[🇧🇩] Jute Industry in Bangladesh

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Govt to lease out closed jute mills to pvt sector: Bashir

Government is to lease out the closed jute mills to private sector to pave the way for reopening those, said adviser to the Ministry of Textiles and Jute Sk Bashir Uddin on Monday...

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Govt to lease out closed jute mills to pvt sector: Bashir
Bangladesh Sangbad Sangstha . Dhaka 10 February, 2025, 19:56

The adviser to the Ministry of Textiles and Jute, Sk Bashir Uddin, inspects operations of the Daulatpur Jute Mills under the BJMC in Khulna on Monday. | PID/ BSS photo.

Government is to lease out the closed jute mills to private sector to pave the way for reopening those, said adviser to the Ministry of Textiles and Jute Sk Bashir Uddin on Monday.

‘Steps have been taken to re-open the closed down jute mills in the country through leasing those out,’ he told a media briefing after inspecting operations of the Daulatpur Jute Mills under the Bangladesh Jute Mills Corporation in Khulna.

In this connection, he said that as leaseholders, businessmen were getting scope to invest in the closed down jute mills to reopen those and as a result fresh employment opportunities would be generated there.

Daulatpur Jute Mills are being operated under private management, according to a commerce ministry press release.

Bashir, also commerce adviser, said that the closed down government textile mills in Kurigram were leased out to the private last week. It is expected that the process of leasing out three more mills would be completed by this week, he added.

In case of running jute mills under government management, he said that nothing became fruitful in the long-term except for incurring losses of a thousand crore taka. Therefore, he said that there was a plan to lease out the government-owned jute and textile mills to private sector.

To keep all the existing jute mills in the country running, about 4 million tonnes of jute is required annually, but the country’s jute production is only 1.2 million tonnes.

In addition, the annual production of jute worldwide is only 2.5 million tonnes. In that case, it is not realistic to keep so many mills running with jute alone.

Therefore, the adviser said that the conditions for leasing out jute mills to the private sector were being relaxed side by side opportunities were being provided to set up other industries along with jute-based industries.

The adviser further said that the Daulatpur Jute Mills in Khulna after reopening its operations under private initiative had so far created about 700 employment opportunities. Employment opportunities for 3,000 more people will gradually be created there, he added.

Mentioning that such successful initiatives and investments will open up the path for employments, the adviser said that efforts were on to move forward the mills under private initiative in a positive and profitable process by continuing the production of jute products and shoes simultaneously.

Such innovative initiatives are not as effective when implemented by the government, he opined.

Responding to questions, the adviser further said that the existing syndicate in the market was not stronger than the government.

Bashir said that the government had been strictly monitoring the stockpile and supply of various commodities in the country. Temporary crisis to some extent in the edible oil market would be over in a few days, he added.

Deputy commissioner of Khulna Mohammad Saiful Islam and officials of Daulatpur Jute Mills were present on the occasion.​

 

[Saif]

BB eases loan rescheduling policy for raw-jute exporters

The Bangladesh Bank has eased loan rescheduling policy for raw-jute exporters for the next two years.

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BB eases loan rescheduling policy for raw-jute exporters
United News of Bangladesh . Dhaka 16 February, 2025, 22:52

The Bangladesh Bank has eased loan rescheduling policy for raw-jute exporters for the next two years.

The central bank on Sunday in a circular stated that raw-jute exporters could reschedule loans with a 2 per cent down payment of their outstanding loans. The loan outstanding will be calculated based on March 31, 2024.

As a result, the traders can get loans from scheduled banks as their moratorium will be accepted by banks.

Though Bangladesh is the global top raw jute exporter country, the traders have faced difficulties in exporting the item in the past few years.

The traders of this sector said that production costs had increased while export prices had stagnated on the global market.

‘Out-dated technology and old machinery have decreased the efficiency of the industry. Inefficient management and corruption have led to operational losses,’ said Abu Sufiya, a raw-jute exporter.

A lack of investment in modernisation and innovation has made the industry less competitive, he said.​

 

[Saif]

Is jute the answer to our plastic problem?

Plastic bags, particularly single-use plastics, have become a major cause for environmental pollution in Bangladesh.

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Is jute the answer to our plastic problem?

