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[🇧🇩] Jute Industry in Bangladesh
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G Bangladesh Defense

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).

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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.​
 
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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.

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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.
 
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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.

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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.​
 
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Jute diversification and value-added jute bags
WASI AHMED

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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.

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

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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.
 
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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
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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.

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The challenges in reviving our jute sector

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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.

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