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[🇧🇩] Jute Industry in Bangladesh

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G Bangladesh Defense Forum

Fresh focus on jute packaging
Wasi Ahmed
Published :
Sep 17, 2024 22:08
Updated :
Sep 17, 2024 22:08

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The directive of the interim government to halt use of poly bags in the super shops looks like a first step in materialising the mandatory jute packaging law that seemingly lost its urgency despite sporadic moves to enforce it in the past. Obviously, the only viable alternative to poly bags is jute-made packaging stuffs.

Environment, forest and climate change adviser to the interim government announced the ban of polythene and polypropylene shopping bags across all superstores in the country starting October 1. She made the announcement during a meeting with stakeholders. A press release issued in this regard says the government will require superstores to offer jute and fabric bags as eco-friendly alternatives. There will also be an emphasis on engaging young people and students in the initiative. A detailed action plan has reportedly been formulated to enforce the upcoming ban, including steps to raise public awareness through a nationwide media campaign. To ensure the availability of jute and fabric shopping bags, the Ministry of Textiles and Jute will hold meetings with superstore operators within a week to secure a steady supply of alternative bags.

The decision, one may recall, is not new. A ban on the use of poly bags or other non-biodegradable materials for packaging was imposed as early as 2002, first of its kind in the world to curb pollution and water-logging, and also as a breakthrough in the increased consumption of jute materials domestically. Following the restrictions, there was a surge for a while in the use of paper and other biodegradable materials (in the absence of sufficient jute bags) for packaging, and no doubt it did signal a shift that further needed to firm up actions in a sustained manner.

Unfortunately, that did not happen. What is surprising is that the authorities had backtracked from the restrictions on the use of polythene or synthetic materials for packaging all kinds of groceries in the shops, kitchen markets and super stores. So, what promised like a good prospect had gone into oblivion. There were quite a few moves including framing of a law, and a verdict by the Appellate division of the High Court, to make jute packaging mandatory in respect of a variety of commodities. These, though reinforced later by law enforcers' drives in the market places, fell flat as the then government's effort to replace packaging by plastic or synthetic materials with jute sacks/bags remained unheeded.

The law on the mandatory use of jute sacks was enacted in 2010, but in the absence of rules to be followed, it was largely ignored. Subsequently, a set of rules for implementation of the law had been formulated which among others sought to ensure use of jute sacks in packaging a number of products, including rice. The ministry of textiles and jute on September 26, 2013 issued a Circular on mandatory use of jute bags for commercial packaging of rice by the private rice millers, husking millers and rice traders. It had also asked them to stop using polythene/plastic bags by December 2014. But the millers and traders did not comply with its instructions. Subsequently, some rice mill owners filed a writ petition with the High Court seeking a stay order on the enforcement of the Circular. In response, the High Court in an ad-interim order stayed the government directive relating to mandatory jute-bag use. However, following the government's move in the form of Appeal, the Appellate Division vacated the stay order upholding the government' directive on mandatory jute packaging.

It may be noted that while making jute packaging of rice mandatory, the directive of the government had included a number of other products. These were - paddy, wheat, maize, fertiliser, sugar, spices, turmeric, onion, ginger, garlic, coriander, pulses, potato, flour, crude flour (ata) and rice bran. Later, two other products-poultry and fish feed were also included in the list.

It was not the lack of compliance alone but dearth of sufficient and cost-effective jute bags/sacks that stood in the way of enforcement. Now that the interim government is set to revive the issue-- much to the relief of conscious citizens, it is important to go by phases. Starting with the super stores, the ban should gradually extend to other areas such as kitchen markets, shops, restaurants. Eventually, it would be important to make use of jute sacks compulsory for packaging food grains.