File photo: Habibur Rahman

Plastic bags, particularly single-use plastics, have become a major cause for environmental pollution in Bangladesh. Additionally, in urban areas, plastic waste accumulates on the roads, in footpaths, and public places. It also clogs drainage systems, leading to waterlogging and flooding during the monsoon. Plastic waste is polluting rivers and canals, too, harming aquatic ecosystems.

Rural areas, often overlooked in discussions about plastic pollution, are also severely affected. Plastic bags and other waste are frequently discarded in fields and open spaces, leading to the degradation of soil quality, which affects agricultural productivity. Moreover, plastic waste can contaminate water sources, posing serious health risks to the rural populations. This underscores the urgent need for sustainable alternatives like jute packaging.

In recent times, the interim government of Bangladesh has prioritised the production of environmentally sustainable jute bags to replace plastic bags in transportation and marketing. The feasibility of mandatory jute packaging has been dependent on consumer awareness and economic factors. Despite its eco-friendly nature, jute's practical application and cost-effectiveness in modern packaging solutions are essentially considered.

The introduction of mandatory jute packaging is not just an environmental initiative, but also a significant economic opportunity. It will positively impact the economy by creating employment, particularly in rural areas, and potentially reducing poverty. The Export Promotion Bureau (EPB) reported that the export of jute and jute products earned $912 million in FY2022-23. This indicates that a rise in demand for jute sacks will not only promote production, but also safeguard the jute industry, thereby protecting the environment.

Bangladesh enacted the Mandatory Jute Packaging Act, 2010 to address this situation. This law is aimed at reducing the use of single-use plastic bags and protect against environmental pollution. Section 4 of the act states that no product prescribed under this act can be sold, distributed or supplied without being wrapped in jute packaging.

As per Section 12 of the act, any product packaged violating the law will be confiscated. And according to Section 14, if any person who violates the law and instead uses artificial wrapping for selling, distributing or supplying products prescribed under the law, they will be subject to imprisonment not exceeding one year or a fine not exceeding Tk 50,000 or both.

The Mandatory Jute Packaging Rules, 2013, meanwhile, aims to promote the jute industry and reduce environmental pollution by requiring the use of jute packaging for specific products. This rule stipulates the mandatory use of jute packaging for products like paddy, rice, wheat, corn, fertiliser, sugar, chilli, turmeric, onion, ginger, garlic, pulses, coriander, flour, potatoes, and bran. Legal action can be taken against those who use plastic bags for these products.

In 2002, Bangladesh banned the production, use, marketing, and transportation of polythene bags under the Environmental Conservation Act, 1995, due to their harmful environmental impact. Subsequently, initiatives were undertaken to promote eco-friendly jute bags as an alternative.

However, despite all these efforts, the desired results have yet to be achieved due to inadequate enforcement of the rules and law. Due to widespread availability of plastics, many traders resist switching to jute packaging, often perceived as less convenient and more expensive. Unfortunately, harmful polythene remains prevalent, from street vendors to shopping malls. Even small items purchased from the local groceries are frequently given in polythene bags, as are products such as rice, pulses, fish, meat, and vegetables.

Polythene is non-biodegradable; it damages soil quality. Burning polythene releases harmful carbon monoxide gas into the air. Weak enforcement and a lack of accountability have emboldened violators to continue disregarding the law. According to a World Bank report from December 2021, there was a significant increase in daily plastic waste generation in Dhaka, from 178 tonnes in 2005 to 646 tonnes in 2021. This surge occurred despite the ban on polythene production, which is still carried out by around 1,500 factories, mainly located in Old Dhaka.

Due to the influence of unscrupulous traders and polythene factory owners, these factories cannot be closed outright. They provide employment to many people, and sudden closure could lead to a spike in unemployment, which would be detrimental to the country's economy. Even if the government decides to close these factories, it must be done gradually and thoughtfully.

To ensure compliance, it is crucial that the government amends the existing law to require jute packaging for all mills and imposes stricter penalties, including licence revocation. Furthermore, to enforce the mandatory use of jute packaging, the authorities should increase the number of mobile courts conducting regular inspections. This will send a strong message to violators and deter future non-compliance.

It is imperative to revive the lost tradition of jute in our economy and encourage the widespread use of eco-friendly jute products. The Mandatory Jute Packaging Act, 2010 is a significant law, but its implementation needs to be improved. To ensure its success, it is imperative to raise public awareness and encourage active participation of the government, businesses, and citizens. By addressing these issues, Bangladesh can significantly reduce plastic pollution and promote sustainable practices.

