[🇧🇩] Jute Industry in Bangladesh

[Saif]

Bangladesh's quest to restore the golden glory of jute | Bangladesh

In an effort to breathe a new life into Bangladesh's jute industry, the government is actively exploring untapped markets to elevate the global significance of jute and its associated products.<p>State Minister for Foreign Affairs, Shahriar Alam, conveyed this commitment at a function in Dhaka...

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Bangladesh's quest to restore the golden glory of jute
In an effort to breathe a new life into Bangladesh's jute industry, the government is actively exploring untapped markets to elevate the global significance of jute and its associated products.

Jute, once hailed as Bangladesh's 'Golden Fibre,' reached its zenith 52 years ago. File photo

State Minister for Foreign Affairs, Shahriar Alam, conveyed this commitment at a function in Dhaka, urging foreign diplomats to champion the cause of eco-friendly jute products.

However, amidst this ambitious quest lies a pressing concern — a decade-long decline in jute prices within Bangladesh. Presently, the market sees jute being traded at a rate ranging from Tk 1,800 to Tk 2,200 per maund, marking a significant drop from Tk 2,400 to Tk 2,800 per maund just a year prior.

This trend has left those who stockpiled jute last year in anticipation of higher prices facing considerable financial losses.

The Bangladesh Jute Association (BJA) underscores the effective role the government can play in sustaining the jute industry.

Their recommendations include ensuring fair procurement prices, offering loans and incentives through banks, and extending cash support to individuals involved in jute-related exports. The absence of government support could potentially plunge everyone associated with the jute sector into challenging times.

Against the backdrop of these challenges, there is optimism among stakeholders that the government will intervene, providing the necessary support to rejuvenate the sector and usher in a new era of prosperity.

The Rise and Fall of Jute

Jute, once hailed as Bangladesh's 'Golden Fibre,' reached its zenith 52 years ago. Now, the government is on a mission to resurrect its former glory. Agronomists are immersed in intensive research to develop new jute varieties, and the integration of advanced technology is deemed a crucial step towards restoring the industry's former splendour.

The Ideal Growing Conditions: Bangladesh's Natural Advantage

The thriving growth of jute plants hinges on fertile, well-drained soil with excellent water-holding capacity. The alluvial soil in the deltaic regions of Bangladesh, enriched by sediment deposits from the Ganges and Brahmaputra rivers, creates the ideal conditions for optimal jute cultivation.

Economic Contributions and Global Presence

Bangladesh's jute exports make significant contributions to the national income. With 285 diverse jute products exported worldwide, including raw jute, hessian, bags, sacks, ropes, and carpets, the country has solidified its position as a key player in the global jute market.

Challenges and the Road Ahead

Despite its historical significance, Bangladesh's jute sector grapples with challenges such as mismanagement and corruption within the Bangladesh Jute Mills Corporation (BJMC), a lack of modern machinery, a shortage of skilled workers, weak marketing strategies, and government policies that demand reassessment.

Global Dynamics: India and Turkey's Roles

India holds the position of the world's largest producer of raw jute and jute goods, contributing over 50% and 40% of global production, respectively. Turkey emerges as Bangladesh's largest market for jute yarn and twine, with other major export destinations including Iran, India, Pakistan, and China.

Seizing Opportunities: The $2.6 Billion Jute Bag Market

The global market for jute bags is projected to reach $2.6 billion in 2022, presenting a significant opportunity for Bangladesh. Currently producing 33% of the world's total jute and exporting 90% of the raw jute it produces, Bangladesh has the potential to leverage this opportunity for sustainable economic growth.

A Sustainable Future for Bangladesh's Jute Industry

As Bangladesh endeavours to reinstate the prominence of its jute industry on the world stage, collaborative efforts involving the government, industry players, and international partnerships are crucial.

Addressing challenges and capitalizing on global opportunities can position Bangladesh's jute sector as a beacon of economic strength and environmental responsibility once again.​

 

[Saif]

Bangladesh exports jute, jute goods worth $1.2 bn | Bangladesh

Bangladesh has exported jute and jute goods worth $1.2 billion in the last fiscal year as the sector contributes 1.4% to the country’s Gross Domestic Product (GDP).<p>"Jute contributes 1.4% to the GDP and 26% to agriculture," Director General of Bangladesh Jute Research Institute (BJRI) Dr Md...

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Bangladesh exports jute, jute goods worth $1.2 bn

Bangladesh has exported jute and jute goods worth $1.2 billion in the last fiscal year as the sector contributes 1.4% to the country's Gross Domestic Product (GDP).

Bangladesh is the second largest producer of jute in the world with an estimated average annual production of 1.44 million tonnes. File photo

"Jute contributes 1.4% to the GDP and 26% to agriculture," Director General of Bangladesh Jute Research Institute (BJRI) Dr Md Abdul Awal told a workshop in Dhaka, according to a handout.

The BJRI organised the workshop on "Progress, obstacle and doings of jute sector" to achieve the Sustainable Development Goals (SDGs).

Additional Secretary of the Ministry of Textiles and Jute Md Ruhul Amin Talukdar and senior officials of BJRI, among others, were present at the workshop.

