Reviving the jute sector

Jute is not just a cash crop in Bangladesh. Jute is so ingrained in Bangladeshi culture that its leaves feature on the national emblem. The golden fibre was once the country's major export earner. But the situation is far from being ideal at present. There has been must talk about its potential but the revival process has been slow. State-owned jute mills are making losses every year. Jute cultivation is also no longer a profitable venture.

On a more promising note, there are distinct signs that the past glory of jute, the ‘Golden Fibre of Bengal’, may stage a comeback soon. Bangladesh has sought foreign investment in Bangladesh’s jute sector. Due to the growing popularity of organic products worldwide, environmental awareness, and people’s interest in jute and jute products have shot up.

However to regain the lost glory days of the golden fibre the sector needs policy support from the government. According to a report published in The Business Post yesterday, leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) have called for the creation of a low-cost fund for the jute sector to provide loans to entrepreneurs at 2 per cent interest rates. FBCCI believes that a low-cost fund, like the Export Development Fund (EDF), is currently the only way to revive the nation’s jute industry. The apex trade organization also urged the government not to impose taxes on export-oriented jute products.

They made the call during the first meeting of the standing committee on jute and jute products, held at the FBCCI office in the capital on Tuesday. At the meeting, FBCCI Vice-President Amin Helaly said that now is the perfect time to revive the jute sector as the global demand for the golden fibre has been increasing due to the ban on plastics in different countries.

We believe that the FBBCI statement has merit. A low-cost fund would be a realistic step and definitely help reinvigorate the sector. In the wake of the stagnating performance of the sector for quite some time, a low-cost fund, may bring cheers to this highly prospective sector.

Jute is not only our past glory but can also become a golden future. If adequate steps are taken the golden fibre can be the new growth driver of Bangladesh's economy. To ensure a flourishing jute sector, the government should create a fostering culture. The government should focus on establishing more research and development centres in collaboration with other stakeholders. These centres would focus on product development and provide new technology to increase efficiency and productivity. Also, the government needs to take steps to encourage the use and production of diversified jute products.

The demand for jute sacks is on the rise in various countries. Jute pulp has also got the potential to make paper. The technological advancement and know-how required to do so must be provided by the government to the mills. There is the potential for use of jute fibre in the replacement of glass/synthetic fibre for plastic reinforcement. Bangladesh also has the potential to become the main supplier of jute to the global automobile industry, which is now using natural fibre to manufacture automobile interiors. There is no alternative to ensuring a fair price of jute for the benefit of the growers.

Government support for the production and procurement of jute should help jute farmers to benefit from the growing demand for the fibre and is a welcome boost for the industry.

The RMG sector has contributed to the growth of the national economy considerably. The jute sector can also play a vital role in the development process. The Agriculture Ministry and the Department of Agriculture Extension and BJMC can play vital roles in this regard. Mere rhetoric will not be of much help; what is needed is concrete action. Building up public awareness for increasing the use of jute bags and other jute products can help achieve the desired goal.