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Problems and Prospects of the Jute

Products in Bangladesh

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Table of Content
Topics

Pages

1. Introduction

2. Objective of Study

3. Methodology

4. Importance of Jute Sector to

the Economy in Bangladesh

I.

Export Performance

II.

Performance of Raw Jute & Jute Goods

III.

Sources & Destination of Raw Jute & Jute Goods

IV.

Exhibition Program of Jute Products in Bangladesh

V.
VI.
VII.
VIII.
IX.

5. Main Contain

5-13

Benefits of the Exhibition

Prospects of Jute & Jute Products in Bangladesh
Possible Challenges For Bangladesh
Opportunities for Jute Related Product Market
Challenges

I.

Jute Bags or Plastic Bags

II.

Advantages of Jute Bags

III.

The Problems & Issues in Jute Sector in Bangladesh

IV.

How to overcome the Problems of Jute Sector

14-17

6. Conclusion

18

7. Recommendation

18

8. References

18

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Introduction
Jute or Golden Fiber is a valuable asset for Bangladesh with glorious past and has come back
again with an offer of prosperous future for the country. Up to the 1960s, Bangladesh used to
produce nearly 80% of the world's jute. Jute export was the largest contributor to the foreign
exchange earnings. Though gradually the prosperous days of the golden fiber faded significantly;
still it has dynamic potential to present a future for positive economic growth.
As is known, jute was the single most important export item of Bangladesh till the end of the
1980s with the ascendancy of export-oriented readymade garments (RMG), and later on of
shrimp, jute lost its pre-eminent position. It presently occupies the third position in the export
basket of Bangladesh. Bangladesh is the leading exporter of raw jute globally, whilst India is the
largest producer as well as consumer of jute products in the world.
Jute manufacturing industry is one of the oldest manufacturing sectors of Bangladesh. The
country is one of a very few countries that produce and export high quality jute and jute
products. Favorable climate, ideal land type, low cost manpower and domestic and foreign
demand for Jute and Jute products made Bangladesh once a paradise of jute industry.
Jute manufacturing sector has emerged in East Pakistan (current Bangladesh) in the early 1950s.
In 1960s and 1970s, major share of national income and manufacturing employment was largely
contributed by Jute sector.
Export of jute and jute products was the most important sources of foreign exchange of Pakistan
during the 1960s. However, both share and importance of jute and jute goods in manufacturing,
export and overall foreign exchange earnings, and the Gross Domestic Product (GDP) have
gradually declined over time. In the year 2009, this sector accounted for a more 3.9 per cent of
the country's total export, which is of extremely low compared to its contribution in the overall
export observed during the1970s (89.9 per cent in 1973). This is the result of many national and
international reasons including liberation war, political turmoil, change of policies regarding jute
and jute products, emergence and global preference of synthetic fibers etc.

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Objective of Study
a) To understand the changes in structure and composition of jute manufacturing sector of
Bangladesh and analyze economic, technological, managerial and labor related issues of the jute
manufacturing sector under different regimes.
b) To study economic, technological and worker related issues of jute mills currently in
operation, under the public and private sectors, in order to identify major factors responsible for
their efficiencies/ inefficiencies.
c) To identify opportunities and challenges that needs to be confronted by the jute manufacturing
sector in the near future.
d) To extract appropriate policy suggestions with a view to develop a viable and efficient jute
manufacturing sector.

Methodology
The CPD conducted a primary survey of 45 jute mills in 2007these accounted for about 35 per
cent of the total number of jute mills currently in operation in Bangladesh. Of the 45 jute mills,
14 jute mills were owned by the BJMC, 17 by the Bangladesh Jute Mills Association (BJMA)
members and 14 by the Bangladesh Jute Spinners Association (BJSA) members. A total of 85
workers working in different jute mills were also interviewed. A structured questionnaire was
prepared to conduct the survey, which was discussed with all major stakeholders and pre-tested
in two jute mills before finalization. Major issues highlighted in the questionnaire were
production and export, availability of technologies, workers, management, productivity and
efficiency of machineries and workers efficiency of management, procurement of raw jute,
access to finance, cost and income, export market, major challenges, etc. In order to understand
the trend in jute production, employment, capacity utilization, cost and profit, most of the
questions were directed towards two specific time periods: 2002 and 2007. The survey was
conducted for three continuous months from November 2007 to January 2008.