Packaging of food grains has for long been viewed crucially important for a variety of reasons. In the wake of the global campaign on the use of environmentally friendly, biodegradable natural materials in as many areas as possible, it is highly likely that Bangladesh being the producer of world's finest variety of natural fibre - jute, would make the best use of it to draw benefits in tangible economic terms. Experts are of the opinion that if enforced strictly, use of jute sacks will no doubt go beyond environmental security as it will ensure better price for jute growers and jute goods manufacturers, who are currently facing a lingering slump in view of receding demand.

It is expected that the authorities will take lesson from the past. The success of the move depends on availability of biodegradable materials and enforcement of the law. As the authorities will proceed to bring other areas under non-polythene packaging, shortage of required materials, say jute bags/sacks, may be a problem, which had been the case in the past. It is thus important to ensure availability first.​
 

No respite for jute goods makers from export fall

Bangladesh's exports of jute and jute goods have been falling continuously as many buyers have switched to synthetic and regenerated cotton yarn due to high prices of the golden fibre in the domestic market.

In the absence of adequate domestic demand, the country, the second-largest producer of jute after India, is reliant on global buyers for jute yarns, sacks, and bags.

However, shipments of jute and jute goods have been falling since exporters logged $1.16 billion in fiscal year (FY) 2021-22.

Earnings from the sector fell 6 percent year-on-year to $925 million in FY24.

In the July-September quarter of FY25, exports of raw and processed jute fell 20 percent year-on-year to $178 million, according to the data unveiled by the Export Promotion Bureau.

In the absence of adequate domestic demand, Bangladesh is reliant on global buyers for jute yarns, sacks and bags

Raw jute exports fell 31 percent in the period while shipments of jute yarn and twine, the biggest export item in the sector, declined by a fifth.

Industry stakeholders said the demand for jute yarn began to decline after the Covid-19 pandemic, when prices of locally grown raw jute shot up to Tk 5,500-Tk 6,000 per maund (around 37 kilogrammes).

"Our closest competitor is polypropylene yarn and demand for that has increased among buyers. This is also because demand for recycled carpet has increased in the West," said Md Mamunur Rahman, director of Rahman Jute Spinners Private Ltd.

Besides, the use of regenerated cotton yarn in carpet-making has seen an uptick as rugs made of cotton yarn are easy to fold.

Locally, an unhealthy competition to grab buyers among jute millers worsened the situation.

Of late, spiralling prices of raw jute in the domestic market have also cast a shadow over export prospects.

Helal Ahmed, chief operating officer of Janata-Sadat Jute Mills, one of the leading jute exporters, said inclement weather affected jute cultivation.

The Department of Agricultural Extension (DAE) estimates that Bangladesh's jute production fell to 75.65 lakh bales in the FY25, down 18 percent year-on-year.

Alongside that, stockists have become active in buying raw jute. So, prices jumped to around Tk 3,800-Tk 4,000 each maund, he said.

"No miller has been able to buy jute as prices of jute goods have not risen in the international market," he said.

"Many mills have suspended production. A number have reduced production drastically."

Ahmed said increased freight costs also affected exports.

"We have to ensure domestic use of jute to protect the sector," he said.

Rahman said the implementation of the law for mandatory use of jute sacks and bags for certain commodities, including rice, is urgently needed to protect the sector, which employs four crore people directly and indirectly.

"The jute industry's situation is dire," he lamented.

"We are already at the bottom of export earnings. The problem now is that foreign buyers want to purchase but we cannot accept orders because our cost to make yarn has shot up due to soaring prices of raw jute."

