jute manufacturers focused on export-grade fabrics, not low-cost bags, leaving them unprepared for domestic demand spikes.
  • Retail gaps: Shwapno, Bangladesh’s largest retail chain, needs 100,000 bags daily but receives only 1,000–2,000, forcing reliance on costly alternatives like paper bags for meat and fish.
  • Consumer resistance and behavior change: Despite environmental awareness, many consumers resist reusable bags due to cost and convenience.
  • Cost sensitivity: In Dhaka’s low-income markets, customers expect free bags, and Tk 40 jute bags are unaffordable compared to free plastic.
  • Habitual behavior: Retailers like Shwapno report that not all customers embrace the ban, with some refusing to bring reusable bags.
  • No alternatives for important products: Iodized salt, medicines, and liquid milk require plastic packaging to maintain quality and meet international standards, with no viable substitutes.
  • Export disruption: Plastic packaging is integral to pharmaceuticals and food exports, and a ban could undermine competitiveness.
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Strategic recommendations for businesses

To thrive in this shifting landscape, businesses must adopt proactive strategies tailored to their sector and market dynamics.

  • Invest in supply chain resilience: Partner with jute farmers and mills to ensure steady fabric supply, potentially through long-term contracts or vertical integration.
  • Diversify suppliers: Source cotton, paper, or biodegradable plastics to mitigate jute shortages and price volatility.
  • Advocate for policy support: Lobby for subsidies on jute farming and processing, as well as tax breaks for eco-friendly bag production, like PP woven and non-woven fabrics and bags.
  • Enhance consumer engagement: Offer discounts or loyalty points for customers using reusable bags, as practiced by global retailers like Tesco.
  • Affordable pricing: Subsidize bag costs initially to build adoption, especially in low-income markets, and explore bulk pricing models.
  • Collaborate with stakeholders: Form coalitions with retailers, manufacturers, and jute producers to address supply chain gaps and advocate for balanced policies.
  • NGO partnerships: Work with environmental groups to fund awareness campaigns and pilot recycling initiatives in urban areas.

The global context: Bangladesh’s ban aligns with global trends

The following examples suggest that Bangladesh can succeed with a balanced approach, combining enforcement, innovation, and stakeholder collaboration. Here are the global trends:

  1. EU: Banned single-use plastics in 2021, driving demand for jute and biodegradable packaging.
  2. India: Phased out single-use plastics by 2022, with heavy investments in jute and recycling.
  3. Japan and Singapore: Achieve near-100% plastic waste management through recycling and waste-to-energy systems.

Conclusion

Industries like retail, agriculture, and construction are switching to eco-friendly options like jute and cotton bags. This shift is a chance to show your commitment to sustainability while staying competitive. As one of the leading non-woven bag producing companies in Bangladesh, N. Biswas Group offers affordable, high-quality options to meet your packaging needs. Contact us now to explore durable, eco-friendly bags for your business.

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Frequently asked questions about reusable bags

The ban impacts businesses in retail, agriculture, and more. You must switch to reusable bags to comply with laws, which may increase costs but attract eco-conscious customers.

Reusable bags reduce plastic waste that harms rivers, soil, and food chains. They are eco-friendly, biodegradable, and can be used multiple times, supporting Bangladesh’s green goals.

Yes, reusable bags cost more, ranging from Tk 6 to Tk 29, compared to Tk 1.5 for plastic bags. Higher costs can challenge businesses.

Challenges include higher costs, a limited supply of jute or cotton bags, and customer resistance to paying for bags. Finding reliable suppliers can help overcome these issues.

Using reusable bags shows your commitment to sustainability, attracts eco-friendly customers, and aligns with laws. It can boost your brand and reduce long-term waste costs.

There’s a shortage of jute and cotton bags, with producers struggling to meet demand. Partnering with suppliers early can ensure your business has enough stock.

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