Atiqur Rahaman is apprentice lawyer at the District and Sessions Judge's Court, Dhaka and a human rights activist.​

 

[Saif]

Simple solution for seemingly complex issues

There was a time when jute was called the 'Golden Fiber of Bangladesh' and was one of the major foreign currency-earning sectors. This was because Bangladesh produced-and still produces-65 per cent of the world's raw jute. Moreover, the strength of the jute fiber produced in this land is 40 per ce

thefinancialexpress.com.bd

Reclaiming global competitiveness for jute
Simple solution for seemingly complex issues
Ajeyo Rohitashwo Al Quazi
Published :
May 07, 2025 23:48
Updated :
May 07, 2025 23:48

There was a time when jute was called the 'Golden Fiber of Bangladesh' and was one of the major foreign currency-earning sectors. This was because Bangladesh produced-and still produces-65 per cent of the world's raw jute.

Moreover, the strength of the jute fiber produced in this land is 40 per cent higher than that of the remaining 35 per cent produced in other regions, such as West Bengal and Assam-not to mention its superior color quality. Tossa jute, one of the varieties produced in Bangladesh is considered to be the finest quality.

This reality turned into a fairy tale in the early 2000s when the Government of Bangladesh decided to shut down state-owned jute mills due to recurring annual losses, primarily caused by systemic failures.

As a natural consequence, a supply chain gap emerged in the international market, creating a dream-come-true scenario for neighbouring countries involved in jute product manufacturing.

And Bangladesh? From being a leading manufacturer of jute products, the country was reduced to merely a raw material exporter-a vicious cycle it has yet to break.

A paper published on the ResearchGate on Bangladesh's jute industry in 2021 showed the impact of the industry's decline that was visible both economically and socially. Bangladesh earned US$ 600 million from jute exports in 1990, a 5 per cent contribution to gross domestic product (GDP). But the numbers never grew from there and jute exports came down to US$ 150 million only in 2020, with less than 1 per cent contribution to the GDP.

In the same time period, jute industry employment came down from 3 million to less than a million.

Currently, Bangladesh exports approximately 40 per cent of its raw jute at an average rate of US$610 per ton. These same raw materials, once converted into jute products by other countries, are sold at around US$1,080 per ton to international buyers.

Despite producing 65 per cent of the world's raw jute-and of superior quality-Bangladesh has minimal stake in the global jute market. As a result, prices are dictated by countries that produce only 35 per cent of the total raw jute.

Although the Government of Bangladesh (GoB) has taken steps to provide cash incentives to jute mills, the damage was already done during the supply chain collapse of the early 2000s, and new major players emerged.

CAN THE TABLES BE TURNED: The answer is both simple and complex. Simple, because the decisive factor is the Government of Bangladesh itself. Complex, because the question remains: can the government remain firm in its decision, or will it create another policy blunder like the so-called 'Hilsa Fiasco'?

Turning the tables can be straightforward. Since Bangladesh still produces and exports more raw jute than any global competitors, priority should be claiming the global market position back.

First, the government has to focus on increasing raw jute prices. Since stopping raw jute exports may not be feasible, Bangladesh can impose an export tax on raw jute.

Second, the government needs to restrict export to sea routes only-any other mode should be considered smuggling, and the product should be confiscated and resold in the domestic market at a lower price.

Implementing both means Bangladeshi manufacturers would automatically gain a price advantage over foreign competitors.

Additionally, the government may consider reinvesting the levies collected to increase incentive rates for local jute manufacturers. This will enable Bangladeshi manufacturers to offer the most competitive prices globally, and the market will certainly open up. Bangladesh can also look at other Asian countries for good case studies of interesting and encouraging policies and initiatives.

For example India's government buys about Rs 12,000 crore of jute sacks yearly for foodgrain storage, effectively guaranteeing demand. A similar state procurement policy could stabilise Bangladesh's jute mills. India's government likewise enforces a strict packaging law: in Dec 2023 it mandated 100 per cent of foodgrains and 20 per cent of sugar be packed in jute bags. These norms use approximately 65 per cent of India's jute output and support roughly 4 lakh workers and 40 lakh farmers. With more business opportunities comes more investment and investment generates employment opportunities. Jute being a labour-intensive industry, can generate employment for thousands at a stretch.

