Home ›› 06 Jan 2023 ›› Opinion
Bangladesh’s economy suffered a setback due to the Covid-19 pandemic and Ukraine-Russia War battering the world for over two years. The poverty rate has been rising alarmingly while the country’s economy, trade and investment are going through very challenging times. Against this backdrop, jute can be a potential game-changer for Bangladesh’s economy.
Jute is such a product, nothing of which is wasted. So, why will it incur losses? Attention is needed to make it profitable. Many products, including Sonali Bags, are now being produced from jute which is called gold fibre. Jute is an agricultural product, and it is also an industrial product at the same time, which is an environment-friendly one. So, there’s a massive prospect for the country’s jute sector.
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 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. 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 to this end. Bangladesh Bank on Wednesday informed all banks about the change and instructed them to take necessary steps in this regard.
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 nodded to export under conditions. The commerce ministry has targeted exporting 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 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 are closed. Besides, the Bangladesh Jute Mills Corporation (BJMC) has 32 such mills, which are currently closed. 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 integral to 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 very lamentable that everything in the jute sector is being done on ad-hoc basis. The loss the government is incurring at the jute mills needs to be brought down by bringing reforms in this sector.
The sector has been revived as the use of natural fibre is on the rise worldwide for a growing shift towards an eco-friendly lifestyle. The export of jute depends on the export of raw jute and spun yarn. Jute is not only our past glory but can also become a golden future. The golden fibre can be the new growth driver of Bangladesh’s economy.
Unfortunately, the government jute mills are in very sorry states; the technology of the mills has not been upgraded, which severely hurts these mills’ productivity. These mills often struggle to reach optimum efficiency after they are reopened. Private sector mills have always been more efficient than the public sector ones, and the job of running such mills should be left to skilled private sector management.
However, the government still has a vital role to play. The government should create a fostering culture to ensure a flourishing jute sector. Instead of reopening mills, which have had a history of losses, the government should focus on establishing more research and development centres in collaboration or partnership with other stakeholders. These centres would focus on product development and provide new technology to increase efficiency and productivity. Also, the government must take steps to encourage the use and production of diversified products.
The demand for jute sacks is on the rise in African countries like Sudan, Kenya, Ivory Coast, Kenya, Nigeria, Egypt, Cameroon, Tanzania and Uganda, where they are used for food grain packaging. Jute pulp also has 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 using jute fibre to replace glass/synthetic fibre for plastic reinforcement. Bangladesh also has the potential to become the leading supplier of jute to the global automobile industry, which is now using natural fibre for manufacturing automobile interiors.
Jute can create a significant impact ensuring global sustainability. However, without the proper focus and government support, the blessing we receive from nature will diminish.
The writer is a journalist. He can be contacted at [email protected]