Bangladesh produces roughly 80 lakh bales of raw jute annually, with jute millers and spinners processing 80 percent to make sacks, bags, yarn and twine, mainly destined to be exported.​
 

পাটের দাম বাড়লেও খুশি না কৃষক, চড়া বাজারে লাভ ব্যবসায়ীর
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লালমনিরহাটের সদর উপজেলার বড়বাড়ী হাটে মহাজনদের কাছে পাট বিক্রি করছেন ক্ষুদ্র ব্যবসায়ীরা | ছবি: এস দিলীপ রায়/স্টার

অন্তর্বর্তী সরকার পলিথিনের ব্যবহার নিষিদ্ধ ঘোষণা করার পরে বাজারে বেড়েছে পাটের চাহিদা। সেই সঙ্গে বেড়েছে পাটের দাম। কুড়িগ্রাম, লালমনিরহাট ও রংপুরের কয়েকটি বাজারে গত দুই সপ্তাহে মণ প্রতি পাটের দাম বেড়েছে এক হাজার থেকে এক হাজার ১০০ টাকা পর্যন্ত।

এসব বাজারে বর্তমানে তিন হাজার ২০০ থেকে তিন হাজার ৬০০ টাকা দরে প্রতি মণ পাট বিক্রি হচ্ছে।

পাটের দাম হঠাৎ বাড়লেও খুশি না কৃষক। তারা বলছেন, এতে লাভবান হবে ব্যবসায়ীরা।

এই তিনটি জেলার একাধিক কৃষকের সঙ্গে কথা বলেছে দ্য ডেইলি স্টার। তারা জানিয়েছেন, অধিকাংশ কৃষক আগেরই উৎপাদিত পাট বিক্রি করে দিয়েছেন। সে সময় পাটের দাম ছিল প্রতি মণ পাট দুই হাজার ২০০ থেকে আড়াই হাজার টাকা।

বাড়তি লাভের অর্থ পাচ্ছেন ক্ষুদ্র ব্যবসায়ী ও মহাজন।

লালমনিরহাটের সদর উপজেলার বড়বাড়ী হাটে কথা হয় পাট ব্যবসায়ী আলতাফ হোসেনের সঙ্গে। তিনি ডেইলি স্টারকে বলেন, 'প্রায় এক মাস আগেই কৃষকরা তাদের উৎপাদিত পাট বিক্রি করেছেন। আনুমানিক আট থেকে ১০ শতাংশ কৃষকের ঘরে সামান্য কিছু পাট সংরক্ষিত আছে।'

আলতাফ বলেন, 'যারা পাট ঘরে রেখেছিলেন, তারা এখন বাড়তি দাম পাচ্ছেন। মূলত যেসব ক্ষুদ্র ব্যবসায়ীরা কৃষকের কাছ থেকে পাট কিনে গুদামজাত করেছিলেন, তারাই এখন বাজারে পাট বিক্রি করছেন।'

দুই হাজার ২০০ থেকে আড়াই হাজার টাকা মণ দরে মোট ১০০ মণ পাট কিনে গুদামে রেখেছিলেন বলে জানান আলতাফ।

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ছবি: এস দিলীপ রায়/স্টার

কুড়িগ্রাম সদর উপজেলার যাত্রাপুর হাটের মহাজন সুনীল চন্দ্র ডেইলি স্টারকে বলেন, 'পলিথিনের ব্যবহার নিষিদ্ধ ঘোষণার পরেই বড় কোম্পানিগুলো বেশি দরে পাট কিনতে শুরু করেছে। পাটের চাহিদা বাড়ায় আমরা স্থানীয় ক্ষুদ্র ব্যবসায়ীদের কাছ থেকে পাট কিনছি। তারাও সরাসরি কোম্পানিগুলোতে পাট বিক্রি করছেন।'

কুড়িগ্রামের চর রাজিবপুর উপজেলার কোদালকাটি গ্রামের কৃষক নুরু মিয়া জানান, তিনি এ বছর ছয় বিঘা জমিতে ৪৯ মণ পাট উৎপাদন করেছিলেন। প্রতি মণ পাট উৎপাদনে তার খরচ হয়েছিল দুই হাজার ৩০০ টাকা। একমাস আগে দুই হাজার ৪০০ টাকা মণ দরে তিনি ৪৪ মণ পাট বিক্রি করেছেন, ঘরে রেখেছেন পাঁচ মণ পাট।

