When trash turn treasure

To the casual eye, trash look inconsequential bearing little worth, but beneath the surface there lies a huge opportunity waiting to be tapped.

From trash pickers to millers who recycle the waste, everyone involved in the process deserves admiration as they lend their hand not only to save environment but also to help a large segment of low-income group earn a living.

Waste paper recycling is a big untapped business in the country requiring public patronisation in right earnest to make it grow into a formal sector.

Apart from being a prime source of raw materials for paper mills, trash collection and management has turned out to be a source of employment for many.

No such statistics is available for the sector being informal in nature.

According to the business insiders, around 5,000 tonnes of waste papers are collected every day and recycled by 106 paper mills across the country.

The mill owners recycle scraped papers and make different types of products, i.e. board papers, normal papers, etc.

An employment sector for marginal group

According to Bangladesh Waste Paper Supplier Association, an organisation providing discarded papers to paper mills, there are, on average, 8-10 lakh people engaged in this sector.

Its General Secretary Jakir Hossain told The Business Post they have 265 members across the country. Besides, there are about two lakh scrap shops and suppliers all over Bangladesh.

The Business Post found a wide range of low-income group involved in waste business that has grown in almost every area including Saidabad, Jatrabari, Old Dhaka’s Nimtali, Chankharpul, Bangshal, Newmarket-Azimpur area, Mohammadpur, Mirpur, Gabtali, Uttara, Badda, Magbazar, Keraniganj, Chattgram Road and its surrounding areas. Both men and women and even children are involved in this profession.

Debu Das, a waste collector in Jatrabari area, said he sells scraps to Bhangari shops (shops dealing with recyclable goods). “I get separate prices for paper and plastic items. Papers sell at Tk 4 per kg and plastic Tk 10 a kg,” he said.

Mohammad Ainuddin and his wife Anwara Begum, owner of Mayer Doa Bhangari Store have been dealing in waste paper business for years in the city’s Dhalpur area -- buying discarded papers at a wholesale rate from garbage collectors for Tk 4 to Tk 5 a kg and selling them at Tk 8 to Tk 10 per kg to another scrap shop which is a little bigger than hers.

“On average, we buy and sell 500kg-600kg waste paper every day and earn Tk 40,000 to Tk 50,000 per month,” according to the couple.

A 21-year-old scrap shop -- Bhai Bhai Enterprise -- is in Chankharpul area of the capital. To narrate his experience, its proprietor Saidur Rahman said they supply discarded papers to paper and board mills across the country. On average, they buy and sell 8-10 tons of such goods per day.

Old carton boxes sell for Tk 15 to Tk 18 per kg, waste papers around Tk 15 to Tk 20 and road scrapped papers (abandoned papers) for Tk 8 to Tk 9 per kg.

“Our transport and other expenses go around Tk 1 to Tk 1.60 a kg. On average, we buy and sell around 8 to 10 tons of such goods daily and make a profit of around Tk 0.50 to Tk 0.60 per kg,” said Saidur.

Another trader Mokhles Mia in the area said he usually trades in waste carton boxes approximately 2 to 2.5 tons.

“I usually buy carton boxes for Tk 9 to Tk 10 per kg depending on their quality. The other cost associated with it is about Tk 3 to Tk 3.5 per kg and I sell them to the mill owners for around Tk 14 to Tk 15 per kg,” said the scrap businessman.

A Tk 2,700-crore recycling market

Taking to the sector people, it came to be evident that the waste paper recycling market is worth Tk 2,700 crore a year.

Abul Hossain, a Bhangari shop owner, who trades in waste paper in Mugda area, said he collects from the trash pickers discarded papers which are segregated into different types and bundled up weighing 25kg to 30kg.

“I give Tk 50,000 to Tk 1,00,000 in advance to the garbage collectors, who supply me with waste papers, or else, these materials won’t be available,” he said.

“With all costs excluded, I make sale on average 400kg to 500kg per day to another Bhangari shop while making a profit of Tk 0.75 to Tk 1 per kg.”

The waste paper supplier association president Md Babul Hossain said they supply around 5,000 tons of waste papers to the mill owners at Tk 10 to Tk 20 a kg depending on their quality.

“The price may vary some time depending on the situation. The market turnover stands at around Tk 2,700 crore yearly based on the average sale at Tk 15 per kg. However, our profit comes around Tk 0.15 to Tk 0.25 per kg,” added the business leader.

Potential sector

According to a global research and market report in February 2021, the Global Paper Recycling Market was estimated to be $45.5 billion in 2020 and is expected to grow $56.2 billion by 2025.

The scrap and waste traders said Bangladesh has potential in this sector because the recycling business is expanding in most countries of the world since it reduces production costs and reduces import dependence.

The waste paper supplier association demands an exemption of VAT that the millers charge them with.

“During Covid-19 pandemic, almost every sector got incentives, but we did not get any,” the leaders said, urging the government to focus on this informal sector which can help economy by reducing import of raw materials.

Babubazar paper market sources said production of various papers currently fulfills local demand. Earlier, offset printing papers used to be imported, however, that trend has changed a lot.

Only certain types of papers such as board papers, art papers are now dependent on import, but those can also be produced here if the government really wants so, said Rafikul Islam and Mizanur Rahman, paper wholesalers at Babubazar.  

Conducive to environment

Different types of wasted, useless old goods, which are thrown in the dustbin, pile up in the scrap shops across the city.

Had there been no such business, these waste papers would have ruined the environment by clogging drainage systems in different places.

“Actually, we are improving the environment through this trash business. Not only that, a whole lot of people are making their living by being involved in such profession,” said the association president Babul.

The waste collectors visit every house in the city and collect waste. Later, they segregate waste and sell them to scrap shops that make sale to the suppliers who send bundles of waste to the millers. Thus a chain economy is maintained through the process, which is very important, added the trade leader.

There are three types of trashcans. They are for compostable, recyclable, and landfill waste which the country needs to introduce for improved waste collection and management system in line with the developed world.

“If it is done, it will be easier to collect waste and prevent environmental pollution,” said Poribesh Bachao Andolon Chairman Abu Naser Khan.

The waste collectors are doing a very good job, but they are not following health rules. We should pay attention here also, he added.

Super logistics to paper mills

Hashem Paper Mills Ltd Managing Director Md Azmal Hossain told The Business Post he basically does not import raw materials. He collects it domestically -- using scrap or waste paper to produce papers.

Appreciating the waste collection and management role in the paper business, he said many paper mills produce their product using waste paper. It has a good prospect in Bangladesh.