Awal called upon relevant organisations to take necessary and effective steps to boost jute and jute goods production.

He said, "Alongside commercial side, jute is an eco-friendly crop as jute absorbs 15 tonnes of carbon dioxide from the atmosphere and releases 11 tonnes of oxygen during 100 days of the crop."

Family nutrition can be met by growing jute, Awal added.

"One of the problems with jute is the seed problem. The government is working to produce quality of seed of jute for increasing production," he said.

Bangladesh is the second largest producer of jute in the world with an estimated average annual production of 1.44 million tonnes and the local consumption is 1.16 million tonnes. The country exports around 0.19 million tonnes annually, according to Bangladesh Jute Spinners Association.

Bangladesh is also the top exporter of jute and jute-based products with average annual exports of around $1 billion, according to BIDA.​

 

[Saif]

Khulnaâs jute products grabbing global market | Business

The jute products made in various private jute factories in Khulna region are increasingly drawing the attention of the global market, posting a rise in their exports.<p>According to exporters, various handmade jute products have also gained great popularity in Middle Eastern countries.</p><p>...

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Khulna's jute products grabbing global market
The jute products made in various private jute factories in Khulna region are increasingly drawing the attention of the global market, posting a rise in their exports.

According to exporters, various handmade jute products have also gained great popularity in Middle Eastern countries.

They hope that the jute industry will make a turnaround again if they get government support at various levels, including finding new markets internationally.

Multipurpose jute products like yarn, packing equipment, smart jute bags, tubs, toys, jewellery items, mats, shoes, sandals, baskets, carpets and table mats are made in various private jute factories of Khulna, officials here said.

They said the exports of those products have marked a substantial rise amid the high demand both in the domestic market as well as the global one.

During the first six months of last year, 573 consignments of jute goods were exported from Khulna region, and 609 consignments in the next six months, according to the officials.

In 2020, they said, the income of exporting jute products is more than seven million dollars. In this situation, businessmen demand increased government incentives and export facilities to catch new markets abroad.

They said that 'Green Nari Kalyan Foundation' has been making various jute products with jute yarn for a long time.

Sakera Banu, the chief executive of the foundation, said that the government should increase supervision to maintain the demand for jute products.

She said that the use of jute in the country should be increased. Many more people will be interested in working with jute if they get government support at various levels, she added.

Yunus Ali Shimul, Manager (Export) of Jute Textiles Mill, one of the largest jute manufacturing companies in Khulna, said that production costs must be reduced if jute products are to remain competitive in the European market.

For this, he said, cooperation should be increased with incentives at the government level.

Director of Ayan Jute Mill, another big jute-manufacturing company in Khulna, Zahir Uddin Rajeev said, "It is very important to fix the price of raw jute. It will reduce our suffering along with production cost. Besides, our ports must also be made dynamic in the case of jute export."

Economists say that it is important to establish relations with various embassies to capture the international market.

Prominent economist Prof Anwarul Qadir said, "Government should play a more active role in jute exports. Where we have embassies abroad, our officials should increase liaison in those countries. Our Ministry of Commerce, Ministry of Jute and Ministry of External Affairs have to work together. Arrangements should be made to exhibit jute products in various foreign fairs."

Meanwhile, the Export Development Bureau has ensured various benefits for the export of jute products.

Khulna bureau director Zeenat Ara Ahmed said, "The government has declared this year as 'Jute Year'. We will always strive to ensure that traders get more benefits in the case of jute export."

Read more: Water scarcity puts jute farmers in a pickle
​

Officials said that there are 12 companies producing and exporting jute products in Khulna alone.

 

[Saif]

MoU signed for marketing Bangladeshi jute products in Europe | Business

The Jute Diversification Promotion Center (JDPC) and Centre for the Promotion of Imports from Developing Countries (CBI) have signed a Memorandum of Understanding to market jute goods in the European markets.<p>Executive Director Md Mahmud Hossain signed the MoU on behalf of JPDC while...

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MoU signed for marketing Bangladeshi jute products in Europe
The Jute Diversification Promotion Center (JDPC) and Centre for the Promotion of Imports from Developing Countries (CBI) have signed a Memorandum of Understanding to market jute goods in the European markets.

Executive Director Md Mahmud Hossain signed the MoU on behalf of JPDC while Netherlands Ambassador to Bangladesh Anne van Leeuwen inked it on behalf of the CBI at a function at JPDC office in the city, said a press release.

Under the MoU, entrepreneurs producing home textiles and home decoration will be able to produce and market new design products to European markets as per the market demand.

The MoU will remain effective for the next five years.

A recent study noted that enhancing production capacity and product diversification can help Bangladesh increase its exports to the European Union by an additional $18 billion a year.