তিনি বলেন, 'পাটচাষ এখন আর লাভজনক না। আমরা কেবল পাটকাঠির জন্য চাষ করি। যখন বাজারে পাটের দাম বাড়লো, তখন আমাদের ঘরে বিক্রির জন্য পাট নেই। পাটের দাম বাড়ায় ব্যবসায়ীরা লাভবান হয়েছেন।'

রংপুরের গংগাচড়া উপজেলার মহিপুর গ্রামের কৃষক সন্তোষ চন্দ্র বর্মণ বলেন, 'প্রতি মণ পাট উৎপাদনে খরচ হয় দুই হাজার থেকে দুই হাজার ৩০০ টাকা পর্যন্ত। প্রতি বিঘা জমিতে পাওয়া যায় আট থেকে ১০ মণ পাট। বিক্রি করতে গেলে সে অনুযায়ী লাভ হয় না। যে কারণে পাটচাষ অনেক কমে গেছে।'

এক যুগ আগেও সন্তোষ ১২ থেকে ১৫ বিঘা জমিতে পাটচাষ করতেন। এখন তিন থেকে চার বিঘা জমিতে পাটচাষ করেন। বাড়িতে পাট ও পাটকাঠির প্রয়োজন হয়। সেই কারণে তিনি পাটচাষ ধরে রেখেছেন।

কৃষি সম্প্রসারণ অধিদপ্তরের তথ্য অনুসারে, রংপুর অঞ্চলের প্রায় ৯০ হাজার কৃষক পাটচাষ করেন।

এ বছর রংপুর অঞ্চলের পাঁচ জেলা—কুড়িগ্রাম, লালমনিরহাট, গাইবান্ধা, রংপুর ও নীলফামারিতে ৫০ হাজার ৮৪৪ হেক্টর জমিতে পাটচাষ হয়েছিল। উৎপাদন হয়েছিল এক লাখ ১৯ হাজার ৭৩৩ মেট্রিক টন পাট।

পাট উন্নয়ন অফিসার তৈয়বুর রহমান ডেইলি স্টারকে বলেন, 'আমরা কৃষকদের একসঙ্গে সব পাট বিক্রি করতে নিরুৎসাহিত করি। কিন্তু টাকার প্রয়োজনে তারা উৎপাদিত সব পাট একসঙ্গে বিক্রি করেন। যারা কিছু পাট বাড়িতে রেখেছিলেন, তারা এখন বেশি দর পাচ্ছেন।'

তিনি আরও বলেন, 'পাটজাত পণ্যের ব্যবহার বাড়তে থাকলে আগামীতে পাটের দাম আরও বাড়বে এবং কৃষক লাভবান হবেন।'​
 

Jute millers struggling amid export slump

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Jute millers are struggling as exports show no sign of recovery and demand in the domestic market remains lukewarm amid slack implementation of the mandatory jute packaging act.

Industry operators say falling demand for jute -- once dubbed the golden fibre of Bangladesh -- has forced jute yarn makers to slash production by up to 40 percent, with only two dozen of a total of 77 spinners under the Bangladesh Jute Spinners Association (BJSA) operating at full capacity.

"The health of the sector is dire. We are struggling too much. Only a few mills are solvent now," said BJSA Chairman Tapash Pramanik.

Jute yarn is the main export item within the sector, and shipments of jute yarn and twine have been falling since their peak of around $800 million recorded in 2020-21 fiscal year.

Many foreign buyers have switched to cotton yarn and polypropylene (PP) due to the high prices of jute yarn caused by increases in raw jute prices.

Overall earnings from the natural fibre-based yarn slumped to $492 million at the end of FY24, according to the Export Promotion Bureau (EPB).

Shipments of jute sacks and bags also declined during these years, bringing total receipts to $855 million in FY24 -- a 6 percent year-on-year decrease.

During the July-November period of the current FY25, exports of jute and jute goods slipped 10 percent year-on-year to $341 million.

