[🇧🇩] Jute Industry in Bangladesh

[Saif]

BJMC is still incurring losses!

Government must overhaul the jute sector, revive its past glory

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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.

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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.

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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

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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.​

 

[Saif]

Fresh focus on jute packaging

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

thefinancialexpress.com.bd

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

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.​

 

[Saif]

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.

www.thedailystar.net

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.​

 

[Saif]

পাটের দাম বাড়লেও খুশি না কৃষক, চড়া বাজারে লাভ ব্যবসায়ীর

‘আমরা কৃষকদের একসঙ্গে সব পাট বিক্রি করতে নিরুৎসাহিত করি। কিন্তু টাকার প্রয়োজনে তারা উৎপাদিত সব পাট একসঙ্গে বিক্রি করেন।’

bangla.thedailystar.net

পাটের দাম বাড়লেও খুশি না কৃষক, চড়া বাজারে লাভ ব্যবসায়ীর

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।

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।'​

 

[Saif]

Jute millers struggling amid export slump

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.

www.thedailystar.net

Jute millers struggling amid export slump

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.​

 

[Saif]

Reopening of state-owned jute mills demanded

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

www.newagebd.net

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

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.​

 

[Saif]

Initiatives taken to diversify jute products: Bashir

Textiles and jute adviser Sheikh Bashir Uddin on Wednesday said that initiatives had been taken to diversify jute products while the problems surrounding the jute sector would be resolved very soon...

www.newagebd.net

Initiatives taken to diversify jute products: Bashir
Bangladesh Sangbad Sangstha . Dhaka 05 February, 2025, 22:31

Textiles and jute adviser Sheikh Bashir Uddin on Wednesday said that initiatives had been taken to diversify jute products while the problems surrounding the jute sector would be resolved very soon.

He came up with such remarks at the inauguration of the four-day multipurpose jute products fair organised jointly by the Department of Jute and the Jute Diversification Promotion Centre (JDPC) held at Laboni Point in Cox’s Bazar sea beach on Tuesday, said a commerce ministry press release on Wednesday.

The fair is being organised with the slogan ‘Come and change the country, change the world.’

Bashir said that the government had been organising diversified jute fairs at different places of the country while the month-long Dhaka International Trade Fair 2025 ended successfully a few days back.

Being inspired from that, the fair on jute products is being organised in Cox’s Bazar. The participants at the fair are happy and they are hoping for growth. The government is also making necessary arrangements for imparting them training.

Mentioning that more fairs will be organised at the divisional and district levels, Bashir mentioned that the problem related with the materials for manufacturing jute products would be resolved.

Reassuring that the prices of commodities would not increase during the ensuing holy month of Ramadan, Bashir, also in charge of the Ministry of Commerce, said that a detailed discussion was held recently in this regard at a business conference.

‘Everyone is working together. So, I hope that the prices of goods in the market will not increase by any means during Ramadan. The supply of oil, sugar, dates, chickpeas, fish, chicken, eggs and seasonal vegetables will remain intact,’ he added.

Director (administration) of the Department of Jute Satyakam Sen, deputy commissioner Mohammad Salahuddin and superintendent of police Muhammad Rahmat Ullah were present on the occasion.

Earlier, the adviser visited various stalls at the fair and talked to entrepreneurs about the potentials of jute products. There are some 33 stalls at the fair while the fair will remain open from 4:00pm to 8:00pm every day until February 8.​