The bloc is by far our largest export market as almost half of Bangladesh's merchandise exports are destined for the EU.​

 

[Saif]

https://thefinancialexpress.com.bd/views/columns/jute-diversification-and-value-added-jute-bags

Jute diversification and value-added jute bags
WASI AHMED

The performance of the country's jute sector in innovation and product diversification, notwithstanding progress, fails to live up to the expectations. Despite the remarkable achievement of genome sequencing of jute plants by Bangladeshi scientists in 2010, which positioned Bangladesh as a leader in the global jute industry, required follow-ups are missing. Additionally, the decline in exports of jute goods raises concerns that the country is currently not well-prepared to meet the increasing demand for diversified jute products, especially jute bags, which dominate the market.

Demand for jute goods, especially jute sacks and shopping bags, is on a sharp rise in view of restrictions, even outright bans in many developed and developing countries on the use of bags made of artificial materials such as synthetic fibre or plastic. The reusable jute bags are biodegradable, eco-friendly and long lasting. They are a sustainable alternative to plastic and most other green or eco-type bags that are made of PP (polypropylene a petrochemical by-product) and not biodegradable.

Bangladesh, one of the top producers of raw jut with a share of 1.2 million tonnes in the annual global jute production of 2.86 million tonnes, is missing out on seizing the opportunity as the manufacturing process required for diversified and high-end jute products has not been adequately activated. A news story in a local daily, quoting the International Jute Study Group, reports that global demand for shopping bags is at present around 500 billion pieces, worth approximately $500 billion a year. This is likely to grow manifold once the US, the European countries and China - the major markets of jute bags -- begin to enforce stricter measures against use of synthetic and plastic bags.

It has been learnt that while Bangladesh manufacturers in both the public and private sector are yet to move in a proactive manner, manufacturers in neighbouring India are gaining increased market access through large-scale product diversification and adaptation as per market requirements.

To read the rest of the news, please click on the link above.​

 

[Saif]

Govt working to revive jute sector: Nanak

Textiles and Jute Minister Jahangir Kabir Nanak on Saturday said the government is working to revive the jute sector as per the directives of Prime Minister Sheikh Hasina. The government has a plan to organise a conference of jute farmers at the end of the year in the presence of the premier, he s

thefinancialexpress.com.bd

Govt working to revive jute sector: Nanak
Published :
Jun 01, 2024 19:47
Updated :
Jun 01, 2024 19:47

Textiles and Jute Minister Jahangir Kabir Nanak on Saturday said the government is working to revive the jute sector as per the directives of Prime Minister Sheikh Hasina.

The government has a plan to organise a conference of jute farmers at the end of the year in the presence of the premier, he said while addressing a view exchange meeting with the stakeholders of the jute sector organised by the Department of Jute at the Shishu Academy auditorium, reports BSS.

Jute farmers, mill owners, businessmen and other stakeholders related to the jute sector joined the meeting.

Nanak said the Prime Minister has put special emphasis on jute and jute-made products. It was included in Awami League's election manifesto also with utmost sincerity, and Prime Minister Sheikh Hasina is giving different directives to take all-out steps for multipurpose uses of jute, he added.

He said the government wants to be self-dependent on producing jute seeds.

Lieutenant Colonel (Retd) Mohammad Nazrul Islam Hiru, MP, Dr Anowarul Ashraf Khan Dilip, MP, Farida Yesmin, MP, secretary of jute ministry Md Abdur Rouf, DG of Department of Jute Zinat Ara, police super Mohammad Mostafizur Rahman and Awami League Narsingdi district unit president GM Taleb Hossain, among others, addressed the meeting with deputy commissioner Dr Badiul Alam in the chair.

Later, the minister inaugurated a three-day-long jute fair and Narsingdi Municipality Park.​

 

[Saif]

A symbol of our degradation

It is a rare instance in the world when a country is sending its raw materials—jute in the case of Bangladesh—abroad without utilising it themselves

www.thedailystar.net

A symbol of our degradation
It is a rare instance in the world when a country is sending its raw materials—jute in the case of Bangladesh—abroad without utilising it themselves

Photo: Suzit Kumar Das

A truly unforgettable representation of the poor farmer can be found in the character Gafur from Sarat Chandra Chattopadhyay's short story "Mahesh." While a century has passed, this Gafur is still present today, in the same old form, for the kind of suffering may have changed but the cause has not. And the reason is our prevailing social system.

Over a hundred years ago, Gafur fled his village for the city in the dead of night, to work at a jute mill. He didn't want to go at all. Gafur was deeply worried that Amina, his only child—that too motherless—wouldn't survive in the slums where jute mill workers lived. But he still had to go, because he had committed a terrible crime in a village ruled by a Brahmin landlord: he had killed a cow. It wasn't as if the cow belonged to someone else, it was his own. He had named it Mahesh.

As the story goes, Mahesh was extremely close to Gafur, whose ancestors were weavers. The East India Company had swallowed up the looms, so Gafur had to become a farmer. But he didn't have the materials needed to farm. There was no land, and his plough was broken. He had put his trust on Mahesh, who had grown old. There was a severe drought in the village, and drinking water was hard to come by. Amina had a lot of trouble fetching water from the distant tube-well. She had to walk carefully, lest she touched a high-caste Hindu woman by mistake. On a hot summer afternoon, she brought a pitcher of water, and a parched Mahesh broke the pitcher while drinking. Blinded by anger, ego, and grief, Gafur hit Mahesh on the head with the share of his broken plough. Mahesh died immediately after, forcing Gafur to flee the village.