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Importance of Jute Sector to the Economy in

Bangladesh
Bangladesh once enjoyed the monopoly in production and marketing of jute & jute goods in the world
market. At present Bangladesh is the second largest producer of jute, India being the largest one. But
Bangladesh produces the finest quality of jute due to favorable climate and soil condition. About 12 lac
(1.2 million) acres of land is in use for jute cultivation per year in the country. Bangladesh on an average
produces 50-55 lac (5.0-5.5 million) bales of raw jute which is 30% of world production per year. Out of
these 20-25 lac(2.0-2.5 million) bales are exported and 30 lac (3.0 million) bales are consumed by the jute
mills, leaving the rest for domestic consumption and carryover. About 5.5-6.0 lac MT jute goods are
produced in the country annually out of which 70-75% is exported. Bangladesh meets nearly 95% of
world raw jute demand and about 60% of jute goods demand. Bangladesh approximately earns foreign
currency worth about 2000 crore taka from exporting raw jute and jute goods on an average per year. Still
today Bangladesh is the largest supplier of jute and jute goods in the international markets. At present
there are more than 150 composite & twine Jute Mills in Bangladesh in public & private sector. They are
producing traditional products along with various types of twine & diversified jute products. About 35
million people (25% of the total population) of Bangladesh is directly or indirectly dependent on Jute
cultivation and manufacturing, trading of Jute & Jute goods. Jute industry is the 2 nd largest industrial
employer in the country and about 10% of the total labor force is engaged in jute sector.

Export Performance
This section will examine the export performance trends of raw jute and jute goods with a view to
understanding global market behavior both at aggregate and disaggregate levels. As the data indicate,
export-oriented jute sector of Bangladesh used to contribute USD 313.1 million of export revenue in
FY1972-73, which was about 90 per cent of the total export from Bangladesh at that time. This had come
down to 23 per cent by FY1990-91, whilst in FY2000-01 the share came down to 4.6 per cent, which
declined further to 2.7 per cent in FY2008-09 (Table 1). It is notable; however, that share began to rise
over the next year to reach 4.5 per cent in FY2009-10. Phenomenal growth of Bangladeshs export
oriented garments sector in the 1990s was the major reason for the decline in the share of jute; however,
fact remains that the picture also did not improve much in terms of absolute value. It is interesting to note
that, in FY2009-10 total export of Bangladesh was USD 16.2 billion, which was higher than the total
amount (USD 15.3 billion) earned from raw jute and jute goods export between FY1972-73 to FY200910. Total export of raw jute and jute goods did not increase significantly; it rose from USD 313.1 million
in FY1972-73 to USD 736.4 million in FY2009-10 (Table 1), whilst total export of Bangladesh rose from
USD 348.4 million to USD 16.2 billion in FY2009-10. However, Bangladesh continued to remain the

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leading exporter globally with the country accounting for over 90 per cent of the worlds raw jute and
allied fibre export. It is important to mention here that, raw jute and jute goods export increased
significantly and almost doubled in FY2009-10 compared to FY2008-09 (by about 98.5 per cent), to
reach USD 736.4 million. In FY2009-10, Bangladesh exported 4,471 thousand bells of raw jute and 906
thousand tons of jute goods. Major jute items that were exported included raw jute, jute yarn and twine
jute carpet, jute ropes, and other jute items.

Table: Share of Jute Export

Year

Value (Million USD)

Share (%)

FY1972-73

313.1

89.9

FY1980-81

487.3

68.6

FY1990-91

394.6

23.0

FY2000-01

297.5

4.6

FY2004-05

334.9

4.0

FY2007-08

483.4

3.4

FY2008-09

417.0

2.7

FY2009-10

736.4

4.5

Source: Export Promotion Bureau (EPB) Year Book, various years.

