Cups go green

It is a common question for everyone to ask, when taking a cup of tea or coffee with snacks at a street stall or in a restaurant, if the cups and plates are hygienic. Sometimes, we refuse to eat certain foods fearing the health hazards. Furthermore, the use of plastic cups, food boxes and plates in restaurants as well as in street food and tea stalls is a threat to the environment and the sewerage system of cities. Despite widespread criticism for the use of unhygienic plastic cups, plates and other items in serving food, it is still dominating the Bangladeshi market. Paper cups, an eco-friendly item for serving food, tea and coffee, can replace plastic cups and remove people’s concerns over health and environmental hazards as it is biodegradable and hygienic. However, the use of paper cups remains very low, as there is a lack of awareness and availability of the products. A group of innovative and tech-savvy young Small and Medium Enterprise (SME) entrepreneurs have come up with a new hope for environment lovers in this regard, with the added bonus of extensive opportunity to grow. “In line with economic growth, living standards and food habits are changing very fast. As the corporate houses are increasing in number, fast food places and restaurants are also popping up in greater numbers,” Zahid Sarkar, managing director of Go Green, a paper cup manufacturer, told the Dhaka Tribune. These positive indicators in the economy and in society have opened a new avenue for the newborn paper cup industry, said Zahid. The increase in fast food consumption and ready to eat food facilitates the use of safe and hygienic paper cups, plates and food service boxes, he added. “Business in everyday live has increased manifold and a person has to perform many tasks on the move. On a busy day, packed food and take away from restaurants play an important role in keeping people fed,” Ahsanul Islam, a private banker told the Dhaka Tribune. “However, there is a question of safe food. I think the use of paper cups and bowls can be an alternative to unhygienic plastic goods,” he said, urging processed and ready to eat food providers to make the switch to paper. According to an industry insider, Bangladesh has a demand for 120 million one-time use cups annually. The lion’s share of this demand is met by plastic cups imported from India. The market size for paper cups is at about Tk35 crore per annum, while for plastic cups it stands at about Tk240 crore. “Recently, the Food and Agriculture Organisation (FAO) in a meeting talked to us about safe food and wanted to know how to ensure it,” the source said. “As someone involved in the industry, I suggested the use of paper products to serve food and they are considering it, which would open an opportunity. But we need government policy support to grow,” he added. Regarding challenges for the sector, the industry insider said that the high import duty on paper was a major stumbling block to the business, as was the import of plastic cups from India which are sold at lower prices. Currently, paper cup manufacturers have to pay a 53% import duty, pushing the production cost up. “If the government reduces the import duty on paper, the sector will be able to provide the products at a lower rate, which will ultimately help stop the use of plastic,” the source claimed. Paper cup manufacturers have urged the government to stop the import of plastic cups or impose higher import duty on them, to protect the newborn local industries and give them the opportunity to flourish, he added. Replying to a query on whether paper cups were truly hygienic, industry sources said their products were tested and certified by SGS Bangladesh Limited. France-based SGS is the world’s leading inspection, verification, testing and certification company.What is a paper cup and why is it better than plastic?A paper cup is a disposable cup made out of paper. It is 100% hygienic, and far more eco-friendly than plastic cups. In addition, the production of paper cups generates less greenhouse gasses than plastic ones does. Paper cups decompose in water within a few days.Usage and market potentialPreviously, the use of plastic cups was mostly limited to beverages. But now, this has been extended to various food items, including ice cream, sweet corn, sweet delicacies and packaged food items. Paper cups are being widely used in coffee shops, as well as in tea stalls but on a smaller scale. It is also being used for all sorts of ready to eat products and for catering weddings and social functions. The rise in international food and coffee chains such as KFC and Gloria Jeans as well as the attraction of quality and Eco-friendly products to consumers has resulted in massive market potential for paper cups in Bangladesh.Export potentialThere is also huge potential for the export of paper cups, as people, particularly those in developed countries, are becoming more concerned about the impact of unhygienic products and plastic goods on a person’s health as well as on the environment. Nepal, the Middle East, United States and European countries could all be good export destinations due to the high quality and lower production costs of Bangladeshi paper cups. “I have already gotten work orders from the Middle Eastern countries, but cannot carry out the order due to lack of space in my factories. As such, I have decided to relocate my factories with a view to getting more space, and started the construction of a new building,” said Kazi Sazedur Rahman, owner of KPC Industry. “After completing the new establishment, I will be able to produce more for export. I think the government should consider the sector as an export oriented industry, and help it plan to diversify the products as well as to earn more money from export,” he added. Meanwhile, former advisor of the caretaker government A B Mirza Azizul Islam told the Dhaka Tribune: “Bangladesh needs more investment in creating jobs for the young generation to encash the demographic dividend.” “In attaining the GDP growth, the government should promote the SMEs, the backbone of industrialisation, by proving finabncial and techincal support,” said Islam. “As an emerging and eco-friendly industry, I think it should be considered as green and be provided with funds under the Green Financing Scheme, he added.