To read the rest of the news, please click on the link above.​

 

[Saif]

https://www.thedailystar.net/opinion/perspective/news/the-challenges-reviving-our-jute-sector-1750705

The challenges in reviving our jute sector

Jute mill worker Bilkis Ara wipes away her tears as she lies down on the road and rests her head on a piece of bamboo at Notun Rasta intersection in Khulna on April 3, 2019. She, along with several hundred others, has been demonstrating to press home a set of demands, including payment of arrears. Photo: Dipankar Roy/Star

It seems that the present crisis in the state-owned jute mills will hardly be over with the Tk 169.14 crore allocated by the government to the Bangladesh Jute Mills Corporation (BJMC) to pay the workers their dues. This may placate the workers for the time being, but as their other demands, including implementing the new wage scale, cannot be met with this money, there are chances of further unrest. And unless steps are taken to completely restructure the sector, the problems the sector is currently facing will persist.

After the government allocated funds for the BJMC, one of the workers told The Daily Star: "We have been promised (of arrears) on several occasions in the last two months. How can I believe until I get the money?" There are valid reasons for the workers' mistrust. During the last two months, the workers got assurances from the authorities several times that their due salaries would be cleared and other demands met. On May 21, the workers of nine state-owned jute mills in Khulna region suspended their indefinite strike on assurances by the BJMC that a portion of their due salaries would be paid by May 23. But they did not live up to that promise. Similar promises were made in April.

But since the government has already allocated funds, one can only hope that the workers will get their dues before Eid. While the BJMC needs Tk 337 crore, the government contributed only Tk 169 crore. So there remains a deficit of Tk 168 crore. This means that the BJMC will not be able to meet the other demands of the workers because of a lack of fund: the implementation of the National Wage Commission of 2015, payment of gratuities and provident funds of retired workers, and appointment of workers and making their jobs permanent as per the law.

To read the rest of the news, please click on the link above.​

 

[Saif]

Jute sector deserves early revival

For the last two decades, a lot of promises were made by the authorities for reviving the jute industry of the country, which once earned the lion's share of its export revenues through shipment of jute and jute goods. The golden days of this sector started to fade away from the late 1970's mainly

thefinancialexpress.com.bd

Jute sector deserves early revival
MIR MOSTAFIZUR RAHAMAN
Published :
Jun 05, 2024 22:17
Updated :
Jun 05, 2024 22:17

For the last two decades, a lot of promises were made by the authorities for reviving the jute industry of the country, which once earned the lion's share of its export revenues through shipment of jute and jute goods.
The golden days of this sector started to fade away from the late 1970's mainly due to the introduction of man-made artificial fibres, as it triggered huge fall in the demand for jute worldwide.

However, in recent times, the use of inorganic materials like synthetics have been discouraged in countries that are highly sensitive about environment issues.

This trend has paved the way for the revival of the jute sector. As the largest jute producing country of the world, Bangladesh should be in a comfortable position to fetch huge foreign exchange through jute exports but unfortunately this could not be done due to the lack of proper initiative by both public and private sector.

Recently, the Federation of Chambers of Commerce and Industry (FBCCI) said that it would collaborate with entrepreneurs in the jute sector, as well as government and private sector stakeholders, to address the industry's current challenges.

This is a welcome step towards reviving the past glory of jute, which earned the fame as 'golden fibre of Bangladesh' for its cash-generating capacity.

One of the problems of our jute industry is its lack of diversification of products which is crucial to boost exports.

The entrepreneurs should concentrate on more innovation in diversifying their products. Though some small entrepreneurs recently started to produce different varieties of jute goods, the big names in the industry should come forward in such ventures.

The steps, which are urgently required to rejuvenate the sector include withdrawal of 2 per cent source tax on raw jute, implementation of the Jute Wrapping Act 2010 fully, banning of the use of polythene, initiation of appeals against anti-dumping measures, designating jute products as agricultural products, establishing a Jute Sector Development Fund (JSDF) to support the industry, and providing a 30 percent subsidy for modernising jute mill machinery.

To read the rest of the news, please click on the link above.​

 

[Saif]

BJMC is still incurring losses!

Government must overhaul the jute sector, revive its past glory

www.thedailystar.net

BJMC is still incurring losses!
Government must overhaul the jute sector, revive its past glory

VISUAL: STAR

It is surprising that more than four years after the Awami League government closed the 25 state-run jute mills, the Bangladesh Jute Mills Corporation (BJMC) is still counting losses for them. According to a report by Prothom Alo, in FY 2023-24, the corporation incurred a loss of over Tk 180 crore, while over Tk 137 crore was spent on salaries and allowances for employees who are sitting idle. For instance, the Demra-based Latif Bawani Jute Mills Limited, which was shut down in July 2020, is still having to pay its 184 staff members. A similar situation prevails in other closed jute mills. The question is, why has the BJMC failed to take a decision about its idle workforce in all these years?