Performance of Raw Jute and Jute Goods

Global jute production was estimated to be at approximately 2.67 million tonnes in FY2007-08,
marginally lower by 38,500 tonnes when compared to the production in FY2006-07. India topped the list
of major producers, accounting for an impressive 61.6 per Cent of the world production in FY2007-08.
Her production was 1.64 million tonnes in that year. India was followed by Bangladesh with a share of
nearly 37.1 per cent; Myanmar was a distant third with 0.7 per cent of the global jute fibre production. In
FY2008-09, Bangladesh Produced 0.8 million metric tonnes (MT) of jute compared to 1.4 million MT in
India (FAO 2009). Thailand, Nepal and Brazil also grow and produce jute and/or jute goods, along with
Vietnam, Indonesia and Cambodia, while Thailand and Myanmar are among the jute fibre exporting
countries. Other producers consume most of their grown jute. Some countries (e.g. Ivory Coast, Brazil,
Egypt and Cuba) have developed traditional jute goods manufacturing industry at small-scale capacity,
based entirely or partially on imported raw fibre. The end products are sacks and bags produced mainly
for their domestic use. The jute sector of Bangladesh has experienced important changes since the 1990s.

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Export volume of raw jute was below 0.3 million tonnes during late 1980s and continued to fall till 1994.
Export trend saw some turnaround since then, but again experienced a trough during 2001 (severe than
the previous deep of 1994). 2004 onwards export of raw jute and jute goods have continued to post an
increasing trend. It is important to note here that export volume of jute goods was significantly higher
than raw jute throughout any time period.

Sources and Destination of Raw Jute and Jute Goods

Interest in jute fiber, as was noted above, has resurrected recently in view of environmental friendliness of
the product. It is now reckoned to be a good alternative to the use of synthetic fibres such as carbon or
ceramic fibers which are subject to environmental concerns. Jute is an environment-friendly product since
the fossil fuel content is lower compared to other fibres; jute is also an economically profitable crop as it
uses 10 per cent less energy. At the same time jute absorbs a large amount of carbon dioxide from the
atmosphere. Reduction of world demand for jute since 1980s was one of the primary reasons for the
gradual decline that the jute sector of Bangladesh has experienced over the past years. The increasing
global awareness about the advantage of using natural fibres has now resulted in a rise in global demand
for jute goods. Globally, demand for diversified jute products has been growing particularly in developed
country markets such as USA, Canada, Australia and Japan, where consumer groups are becoming
increasingly conscious about carbon footprint of consumer goods. Bangladesh is in a unique situation to
take advantage of this growing consumer concern and the resultant interest. For the last five years (from
2005 to 2009), export of raw jute in the world market has increased by 39.5 per cent, and export of jute
products has increased by 57.6 per cent. In 2009, Bangladesh was the largest raw jute exporter with a
share of about 85.7 per cent of the total global export. On the other hand, China occupied the topmost
position among the exporters of jute goods accounting for 58.1 per cent of the total global export. India
accounted for 8.5 per cent and Bangladesh for 6 per cent of export of jute products in the world market.
Between 2005 and 2009, Chinas export of jute goods increased by 181.1 percent, whilst that of
Bangladesh declined by 11.1 per cent, although the benchmark figures for the two countries were
significantly different.

2005

2009

Exporter
Value

Share of

Share

World

ofWorld

Export (%)

Value

Export (%)

194.5

Change in2009
over 2005(%)

Raw Jute
World 139.5

139.5

39.5

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Bangladesh

121.9

87.4

166.7

85.7

36.7

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Exhibition program of Jute products in Bangladesh

Recently a jute fair held in Dhaka on January 27 to January 29, 2014 at Bangabandhu
International Conference Centre (BICC). The fair was organized with a view to promoting
diversified jute products made by Bangladesh and India. International Jute Study Group (IJSG)
has organized the first-ever such fair in association with National Jute Board (NJB), India & Jute
Diversification and Promotion Centre (JDPC), Bangladesh to promote jute products

Benefits from the exhibitions

The idea of using jute products are a preferred choice of global consumers due to its
environment-friendly nature.
Consumers get the awareness that world's major two jute-producing countries, India and
Bangladesh, should work together to change the people's perception about the products
made up of natural fiber.
We have to re-brand the jute related product for our foreign target customers to get the
proper revenue generation.

