Diversifying jute products

Around 1896, Maikop Kurgan of Russia discovered a straw or tube for drinking in the Bronze Age. Since then, many people have invented a variety of metal, silver, and copper straws. The Americans invented the paper straw. Then, in 1910, plastic drinking tubes, or straws, took over the world market. These straws are hazardous to one’s health. It is hard to understand why we keep using these plastic straws, despite knowing about their detrimental impact on the environment. According to the American Food Service Packaging Institute, 250 million straws are used every day in the United States.

Fazlur Rahman, a young Bangladeshi entrepreneur, is combating disposable plastics. He started by making bamboo straw and advertising it on his Facebook page, Go Green Bangladesh. Fazlur Rahman, a Jessore native, sells bamboo straw to the Tree House restaurant in Banani, which utilizes it in the restaurant. In Vietnam, this sort of bamboo straw is also used. The restaurant owner advised Fazlur Rahman to make jute straws because his bamboo straws were more expensive. Fazlur Rahman put in a lot of effort and succeeded in making jute straws. In that restaurant, jute straws are now in use. However, this was not a simple task.

This story tells us the range of tasks that Bangladeshis can perform. In this way, we can make many more different things from jute and set a unique example for the rest of the world. We all know that jute is known as the golden fiber of this country. Only as demand for jute increases and the country gains foreign currency does it become more expensive. Hessian fabric (hessian is a plain-weave, more delicate quality fabric made wholly of jute with a single warp and weft interwoven and lighter in weight than traditional sacking cloth) and jute sacks are produced in large quantities in our country. Other items made from jute include bags, baskets, men’s and women’s shoes, jewelry, suits, sweaters, toys, a variety of handicrafts, wedding accessories, sarees, jute denim, shirts, Panjabi, vests, file covers, carpets, floor mats, table mats, runners, sofa covers, and garments made from jute fabrics, jute-cotton fabrics, fibers, and yarn. Bangladesh is known for producing 150 different jute products. The majority of the products are exported.

Since jute is eco-friendly, foreigners are extremely fond of jute products and use them regularly. As a result, jute products are in high demand in the international market. However, jute product entrepreneurs in Bangladesh claim to face harassment while exporting jute products overseas and doing jute product business in Bangladesh. They are confronted with numerous challenges in this instance. When jute products are exported abroad, the government provides incentives to the business owners. While it is meant to be delivered within 180 days, it has not become available even within a year. You will need an EXP or a bank’s authorisation to transfer products internationally. To grant this approval, banks require the buyer’s credit report. Entrepreneurs must spend 15-20 thousand taka for this, and raising it can take 15-20 days. This has a significant negative impact on the company.

Entrepreneurs also say that they bought the yarn for maybe 130 taka. After two months, it was seen that the yarn price had risen to 200 taka. But in other countries, the price of yarn does not increase suddenly. A fixed price lasts two years. It costs 10–12 thousand taka to send one goods truck to Chittagong port. It is often seen that the truck’s rents rise to 30 thousand takas for no apparent reason. Everyone knows about jute cartels. They increase the price by creating an artificial crisis in the market by keeping jute in stock. Trade licenses must be renewed when there are product orders or a business in operation. However, this should take about 2-3 days. It takes a month to get the license instead.

The government has made it a policy to charge 0 per cent VAT on exported goods. However, you must pay to submit a 0 per cent return to that VAT office. Another government policy exempts 100 per cent of exported items from paying income tax. As businesses bring in foreign cash from export, the government has provided them with this facility. You must, however, pay for the paperwork. For the use of electricity in a factory producing 100% export products, the government has reduced the VAT on electricity bills to 0%. However, those entrepreneurs claim that working in a power office is fraught with inconsistencies. Clearance from the Department of the Environment is frequently necessary. The Department of Environment often takes six months to issue this certificate. Since the pandemic started, shipping expenses have tripled. As a result of the numerous challenges, many people who come to do this business lose interest and eventually shut it down.

Many reputable companies create or train entrepreneurs. They are also interested in jute products. For example, the international non-governmental organization “Care” provides training to those who work with jute. They link trained entrepreneurs with foreign buyers and sell their products internationally. Midas has been working with female entrepreneurs for a long time. Before the Covid-19 pandemic hit, they began providing training on jute products. Nowadays, jute shoes or other items are used in five-star hotels and by various airlines abroad. With this in mind, they have trained women entrepreneurs in this regard. Many are doing this with training from there. BJGFA was established in 1960 to promote jute products in the world market. There are 266 members in the group. This organization also provides entrepreneurship training and hosts a jute fair in Dhaka. This year’s fair was held in March. 35 stalls displayed over 150 different varieties of jute items.

Where there is so much potential for jute products, all parties involved must work together to figure out how to solve the challenges. Entrepreneurs and linked organizations must have a business attitude. We must establish an environment that is conducive to business. No difficulty can stand in our way if we can work with a compromising mindset. Entrepreneurs say complex regulations need to be relaxed. We must create a conducive working atmosphere by minimizing the obstacles to the greatest extent possible. The positive rules and regulations of the government have to be followed.

There are rules for taking some samples when going to fairs abroad. Even after delivering these to the international courier service, the merchants carry some goods in their luggage. They were subjected to numerous forms of harassment at the Bangladesh airport with these goods. Traders in other nations, on the other hand, claim that they are not subjected to the same level of harassment. Instead, they are encouraged to bring goods to similar fairs at the airports of their respective countries. Therefore, the issue of harassment at the airport regarding the export of goods must be put an end to.

India buys Bangladeshi yarn, adds value, and sells it for five times the cost. But, if there was a business environment here and we didn’t sell that yarn to India, we might add value and sell it for a profit. Many factories and jobs would be generated as a result of this. Then many factories and jobs would be created here.

The quality of jute in our country has improved. As golden as it looks, its tensile strength is also much higher. It may be used to create a wide range of items. Earlier in our country, jute sacks were used to contain rice or other things. Plastic or other bags are now commonly used. Every day, the average person uses five polythene bags at the grocery store. However, if jute sacks or bags were used in all of these circumstances, the country’s money would remain, and our environment would improve. People will be obliged to use jute if the government imposes any restrictions regarding it. If discarded after use, jute bags or sacks can also be reused for longer. If discarded after use, they will biodegrade into the soil.

When it rains a little in Dhaka city, waterlogging occurs. Experts say that the main reasons for polythene bags and products often lie here and there. As a result, the water cannot go down properly when it rains. So, using jute bags or other things made of jute will save the environment and the farmer. Jute business will be good at home and abroad. The country’s money does not have to be sent abroad. Banks do not want to lend without a profitable business and a good reputation. Even if banks provide a loan, the interest rate is much higher. In addition, banks do not value small entrepreneurs or do not want to lend. The government needs to pay attention to all of these.

Domestic buyers are also interested in jute products. In the country, various multinational companies, corporate organizations, government and non-government organizations, educational institutes, business organizations, and various other organizations buy jute products from time to time. It can be seen how jute products can be used in those institutions. So policymakers should think about the issues in this way, and many solutions will come out of this.

The writer is a freelance columnist. She can be contacted at [email protected]