Back in 2020, the government had promised that all the mills would be reopened after equipping them with modern technologies under different types of ventures such as public-private partnership, etc. It also promised to give jobs to the laid-off workers once the mills reopened. However, we have not seen any such initiatives since. What BJMC did instead was that it leased out 14 of the 25 mills to different private organisations. Unfortunately, half of them reportedly do not even have the expertise to run such facilities, and therefore couldn't start their production. On what basis were those mills leased out then? Also, isn't leasing them out to private entities without modernising them a clear breach of the government promise?

Given the worldwide demand for jute-based products and the potential of this sector within the country, we think the interim government should take urgent initiatives to revive this sector. Of course, if needed, the government can work together with private institutions but there is no alternative to revamping the BJMC so that it can take the lead in this regard. This would also create job opportunities for thousands of workers including those who used to work in the sector and are now living in dire conditions.

Reviving the sector is all the more important because of the global campaign to reduce the use of plastic products. Bangladesh can be a part of this drive by rejuvenating the sector since jute-based products can actually be a great alternative to plastic goods and bags. Our scientists have invented some jute-based products, such as the biodegradable Sonali Bag, which has a great potential. However, we have not succeeded in popularising them due to the reluctance of the relevant authorities. Such attitudes must change.

About the idle BJMC workforce, we think the government should take a quick decision about transferring them to other government factories or institutions. Another option is to let go of these officials by paying them their dues since the BJMC should not be incurring such huge losses year after year. However, the government's long-term goal should be to completely overhaul the BJMC and the jute sector so that the latter can make profits again.​

 

[Saif]

We must not give up on jute

BJMC and government must take measures to revitalise jute.

www.thedailystar.net

We must not give up on jute
Measures must be taken to save the jute industry

Visual:Star

It is extremely unfortunate that the jute sector of Bangladesh, once referred to as the flourishing "golden fibre" of our economy, is now on its deathbed. According to a recent report by this paper, the government has decided to lease out state-run jute mills to textile mills and RMG factories, after failing to lease out more than five of them to private jute entrepreneurs. Experts and industry leaders have expressed that the move will now mark a "dead-end" of the state-run jute industries.

The Bangladesh Jute Mills' Corporation's terms of reference for lease required a 36 months' rent deposit, which proved too high for some bidders. According to the chairman of Bangladesh Jute Goods Exporters' Association, the conditions were too strict as it entailed high maintenance costs, and refurbishing old, unusable machinery in the state-run mills. If prioritising jute-manufacturers were the intentions of the BJMC, then why are we at this point now? The BJMC must answer for its poor planning, inefficiency and lack of incentives to diversify and reform the industry that led us to this moment of defeat.

Workers are reportedly seeing this step as a direct betrayal of the promise made by the BJMC in 2020 before the shut-down, to reopen jute mills, with plans for retraining and reemployment. Since the closure, which laid off 50,000 workers, reports have stated the dire conditions and hardship that former jute workers have been facing, including overdue wages. Now, the latest decision will ensure that thousands of jute workers, who are only specifically skilled in the sector, will be left permanently unemployed.

Given that there has been a resurgence in the interest of jute globally, with the rise of green packaging acts and environmental awareness, we would've expected the jute sector to have another opportunity to rise back on its feet. We are extremely disheartened to see the opposite happening. Why couldn't we revitalise jute, a product that has so much potential and could've played an important role in our economic recovery? We find it difficult to accept the "inevitability" of the situation. We urge the BJMC and the government to prioritise saving the jute sector and its skilled workers.​

 

[Saif]

Does anyone care about the jute mill workers?

At a time when the demand for jute products in the world is increasing, and new private jute mills are being established, government workers are being handed over to the private mills.

www.thedailystar.net

Does anyone care about the jute mill workers?

The government closed all state-run jute mills on July 2 2020, laying off 70,000 workers. File photo: Star

On April 21, we held a human chain programme at the Khulna Shivbari intersection demanding the payment of arrears of jute mill workers and reopening of closed jute mills. At the end of the programme, when everyone was getting on a truck to return to Khalishpur, a worker of Khalishpur Jute Mill named Kohinoor Begum (age 51/52 years) grasped my hand and said, "Baba, I will not get on the truck."

I was a little surprised and asked, "Why? How will you go?"

She replied, "I will walk around a bit. I cannot beg on familiar streets."

Kohinoor Begum, a worker at Khalishpur Jute Mill No 1, roamed around the crowded city seeking help. Other workers left for home after finishing the programme. But her hand, which was raised up earlier to claim her debt, went down asking for assistance.

The situation of a large number of workers, particularly women and elderly workers, in Khalishpur region, is similar to that of Kohinoor Begum. They are now helpless despite being skilled workers. After the closure of the jute mill, they have been living the life of a beggar without having a regular job. Their bold looks have faded away; many are almost unrecognisable today.

Alamgir, a former employee of Star Jute Mill, used to earn Tk 4,800-5,500 per week working six hours a day. Now, after 12 hours of night duty as a guard in Khulna city (9pm - 9am), he gets a monthly salary of only Tk 7,000. Additional six hours of duty in the day time provides him with Tk 5,000. How can a family survive on so little?