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Prospect of Jute and Jute products in Bangladesh

Bangladesh and international market for jute and jute products has seen some downward trends
in the past but lately market for jute and jute products is experiencing an upward trend. This
trend if utilized properly will provide Bangladesh with better opportunity in export in coming
years. Some of the factors contributing to the prospect of jute and jute products of Bangladesh
are as follows:
Climate and Environmental Issues:
Environmental sustainability and climate change is a big issue in today's world. Previously
numerous human activities towards profit making and industrialization has created both health
and environmental hazard such as deadly diseases, global warming, climate change and many
frequently occurring natural disasters. Now people all around the world are looking for
environment friendly ways of doing business.
The need for eco-friendly, bio degradable packaging material is rejuvenating. Now the whole
world is looking into natural fibres for everyday use. The United Nations declared 2009 as the
'Year of Natural fibre' in order to popularize the use of natural fibres in manufacturing goods.
Consumers are now more interested to go for eco-friendly natural goods rather than synthetic
materials which is now creating a positive trend for jute and jute products. UN sponsored
International Jute Study Group (IJSG) and the organization said jute-made shopping and food
grade bags, composite, geo-textiles, pulp and paper have a huge market potential in the face of
rising environmental consciousness and demand for green products.
Possibility of western countries to ban polythene
Due to rising environmental concerns, renewed interest is been shown by European Union and South and
North American countries on jute and jute products. There is a very good possibility for European Union
and South and North American States to ban plastic bags and accept jute as a substitute for polythene in
essential packaging and shopping bags. This will boost the current demand for jute and jute products and
Bangladesh can easily be a beneficiary of this positive trend. According to IJSG the future demand of jute
bags is likely to be 32 million bags a year, while the present supply is only 12 million bags. Large
industry leader shopping marts like Wal-Mart and Tesco are switching to jute bags as well.
Discovering diverse usage of jute products worldwide
The global market for jute has moved beyond simple packaging materials. The range of products includes
shopping bags, rugs, wall coverings, apparels, etc. With the right touch of colors combined with the
artisan's skills, jute fabric could be transformed into almost elegant but ecofriendly product. A number of
industries ranging from fashion to automobile have started to see new possibilities in jute. Another
interesting development has been in the field of jute apparels is, Indian fashion designers have led the
way in experimenting with a wide variety of clothing ranging from sarees to suits made of jute. The
blending of jute with cotton produces a material called Juco can be used to make clothing, accessories and
home furnishing items.

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The third major application for jute is geo-textiles. These are

permeable mesh-like fabrics that generally find uses in civil
and coastal engineering applications due to their ability to
separate, filter, reinforce, protect, or drain efficiently. Jute as a
geo-textile (JGT) is being used for soil erosion control,
vegetation consolidation, agro-mulching, reinforcement,
protection of riverbanks and embankments, and in road
pavement construction. According to recent studies, JGT
enables a cost reduction of almost 30-40% when used for
reinforcing road construction due to its higher moisture
retention capacity, ease of installation, and superior flexibility.
Our existing jute mills can be diversified to produce geotextiles, the demand for which is bound to grow in future.
Emergence of new markets
Apart from growing demand in western countries, the demand for jute is consistently increasing in many
Asian countries like Thailand, Japan, and Vietnam etc. According to Md. Shamsul Haque, director
(marketing) of state-owned Bangladesh Jute Mills Corporation, Thailand has emerged as a new market
for our jute sacks along with Vietnam.
Thai government has started buying a huge quantity of rice in jute bags to fulfill the pledge of providing a
guaranteed price to farmers. Mr. Haque said, We have received orders for supplying two crore (20
million) pieces of jute sacks from millers in Thailand,
The gain of Indian Rupee against our currency in recent months made the Indian importers to buy more
jute and jute goods. The demand and the price of jute and jute products in Bangladesh has been increasing
and there by increasing the prospect of Bangladeshi jute import.
Price competitiveness
Bangladesh is one of the few countries that grows and produces jute and jute products. Bangladesh
became second largest producer of jute after India, and one of the top supplier of the bio-degradable
natural fibre. Thus, Bangladesh's entrance into diversified foreign markets will not be a great challenge.
Labor costs in Bangladesh is very cheap compare to other countries one of the most competitive in the
world and the economies of scale play a pivotal role in keeping cost of Jute diversified products at a
minimum.
The discovery of genome sequencing of jute
Recently new genome sequence of jute was discovered by Bangladesh. This will hopefully play role in
producing bulk amount of quality jute in lower cost.
All these factors play significant role in opening up greater opportunity for jute and jute products of
Bangladesh in global market.