Though not a major jute producer, the Philippines offers a comparable case in its government-supported abaca-Manila hemp industry. The Philippine Fiber Industry Development Authority (PhilFIDA) provides subsidies, R&D, and quality certification schemes that allowed abaca fiber exports to thrive, contributing over US$130 million in 2022. Bangladesh could explore establishing a similar jute-specific authority with R&D and market access mandates.

The European Union's Green Deal and Circular Economy policies increasingly favour natural fiber packaging and biodegradable alternatives. While specific figures vary, there has been a notable rise in demand for jute-based goods, particularly in countries like Germany and the Netherlands. Bangladesh can align with these trends by branding itself as a climate-responsible jute producer and investing in green product standards. Additionally, Turkey stands as a significant importer of Bangladeshi jute. These markets present opportunities for Bangladesh to pursue more business opportunities, targeted product diversification and value-added jute manufacturing.

Just to cite an example: if daily production increases in our country by 500 tons, i.e., 13,000 tons per month (which is minimal), an additional 15,000 unskilled labourers from the marginal class will have employment opportunities. While automation is eating up low and unskilled people's jobs in many sectors, jute industry can be the one to accommodate a large number of such employees.

If the policymakers take these initiatives to gain global market price competitiveness for Bangladesh's raw jute, we can expect employment opportunities for approximately 45,000-55,000 unskilled people by 2027. And by 2030, jute might stand next to the RMG sector in employment.

If the GoB can sustain such policies and initiatives until 2035, the country could once again reclaim its position as the leader of the global jute market, having employed at least a million people as blue-collar workers.

But the question remains, will the GoB walk that path of claiming lost glories?

The author is a writer, novelist, business enthusiast and a pro-Bangladeshi thinker. He is the Chief Strategy Officer of Jute Alliance Limited.​

 

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thefinancialexpress.com.bd

Massive plan afoot to grow jute in Khulna region

OUR CORRESPONDENT
Published :
May 27, 2025 08:31
Updated :
May 27, 2025 08:31

KHULNA, May 26: Farmers have taken extensive plans to bring a vast tract of land into jute cultivation in Khulna region and grow the cash crop on a massive scale this season.

Jute is a cash crop which is known as 'golden fibre' in the country whose climate and soil are suitable for its production.

According to official sources, jute sowing began in Khulna region in the first week of April. In order to increase jute production, intensive cultivation is now underway.

They believe if weather is favourable, it will be possible to start harvesting jute in mid-July to the first week of September.

Farmers will be able to achieve the target, which will create interest among other farmers for jute production.

The huge jute production will play an important role in the country's economy.

According to sources from the Department of Agricultural Extension, Khulna region has set a target for jute cultivation and production in the current 2025-26 Kharip-1 season in order to increase jute production in this region.

Some 1,447 hectares of land will be brought into jute cultivation in Khulna district, 1,960 hectares in Bagerhat, 12,550 hectares in Satkhira and 23,900 hectares in Narail.

DAE sources the target has been fixed to grow jute on 38,078 hectares in Khulna region.

In the current Kharip-1 season, initiatives have been taken to achieve the target on 1,471 more hectares of land in Khulna region compared to last year's.

Shahbuddin, a farmer of Dighlia, said, "This year I have cultivated jute on 5 hectares of land. I have given water to the field."

Local upazila agricultural office provides overall assistance, he added.

Md Amirul Islam, deputy assistant agriculture officer of Kalia Upazila Agriculture Office, said jute has been cultivated on 150 hectares of land in different villages of Dhushati, Bil Bauch, and Baladanga blocks in my Salamabad Union.

Jute cultivation began in mid-April of this year, which has already been completed. After sowing, various works including weed control, thinning to increase the height of the trees, application of chemical fertilizers, and disease and insect control are underway.

Khulna's Dighalia Upazila Agriculture Officer Kishore Ahmed said that in order to increase jute production in Dighalia, 50 hectares of land have been brought into jute production. The upazila agriculture office is providing overall support for farmers to grow jute. Khulna Region DAE Additional Director Md Rafiqul Islam said that the target of jute cultivation and production has already been set for the current 2025-26 Kharip-1 season. The target of jute cultivation in the Khulna region has been set at 39857 hectares of land.

Against the production target, the cultivation in this region has already progressed by 38,078 hectares, which is 95.5 per cent.

This season, initiatives have been taken to achieve the target on 1,471 more hectares of land in Khulna region compared to last year's.​