Today, a skilled jute mill worker of Khalishpur has to work as a night guard in the city. There is no security in their lives. That is why Reshma, daughter of Khalishpur Jute Mill worker Badsha, could not get admission in a new class despite being first in her class.

Many helpless workers have joined private jute mills where the daily allowance is Tk 180-220. They get only 20-30 minutes of meal break. There are no holidays. They don't have the right to form a trade union to represent their interests. As a result, workers have no freedom of speech.

If a worker has an accident while working, the mill authorities do not take any responsibility for it. There is no maternity leave. During the Covid-19 lockdown, almost all government and non-government workers in the country were given allowance, but no worker in any private jute mills received such assistance.

The safety situation of women workers is extremely poor. Many female workers are being sexually harassed, especially while working in the C-Shift (10pm to 6am). But there is no one to look after these issues. If you complain, it is not taken into account.

The largest private jute mill in the Khulna-Jashore region employs over 10,000 workers. The same situation prevails there. The union that the owner has formed to show the mill's foreign buyers is of no use to the workers. Rather, they work for the owner.

The skills acquired by the workers who have been working in the state-owned jute mills for 15-20 years are being sold today to the private sector at a very cheap price. Many workers, who now get one-third of the government's wage while working almost double, strongly believe that there is some type of machinations at work behind this whole process.

At a time when the demand for jute products in the world is increasing, and new private jute mills are being established, government workers are being handed over to the private mills by closing down the government owned mills. The plan is to exploit these helpless labourers because they don't know any work other than jute mill work.

On July 2, 2020, amid Covid lockdown, the government announced the closure of 25 jute mills and laid off 70,000 workers. Without paying the dues, the workers were evicted from the colony in clear violation of the Bangladesh labour law.

About 11,000 workers of five jute mills including Khalishpur-Daulatpur jute mill of Khalishpur haven't yet received their arrears. Even if the payments of transfer workers are released now, they will not get it before Eid. Having to leave their earnings with the government, the workers are now starving.

Idris Ali, an elderly worker sitting at the mill gate, said in grief one day, "No one cares about us, the government has snatched our jobs, and now the Almighty has also turned his face away from us."

Ruhul Amin is the coordinator of Sramik-Krishak Chhatra-Janata Oikya Parishad. This article has been translated from Bangla by Tanveer Ahmed Chowdhury.​

 

[Saif]

End of state-owned jute mills: why close when you can reform?

So it’s official now. The government is going to shut down all 25 state-owned jute mills operated by Bangladesh Jute Mills Corporation (BJMC) and lay off about 25,000 workers involved with them.

www.thedailystar.net

End of state-owned jute mills: why close when you can reform?

Activists of Left Democratic Alliance, a coalition of left-leaning political parties, protest the closure of state-owned jute mills in a human chain formed in front of Jatiya Press Club on June 28, 2020. Photo: Amran Hossain

So it's official now. The government is going to shut down all 25 state-owned jute mills operated by Bangladesh Jute Mills Corporation (BJMC) and lay off about 25,000 workers involved with them. The prime minister approved the decision on Thursday, according to UNB, putting an end to speculations following an announcement by the textiles and jute minister to that effect last Sunday. Unless there is a reversal of decisions which is unlikely at this point, we're going to witness a historic moment for Bangladesh's jute industry, although it's not the one we were promised, nor can we let it pass without proper scrutiny of what has led to this moment and what we could have done to avoid it.

Here's what we know so far: the wages and benefits of all current workers (24,886) and the dues of 8,956 already retired workers of those jute mills will be paid within "the quickest possible time", said the principal secretary to the prime minister. A Tk 5,000-crore fund will be allocated for this purpose. On average, each worker will get Tk 13.86 lakh, and the payments will be made directly to their bank accounts. As for the future of the laid-off workers, we are told that they would be trained and "given priority" in recruitment to the mills when they are "modernised" and "reopened" under Public-Private Partnerships, or some other joint ventures, or through leasing out to third parties. Details in that department are still a little sketchy.

The official narrative pins the blame for the present situation on BJMC's lack of profitability, saying it had recorded a cumulative loss of Tk 10,674 crore from 1972 until 2018-19 and cannot be viable in the face of competition from private mills. This is no doubt a huge red flag for any industry, especially in the middle of a pandemic when even profit-making industries are struggling. But what the officials have conveniently glossed over is the reason behind this turn of events. BJMC may have been a rudderless ship but it's not unmanned. It's run by real people, who have let it rot in a bottomless pit of corruption, mismanagement, lack of coordination, inefficiencies, and so on.

So what we are not being told is that loss or lack of profitability, as an excuse for outsourcing production to the private sector, is just a semantic sleight of hand to let these people and their enablers off the hook. We've heard the same excuse peddled in the past, trying to justify occasional closure or privatisation of some mills. We have heard it when the workers went on hunger marches to demand their dues. Lack of profitability is a long-worn-out excuse by now, and it's frightening that it would be used to pass death sentence to a sector that, if properly run, has so much to offer to this nation.