Possible Challenges for Bangladesh

Along with the rising opportunities Bangladesh faces certain barriers in jute export. Some of the main
barriers could be:
Tariff Barriers

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while Kenya and Iran impose the very high tariffs of 73.4 per cent and 50 per cent respectively. For raw
jute Bangladesh faces highest tariff rate in Singapore, Colombia and Vietnam with 10 per cent, and Brazil
with 8 per cent. Twine and ropes have highest duty in the range of 15 per cent in Venezuela, 10 per cent in
Philippines and Barbados. For fabric, highest duties are levied by Algeria (30 per cent), Tanzania and
Kenya (25 per cent), Brazil and Iran (20 per cent). Bangladesh has to face high tariff for exporting sacks
and bags of jute in Iran (65 per cent), Kenya (59 per cent) and Vietnam (40 per cent). Brazil imposed very
high anti-dumping duty (ADD) on sacks and bags of jute. These have limited Bangladesh's export
opportunities in those countries.
Non-tariff Barriers
According to a CPD (Centre for Policy Dialogue) report published in 2011 called Global Market
Opportunity in Export of Jute; Bangladesh faces a number of Non-Tariff Barriers (NTB) hampering its
export. Some of them are:
a. NTBs similar to sanitary and phytosanitary (SPS) measures
b. NTBs related to consular information
c. NTBs related to technical barriers to trade (TBT) measures
d. Quantitative restrictions including ban
e. Labeling requirement
f. Rules of Origin g. Visa requirement
Also there are obligatory compliance requirements like health, safety, working hours, working condition,
safety, child labor, wages and benefits, safety, environmental factor etc.
Substitute of jute products
Even though there is an increased demand for jute and jute products, still there are substitutes for jute
products such as natural fibres from kenaf, hemp, sida and sunhemp, coir and abaca etc.
These natural fibres as well as some synthetic fibres may emerge as new substitute for jute products in
near future hampering its growth.
Lack of proper attention by the government
After 1980s this sector has seen much decline and some of the government policies also added to negative
growth of the industry. If government fails to provide necessary attention to this industry the growth and
development of the industry may face serious challenges in near future.
Lack of proper support from the countrymen
Lack of proper support from the countrymen for jute product will hamper the domestic growth of the of
jute related products which will ultimately have an adverse effect on overall jute industry.
Lack of proper knowledge
One of the main problems for Jute Diversified Product manufacturer in Bangladesh is lack of proper
knowledge, experience, and exposure to standard of international markets which is hindering many small
and medium enterprises to enter into the international market and hampering overall export.
Lack of financial resources

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Lack of financial resources of small and medium
enterprises is resulting in imitation rather than
innovation of different types of products which is also
hampering automation and productivity and hindering
the proper growth.
Ways to overcome the barriers
Some measures could be taken to overcome the
current barriers faced by the industry. Some of the
possible measures are as follows:
Removing trade barriers
Both tariff and non-tariff barriers hamper export for this sector. These barriers should be removed through
negotiation and policy formation. Attempts should be taken to resolve dispute with the trading countries
to facilitate export of jute and jute products.
Proper branding of jute products
Proper branding and marketing should be done to promote Bangladeshi jute and jute products in both
domestic and international markets to enhance the growth of jute industry. Awareness campaigns should
be done to attract more domestic consumers. Extensive marketing campaign to promote the quality of our
jute and jute products should be done for both national and international markets.

Opportunities for Jute Related product Market

Strategy formulation to capture new markets
Both long term and short term strategies should be formulated by government and private sector as a team
to capture and sustain in domestic and international market.
Facilitating research and development in this sector
In this era of technology and development, it is essential to focus on research and development to survive
in the dynamic market. Investment needs to be made in R&D to create new and diversified applications of
jute fibres. Jute research organization should come forward with better variety of seeds, new technology
to enhance production of better quality of high yielding jute. Otherwise Bangladesh will soon lose its
competitiveness in the market as competitor countries are focusing on R&D to increase their jute quality
and yield.
Introducing new technologies in this sector
Introducing new technology in jute sector has become a necessity to survive in the competitive market.
Bangladesh jute industry is lagging behind because of obsolete old technology used in manufacturing
products in this sector. To meet the future demand and hold on to its competitive position, introduction to
new technology is very essential.

