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Jute stick carbon

Bangladesh’s black gold

Mohammad Zoglul Kamal
11 Dec 2021 00:00:00 | Update: 11 Dec 2021 10:39:30
Bangladesh’s black gold

Bangladesh recorded export earnings of more than $4 billion in the last two months, largely thanks to the apparel sector accounting for 80 per cent of the earnings. But in the July-November period, our jute sector registered a 17.45 per cent negative growth, as its earnings fell to $457 million. Now, that’s a matter of serious concern.

In the last fiscal year, Bangladesh produced 90.91 lakh bales of raw jute (the industrial term for jute fibre) and earned Tk 2,369.45 crore exporting jute goods, according to the annual report of the Department of Jute.

Jute is the most important vegetable fibre next to cotton used since ancient times in Africa and Asia to provide cordage and weaving fibre from the stem and food from the leaves. But contrary to acute requirements of cotton cultivation, jute is a rain-fed crop with little need for fertiliser or pesticides.

With the livelihood of about 25 million people dependent on jute-related activities, the importance of the jute sector cannot be overstated for Bangladesh’s economy.

Stakeholders have been emphasising the diversification of products to bring back the golden days of the jute sector – and we have ample options.

From waste to export

Jute sticks are usually used as fuel and fencing material as substitutes for wood. But carbon and charcoal production has pushed up the demand and prices, helping farmers in the rural areas make some quick bucks. In Pabna, for example, farmers said they sold a maund (37.32kg) of jute sticks for around Tk 3,500.

Charcoal from jute sticks has big demand abroad. The carbon produced from the stalks can be an important export product used as raw material in industries, including cartridge of printers, charcoal and cosmetics. Activated carbon can be made from materials with high carbon content, such as coal.

High-quality jute stick ash can be used to produce tooth-cleaning products, anti-toxin drugs, carbon paper, facewash, dry-cell batteries, dried ink of photocopier machines and other chemicals. Ash is widely used for water filters, in gas masks, and to remove odours, according to a 2019 study by the Bangladesh Enterprise Institute (Reviving Exports of Jute Products from Bangladesh). The largest end-use sector for the product is water treatment, accounting for nearly half of the total industry share.

Bangladesh provides 7 to 20 per cent cash incentive on jute products and sticks carbon export.

Since Bangladesh gets duty-free market access of jute stick carbon to China, the quantity of charcoal exported can be increased significantly. There is considerable demand for jute stick charcoal and ash or dust powder in Brazil, Korea, Japan, Malaysia, Hong Kong, Turkey, UAE, Germany, the United States, Australia, Canada and Mexico. Bangladesh can realise the potential of this product which will depend on maintaining international standards.

The production of jute charcoal dusting powder began in 2012 in Bangladesh. A Chinese man reportedly assisted in the process and showed how to export the item to China. Many factories sprung up in the following years. In FY 2015-16, Bangladesh earned around Tk 14 crore by exporting jute stick charcoal powder or dust to China, which has an enormous demand for high-quality ashes for industries and charcoal as fuel. According to EPB data, in FY18, the country earned over $3 million by exporting jute charcoal to China alone.

Billion-dollar market

Bangladesh Charcoal Manufacturers and Exporters Association (BCCMEA) said that the country exported 4,182.27 tonnes of jute stick charcoal powder in FY19-20 and fetched $2.9 million. In FY20-21, jute sector earned $1.16 billion, registering 31.63 per cent export growth.

Industry sources said that it would be possible to produce 2,50,000 tonnes of charcoal by using half of the three million tonnes of jute sticks, and this product alone can fetch Bangladesh about $200 million a year from the international market. Exporters said that each tonne of charcoal was traded at around $800 on the international market.

On the other hand, stakeholders claim that if half of the total product can be used to produce high-quality ashes, then the export earnings can go up to $3-3.5 billion. It is estimated that with proper support, this flourishing industry can create direct employment for more than 20,000 people and indirect jobs for two million more.

Currently, factories in Jamalpur, Mymensingh, Faridpur, Madaripur, Pabna, Magura, Jashore, Rajbari and other places export more than 800 tonnes of charcoal each month and earn an estimated Tk 60 crore.

The global activated carbon market size reached almost $3.93 billion last year and is expected to grow to nearly $6.24 billion by 2026, growing at a CAGR (Compound Annual Growth Rate) of 8 per cent in 2022-2027 forecast period. The increasing demand for water filtration and air purification are the leading market trends for the activated carbon industry, according to Expert Market Research.

BCCMEA said that an estimated 1.7 million metric tonnes of jute sticks are typically left unused. It is possible to produce 4,50,000MT charcoal from these unused jute sticks that can potentially fetch an estimated Tk 2,800 crore.

Carbon future luminous

The shipping lines in 2017 suspended transporting jute stick charcoal from the country to destinations like China, Taiwan and Cambodia after a number of fire incidents. Following an intervention by the Ministry of Textiles and Jute, only a few shipping lines have been transporting the item labelling as ‘dangerous goods’ and charging additional fees.

The charcoal is produced by burning dried jute sticks at a certain temperature in special furnaces. Later, they are crushed to powder – jute stick carbon – and cooled for a specific period. Unless a strict cooling system is maintained, chances for fire incidents increase.

Local producers said that additional levies imposed by the shipping lines and poor demand caused by the lingering Covid-19 pandemic were affecting them.

Bangladesh still lacks any proper refining system for the fine product or activated carbon. BCCMEA says it is optimistic that once we develop the capacity to produce activated carbon, the need for importing the item will end.

The bottom line is that if Bangladesh wants to revive and use jute as an important export item, it needs to encourage and actively promote the development of high-end products, along with age-old jute items. Instead of low-end regular charcoal, Bangladesh should produce and export activated charcoal, which is a high-end product that would help earn more than three times foreign currency from this product.

Proper attention and policy support can not only generate a good number of jobs and fetch more foreign currencies but also allow the government to earn more tax revenue.

 

(The writer is a journalist. He can be reached at zoglulkamal@gmail.com)

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