Jute is called "golden fibre" not just because the fibre is golden. It's called so because it also offers a golden opportunity to turn our economy around. Jute is the second most important natural fibre in terms of global consumption after cotton, and Bangladesh has ample to offer. The country's jute manufacturing sector, one of its oldest traditional manufacturing sectors, emerged in erstwhile East Pakistan in the early 1950s, with the founding of Adamjee Jute Mills. During the 1960s and 1970s, this sector accounted for a major share of the national income. In May 1972, after Bangladesh became independent, the government nationalised the industry to streamline exports. Ironically, the main reason cited for this move was to "check corruption" in the sector and ensure fair prices for jute producers. In 1973, its contribution in the overall national export was 89.9 percent. It was a golden time for the golden fibre.

In the 1980s, however, it began to lose its lustre, after synthetic materials like polythene and plastics were introduced. This led to a gradual decline in its share of the national export, overall foreign exchange earnings and the Gross Domestic Product (GDP). The rise of the RMG sector, regressive policies of successive governments and the push for privatisation were also responsible for the decline. Adamjee Jute Mills was closed down in 2002. Today, as far as public policies go, jute exists as a glorified relic from the past. After a brief period of euphoria over the promulgation the Mandatory Jute Packaging Act, 2010, which paved the way for compulsory use of jute packaging for 17 products, things have come full circle, culminating with the closure of all state-owned jute mills in one fell swoop.

The history of jute in independent Bangladesh is thus one of unutilised potential and unfulfilled promises. From the wholesale nationalisation in 1972 to the wholesale denationalisation in 2020, the trajectory of the industry shows not just its declining appeal or performance through the years. It's also, importantly, an indictment of the stop-start approach of successive governments that either did too much or too little, ignoring the long-term consequences of their action. So it's little wonder that they have chosen an easy exit when push came to shove, instead of taking up the strenuous task of reforming it from the ground up.

The official narrative about closing and "reopening" the mills under private arrangements and reemploying the workers raises some questions: how can the workers trust this promise when there is a well-documented history of the authorities failing to give them their rightful dues or break the all-powerful hold of syndicates over this industry? What guarantee do they have that their dues will be paid in full or they will be given proper wages in the privatised mills? Can denationalisation eradicate the culture of corruption and mismanagement so entrenched in the industry? Why were the calls for modernisation to make those mills profitable ignored when it is obvious that it would have cost the government a lot less than its Tk 5,000-crore settlement package? Why did the government take this decision especially when there are signs that jute is making a comeback finally?

The last point is particularly significant. According to data from the Export Promotion Bureau (EPB), exports of jute and jute products increased by about 4 percent in the first 11 months of FY 2019-2020. During the same period, exports of readymade garments declined by about 19 percent and exports of leather goods declined by about 22 percent. In the process, the jute sector surpassed leather to take the second place in Bangladesh's overall export trade. Meanwhile, the RMG bloodbath continues apace as global buyers withdraw orders or refuse to pay the manufacturers. Many migrant workers have already returned to Bangladesh after losing their jobs in the pandemic, making a big dent in its remittance earnings. Experts say in these difficult and changing times, sectors like livestock, jute, and agriculture can play a major role in our economic recovery. Why, then, is this regressive move to close so many jute mills at once which may set us back years, if not decades?

It's worth noting that in recent years there has been a resurgence of interest in jute globally, thanks to the rise in environmental awareness and greening strategies being adopted to combat climate change. In the coming days, there will be a huge demand for jute products and Bangladesh can be a global leader in this sector. The private mills are stepping up to the task as best as they can but we need those 25 public mills to be up and running again. We need them to be refurbished with modern equipment to start making profits. And we need those laid off workers to be back in the game, both for their sake and the sake of the country. Proper strategies, efficient management and diversified jute goods are key to success in this scenario.

The jute industry stands at a crossroads—we need to choose our next path very carefully.

Badiuzzaman Bay is a member of the editorial team at The Daily Star.​

 

[Saif]

Steps to be taken to promote jute packaging

Says environment adviser

www.thedailystar.net

Steps to be taken to promote jute packaging
Says environment adviser

Photo: Collected

Environment, Forest, and Climate Change Adviser Syeda Rizwana Hasan has said steps will be taken to promote the extensive use of jute packaging through the proper implementation of the Mandatory Use of Jute Packaging Act, 2010.

A discussion with traders will take place on this issue by December. The Ministry of Environment will provide policy support to increase the use of jute products.

The environment adviser made the remarks during a discussion session titled, "Solving Problems to Protect Environment Friendly Jute Sector and Jute Industry", held at the Bangladesh Jute Mills Association's conference room in Motijheel today.

Rizwana highlighted the importance of the jute sector in protecting the environment. She called for urgent measures to address the challenges faced by the jute industry and emphasised the need for joint efforts between the government and private sectors to sustain the industry.

Brig Gen (retd) Dr M Sakhawat Hossain, adviser to the Ministry of Textiles and Jute and the Ministry of Shipping, said initiatives would first be taken to ensure the use of jute packaging for rice, paddy, and wheat.

