Unimpeded raw jute export to add impetus to economy

Globally, jute is the second most important fibre after cotton. It is used mainly to make cloth for wrapping bales of raw cotton and sacks and coarse cloth. The fibre is also woven into curtains, chair coverings, carpets, rugs, hessian cloth, and backing for linoleum.

Bangladesh, however, has failed to properly use this eco-friendly and biodegradable product, despite being the second biggest producer of raw jute after India. As a result, low-cost plastic products have grabbed the local market.

A recent report published in the Business Post reveals that the government has completely opened the export of raw jute, removing it from the list of export products subject to conditions. The decision comes following increasing demand from exporters for raw jute. Bangladesh Bank on Wednesday informed all banks about the change and instructed them to take necessary steps in this regard.

Earlier, the commerce ministry confirmed the removal of raw jute from the list of export goods subject to conditions in the Export Policy 2021-24 in a circular published on November 21. So, we hope the removal of the conditions will increase the export of raw jute.

According to Export Promotion Bureau (EPB) data, Bangladesh exported raw jute worth nearly $14 crore in the fiscal year 2020-21 (FY21), which increased to $21.61 crore in FY22 after the government gave the nod to export under conditions. The commerce ministry has set a target to export raw jute worth $24 crore in the ongoing FY23.

Meanwhile, EPB data reveals that jute and jute goods export stood at $116 crore in FY21. India is the largest importer of Bangladesh’s raw jute. In addition, the product is also exported to Nepal, Pakistan, China, and Brazil.

The country has 291 jute mills, and 54 of them are currently closed. These active mills produce around 78 lakh bales of jute annually. Bangladesh has domestic demand of about 65 lakh bales of jute, while 14 lakh bales are exported.

Among these mills, 94 are under the Bangladesh Jute Spinners Association, and 12 are closed. The Bangladesh Jute Mills Association (BJMA) has 165 mills, and 42 of them are closed. Besides, the Bangladesh Jute Mills Corporation (BJMC) has 32 such mills and all of them are currently shut. These jute mills employ around 2 lakh people.

According to Bangladesh Jute Spinners Association, 75 to 80 lakh bales of raw jute are produced in the country annually. Of this, 60 lakh bales are required for jute production, and 10 to 12 lakh bales are exported. Jute has been an integral part of Bengali culture for centuries, primarily in southwest Bangladesh and parts of West Bengal. Bangladeshi farmers take pride in producing jute, which they call ‘Sonali Ansh’ (Golden Fiber). Bangladesh actually produces the finest-quality natural jute fiber.

It is a traditional crop in Bangladesh with many environmental benefits. Apart from being a biodegradable material, Jute cultivation cleanses the air, requires less fertilizer than other crops, and improves soil texture. It also plays a vital role in the rural economy of Bangladesh. Higher demand for Jute creates more employment and development in rural areas of the country. Investment in research and development is a must to expand the local market for jute goods.

The government claims they are using jute bags to carry 19 products. But why could not they make it mandatory at the government offices to use jute bags?

Commercial production of ‘golden bags,’ which is eco-friendly, should be increased, and their use should be ensured everywhere. Besides, if high-yielding jute varieties can be grown, the farmers will have to spend less while growing jute.

It is lamentable that everything in the jute sector is apparently being done on ad-hoc basis. The loss the government is incurring at the jute mills needs to be brought down by ushering in reforms in this sector.