Dollar crisis halts paper raw materials import, hits printing industry hard

The paper mill owners are not being able to import raw materials due to the dollar crisis since the Russia-Ukraine war began, which has caused a severe crisis and rising prices of paper, a crucial item for industries including publication, newspaper and education.

As a result, the distribution of free textbooks among all primary and secondary students on the first day of the forthcoming year has become uncertain. On one hand, publishers are not able to publish sufficient books while buyers will have to pay three-times the price for education material including books and notes.

The daily newspaper industry, which has been in crisis since the Covid-19 pandemic, is also counting losses due to the soaring paper prices. Uncertainty is also looming over the upcoming Ekushey book fair as publishers are lagging behind in publishing the usual number of books.   

According to the Printing Industries Association of Bangladesh (PIAB), the printing and publishing industry is at the core of books, garment accessories, medicine, and food accessories and other businesses.

Of the total, 2,500 printing presses are there for books, 2,000 for garment accessories, 500 for food services and the rest are engaged in serving several businesses.

Textbook Printing and Marketing Association sources said the country needs about 8 lakh tonnes of papers every year. The native mills companies produce the maximum portion of the yearly demand while some papers are imported from different countries. However, the raw materials needed for producing papers must be imported.

Uncertain about when the crisis will dissolve, the mill owners said only government initiative can bring a solution.

Tofayel Khan, president of Textbook Printing and Marketing Association, told The Business Standard that there is a crisis of raw materials including pulp for producing papers and as a result mills are not able to produce sufficient papers resulting in prices to increase. 

"We cannot import the papers and the mill owners cannot import raw materials. So, how will the problems be resolved?" he asked.

"The government should allow us to import duty free papers and to open LC to bring raw materials," he added.

Printers had never imagined they would face such a crisis, said PIAB president Shahid Serniabat.

"The banks are not opening LCs. Per tonne paper for the daily newspapers was Tk60,000 even one month ago. Now the price is at Tk90, 000," Monirul Islam Mamun, a leader of Bangladesh Paper Merchants Association (BPMA), said, adding that they are not getting paper even after paying in advance.

Abul Hashed Milki, marketing manager of Al-Noor Paper Mills, told TBS that their production has declined to almost half due to the crisis of raw materials. At the same time, the prices of other materials for production available in the country have also increased.

"Actually, the overall crisis is deepening day by day. Prices of all kinds of education materials will soar which in effect will badly impact education," he added.

Education Minister Dr Dipu Moni told TBS that they are looking for a way to import papers and also raw materials to resolve the paper crisis.

The printers said, the white print papers are being sold at Tk1.30 lakh per tonne and newsprint paper at Tk75,000 which was Tk90,000 and Tk60,000 respectively six months ago.

Papers crisis hit co-curricular books

Bangladesh Pushtak Prokashok Bikreta Samity and PIAB sources said they printed and sold at least 40 crore copies of co-curricular books around the year. Their printing process usually ends in December every year. But this year they are waiting for availability and reduced prices of papers.

Shaymol Pal, vice-president of Bangladesh Pushtak Prokashok Bikreta Samity, told TBS that the prices of co-curricular books will increase at least three-time if they print the books now. The paper and other materials prices are increasing every day. We have nothing to do but stop printing and selling.

 "We have about 26,000 members and more than 1.5 lakh staff. Many staff have already lost their jobs. The owners are counting losses every day," he said.

Printing of creative books may face problems

Altogether about 4000-5000 new books hit the Ekushey Book Fair each year. But the creative book publishers have not taken any initiative till now. They have a plan to publish some books from January if the prices decrease.

Monirul Haque, owner of Ananya Prakashani and executive director of Bangladesh Gyan O Srijonshil Prokashak Samity, told TBS that they have a plan to publish only 20% of total new books in January next year and the prices will also be high.

"We are in a risky position as printing of new books will be costly and we have to count losses if the book lovers do not buy books next February from the fair. We are not ready to count more losses as we were already in losses due to the Covid-19 pandemic," he said.

Uncertainty over free textbooks on time

Usually, one-third of the new textbooks are sent to upazilas by mid-October each year. But this time, it did not happen.

The printers said they printed only 5 crore books out of 35 crores till Thursday. They said, it is not possible for them to distribute free textbooks on time.

According to the National Curriculum and Textbook Board, a total of 34.62 crore books will be printed for the 2023 academic year. Of them, 9.99 crores are for pre-primary and primary students and 24.63 crores are for secondary level students.

About 4 crore students are studying at around 2,00,000 educational institutions in the pre-primary to secondary levels across the country.