Revival of the jute sector

Jute is not just a cash crop in Bangladesh. Jute is also ingrained into Bangladeshi culture that its leaves feature on the national emblem, and the government has a Ministry of Textiles and Jute. Jute, dubbed as the golden fibre, was once the largest foreign exchange earner for Bangladesh.

Export of jute declined as the golden fibre gave way to its synthetic alternatives, which were cheaper and more durable. As a result, traditional jute products like gunny bags, jute twines, and hessian cloth faced tough competition in the international market. Garments and a few other items stole a march on jute and are now the country’s major foreign currency earners through exports. However, the global outlook for jute has been changing as the harmful sides of synthetic, especially plastic products, have become evident to environment-conscious people. Since jute is a natural product, its appeal as a wrapping material is also increasing. According to a study, shopping bags made of jute are in high demand in the international market. And the market for other jute-based products is also growing by leaps and bounds. As the producer of the best quality jute in the world, Bangladesh should be able to claim its rightful share of this market. However, that has not been the case.

According to a report published in this newspaper on Wednesday, certain factors, including lack of adequate government initiatives, political crises in export destinations, freight fare hikes, and domestic syndicates, are holding back the jute sector. Be that as it may, there are signs of recovery. According to Export Promotion Bureau (EPB), export growth surged 31 per cent to $1.16 billion in FY20-21 compared to the previous fiscal year. On a less than positive note, exports decreased 17.45 per cent to $457 million in July-November this FY compared to the same period of the previous year.

With the world becoming more environmentally conscious, the demand for biodegradable fibre like jute is increasing. However, the government should be more proactive in taking advantage of the increasing demand. Unfortunately, according to the exporters, the authorities concerned have failed to live up to the expectations. Our competitors are showing a much more dynamic attitude. Bangladesh’s main competitor India imports raw jute from Bangladesh, and after making finished products, they export to various destinations in Europe, US, Canada, and Australia. Stakeholders have identified the rise in shipping costs as one of the main reasons for a decline in export earnings from jute. Adding to the sector’s woe is that the currencies of Turkey and Iran, key export destinations for Bangladeshi jute goods, are depreciating as they face US sanctions.

However, as the report says, citing jute mill owners and exporters, the unholy syndication phenomenon is at the heart of the problem faced by the sector. Middlemen are active in manipulating the market and depriving the farmers. Unlike its competitors, Bangladesh has not done enough to check the unscrupulous practices. According to the observers, India has done everything for its industry and farmers. While Bangladesh has laws to protect farmers from syndicates, the problem lies in the proper implementation of the laws. If the farmers continue to get a raw deal as a reward for their hard labour, how long could they continue cultivating the crop sustainably?

We believe that if the government takes the necessary initiatives, jute can play a crucial role in expanding the export market, earning foreign currency, safeguarding the environment, and generating employment. The government needs to conduct more research, formulate new regulations, reform jute mills, and impose eco-tax on polythene to encourage people to use jute products. Bangladesh has a huge potential to diversify its jute products further and realise higher value-added from its jute resources. Around 750 small and medium enterprises in the country are currently producing various types of diversified products like bags, carpets, shoes, saris, curtains, etc. The markets for these commodities are expanding in

domestic and foreign markets.