"The situation of composite mills is not good either," Pramanik said.

"We are gradually losing competitiveness in the global market. We used to export to India, but exports there have declined after the imposition of anti-dumping duty by the Indian authorities."

The sector has not received the same level of policy support as it did in the past, while the cost of production has surged due to increased raw jute prices, according to Pramanik.

"We could have navigated this turbulent time had the mandatory jute packaging act been implemented effectively in the local market," he said.

The government enacted a law in 2010 making jute sacks mandatory for packaging 19 essential products, including rice, wheat, maize, pulses and flour.

This was aimed at stabilising the sector amid fluctuating international demand and promoting the use of biodegradable bags.

However, it took five years for the rice millers to start complying with the law, and many have since switched to plastic bags.

"We are facing competition from plastics in the domestic market," Pramanik said.

An industry insider said most mills have significantly scaled down production to maintain minimal operations because of bank loans.

"We have fixed costs despite the decline in exports. Our current income is barely enough to cover interest payments on bank loans," said Abdul Barik Khan, secretary-general of the Bangladesh Jute Mills Association.

Besides, jute hoarders are driving up raw jute prices, making the situation complicated further.

Industry operators previously blamed a poor jute yield for higher prices.

Bangladesh's jute production fell 18 percent year-on-year to 75.65 lakh bales (one bale is around 182 kilogrammes) in FY25, according to the Department of Agricultural Extension (DAE).

Jute millers and spinners process nearly 80 percent of the natural fibre to produce sacks, bags, yarn and twine, mainly for export markets.

Helal Ahmed, chief operating officer of leading jute exporter Janata-Sadat Jute Mills, said raw jute used for yarn production is selling for around Tk 4,000 per maund.

"However, export prices are declining. Demand for yarn from Turkey and Uzbekistan has decreased, as carpet makers there are exploring alternatives to jute yarn," he said.

"The overall jute industry is not in good shape," Ahmed said.

Helal said the demand for jute bags has increased in the domestic market recently following the government's move to discourage the use of plastic bags in shopping. But the government should come up with a solid plan to restrict the use of plastic bags, enabling local mills to be ready to meet the local demand.

"Many factories that once operated three shifts a day have reduced production to a single shift. We expect a positive outlook after the next harvest in August, as production is expected to increase," he added.​
 

Reopening of state-owned jute mills demanded
Staff Correspondent 22 December, 2024, 22:33

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The Jatiya Sramik Karmachari Sangram Parishad on Sunday called for the reopening of 26 closed state-owned jute mills and other mills after modernisation.

The platform made the demand at a press conference at the National Press Club.

Abdullah Kafi Ratan, a member of the parishad who presented the keynote speech, said that the ousted fascist Awami League government, without considering the livelihoods of 50,000 workers and thousands of jute farmers, shut down 26 state-owned jute mills on July 2, 2020, during the COVID-19 pandemic.

In the same year, on December 1, the Awami League government shut down six out of 15 state-owned sugar mills, citing losses as the reason.

Mentioning that the Professor Muhammad Yunus-led interim government, upon the recommendation of an 11-member task force formed on September 30, agreed to reopen the closed sugar mills in phases, the labour leader described this decision as ‘a historic victory for the movement to reopen closed mills.’

He said that the aim of the ruling class’s imperialist-dependent neoliberal policies was to hand over state-owned industrial enterprises to private ownership, which is a direct attack on workers, farmers, and the toiling masses.

‘It is a high time to build a national movement to resist the anti-people policies of the government, which serves the interests of imperialism and the exploitative ruling class,’ he added.

Manos Nandi, president of the central committee of the Bangladesh Sramik Karmachari Federation, emphasised the need for a fair policy to make sugar mills viable and profitable.

Jatiya Sramik Karmachari Songram Parishad convener Md Harunur Rashid Bhuiyan presided over the event.​
 

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