He stressed the need for everyone's cooperation in promoting jute-based products.

The session was chaired by Mohammad Abul Hossain, chairman of the Bangladesh Jute Mills Association. Representatives from various jute mills and industry experts discussed the current state of the jute industry and possible solutions to its challenges.

Later, the Environment Advisor also held a discussion session with the Auto Bricks Owners' Association.​

 

[Saif]

Plastic rules amid lax compliance with 14-yr old jute packaging law

Mandatory jute packaging for nearly two dozen of food stuff now falls almost flat thanks to slack implementation of the law.

www.thedailystar.net

Plastic rules amid lax compliance with 14-yr old jute packaging law

Rice sacks, mostly plastic, piled up at a wholesale shop at Boro Bazar in Khulna. The photo was taken recently. Photo: Habibur Rahman

Mandatory jute packaging for nearly two dozen of food stuff now falls almost flat thanks to slack implementation of the law.

Other factors responsible damaging the initiative to promote jute and protect the environment include abrupt inclusion of food items to the jute packaging list without assessing the practicality and the availability of jute sacks and their cost effectiveness compared to plastic ones.

On top of all, officials say the initiative missed a firm political commitment.

Economists, environmentalists and sector people now call on the authorities seeking a sincere effort to apply the law on a priority basis rather than a full implementation.

In 2010, the government passed a law mandating the use of jute sacks for the storage, supply and packaging of rice.

In around five years, jute sacks for rice packaging gained a footing, with millers using jute bags for rice packaging.

However, many millers and traders then started to shift to plastic bags again as imported rice from India arrived in plastic packaging.

The Mandatory Use of Jute Packaging Act, 2010 was enacted to ensure the use of jute bags for 19 essential products, including rice, wheat, maize, pulses, and flour.

In 2017, other kitchen items such as chilli, turmeric, onion, garlic, ginger, coriander, and potatoes were added to the jute packaging list. By 2018, jute packaging coverage was expanded further to include poultry and fish feed.

According to the law, the penalties for non-compliance include up to one year in jail, a maximum fine of Tk 50,000, or both.

Businesspeople acknowledge the environmental hazard of plastic bags, but they wonder whether there would be enough jute bags to meet the local demand. Besides, they question the practicality of mandating jute packaging for some food items as jute sacks absorb moisture quickly, potentially leading to damages like spoiled flour or sugar.

Abdul Barik Khan, secretary general of the Bangladesh Jute Mills Association, criticised the lack of enforcement, saying, "While many are aware of the environmental harm caused by plastic, there has been little commitment from past governments to enforce this law."

Khan believes proper implementing the law could revive the jute industry, benefit millions of jute farmers and the environment.

He said the government should make jute bags mandatory in all rice mills, with license cancellation penalty for non-compliance.

In the meanwhile, a senior official of at a major food importing and processing firm doubted the country's ability to meet the demand for jute sacks.

The official at the food import firm said plastic packaging remains a more practical option due to its lower cost and durability.

In 2012, a writ petition was filed with the High Court. The court issued a stay order, allowing the continued use of plastic bags.

Visiting several kitchen markets in Dhaka's Mirpur, Mohammadpur and Karwan Bazar recently, this correspondent found that plastic sacks were being widely used for rice packaging.

AKM Khorshed Alam, president of the Bangladesh Auto Rice Mill Owners Association, said a few traders currently use jute sacks.

He said the past government did not take stringent measures to implement the law.

The Daily Star approached local major conglomerates including Akij, ACI and Rashid Agro-Food Products Ltd for comment on jute packaging for their rice brands. But they were not available for comment on this topic.

Abdur Rauf, secretary of the Ministry of Textiles and Jute, acknowledged that the law has not been enforced over the past decade but expressed hope that the situation would change with greater political will.

He said that efforts are now on, starting with supershops, and a meeting with jute sector stakeholders was held last Tuesday where a decision to supply jute bags quickly to meet demand was taken.

Syeda Rizwana Hasan, adviser to the Ministry of Environment, Forests and Climate Change, at an event yesterday said that initiatives will be taken to make widespread use of jute packaging through the proper implementation of the law.

"Our ministry will provide all types of policy support to businesspeople to increase the use of jute products," said Rizwana, also an environmental activist and prominent enviromental lawyer.

Textiles and Jute Adviser Brigadier General (Retd) M Sakhawat Hossain at the same event said initiatives will be taken first to ensure the use of jute sacks of paddy, rice and wheat.

Khondaker Golam Moazzem, research director of local think tank Centre for Policy Dialogue (CPD), said the past government could not fully implement the law due to various operational weaknesses.

However, the current adviser to the Ministry of Environment, Forests and Climate Change has been working on this issue for a long time. "I hope she will take appropriate initiatives to fully implement this law."

Golam Moazzem said local jute mills probably do not have the capacity to meet the demand. "That is why, we need to be prepared first before the implementation."

Another thing is, he said, it will be easier to implement the law if it goes to priority basis, instead of full implementation for all products.​