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Encouraging innovation and diversification of the products
Bangladesh is still lagging behind in producing diversified jute products. The industry is still focusing on
traditional jute products. But the international market demand has become more dynamic. Demand of
diversified and innovative products like paper from jute or soil erosion control product made out of jute
etc. are increasing. Bangladesh should also focus on innovating variety of jute product. Thus
encouragement and help for both government and private sector is needed.
Supporting small and medium enterprises in this sector
Small and medium enterprises in this industry are suffering from lack of capital, financing, and
automation, proper market information which is affecting the whole industry. These SMEs need proper
attention and help from government to recover from current situation.
There are both opportunities and barriers in the development of current jute industry of Bangladesh. Even
with all the barriers present, the industry has started to experience positive growth in recent years.
Bangladesh earned $736.44 million in 2009-2010 fiscal by exporting jute and jute products, which is
76.43 percent more than that in fiscal 2008-09, as per the Export Promotion Bureau report. If we can take
the necessary steps to remove or mitigate the barriers we can expect for a golden future for jute and jute
products of Bangladesh in coming years.

Challenges

The cultivable land is decreasing due to increase of population day by day.

To meet the demand farmers motivate to take up high earning agricultural activities resulting in

decreased Jute production.

Water is necessary for Jute retting. Scarcity of water will threat jute retting in future resulting

motivate farmers to take up other agricultural activities.

Other countries have successfully established a favorable image of their jute diversified products

in the international market.

Indian, Chinese and Vietnamese jute diversified goods are more popular because of their product

range and depth, colors, designs and quality.

Extensive governmental support in the jute sector by neighboring countries made their Jute products more
competitive in international markets

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Main Contain
Jute bags or plastic bags?

In the time you need to read this, millions of plastic bags will be produced. And we havent even
mentioned the amount of oil needed to do this. A study by the EPA (Environmental Protection
Agency) in 2008 showed that only 6.8% of all plastic waste is recycled. But what happens to the
other 93.2%?
Eighty per cent of floating waste in oceans and lakes is comprised of plastic, and this forms a
major threat to aquatic wildlife. Many turtles mistake plastic bags for jellyfish and eat them.
Birds and fish too ingest plastic particles or become (fatally) entangled in plastic bags. The waste
doesnt clear itself up: it takes around 1,000 years for polythene (plastic) to become fully
biologically degraded. Various bodies have already stated that thin plastic bags should be banned
immediately. Luckily, some governments now also recognize the seriousness of this problem.
In China some 3 billion plastic bags were used every day, and the waste belts in China were
beginning to look like White Mountains due to all the discarded plastic. In response to this, the
Chinese government took measures to prevent the use of plastic bags. Besides China, the
governments of Australia, Bangladesh, Ireland, Kenya, Rwanda, South Africa, Taiwan, Uganda
and several cities in the United States (including San Francisco) have also taken successful
measures for reducing the use of plastic bags.

Advantages of jute bags

The use of jute bags instead of plastic bags offers many advantages, including the following:

Jute bags are ecological

Jute bags are durable
Jute has a low ecologic footprint
jute has a low water footprint
Jute is Cradle to Cradle
Jute bags degrade biologically in 1-2 years

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Jute bags are extremely strong Jute, having been the most environment-friendly
natural fiber because of its inherent unique properties has counts of
advantages over other man-made artificial polymer fiber products.
Under stress jute extends only 0.5% to its stable form and so gives wonderful
dimensional stability.
The hairy surface of jute fabric gives it a capacity to grip any surface it comes
in contact with. They can, for this reason, be stacked high and wide without
any risk of slippage.
The ignition temperature of jute is 193c. It thus remains very stable up to
near ignition point. Even at boiling temperature, its intact physical properties
guard it from undergoing possible distortion.
Jute being hygroscopic and auriferous permits normal breathing and humidity
to the contents and so ensures their storage without deterioration.
Hooks may be used freely and easily on jute products during handling as its
innate properties cover up the pierced holes immediately after. It thus
prevents seepage loss of contents during transportation and allows itself to
be re-used over and again
Jute being natural is biodegradable. It does not plug the natural pore of the
earth soil and surface.
When burned, it emits the same fume as a burning wood as we know, is
nothing dangerous.

The Problems and Issues in Jute sector in Bangladesh

1.
2.
3.
4.
5.
6.
7.
8.
9.

Unavailability of high yielding varieties of jute seed leads farmers to use poor quality seed
resulting in lower productivity.
Low price of raw jute for which the farmers are losing interest to continue production of jute.
Higher production cost compared to competing countries.
Absence of cost effective modern jute cultivation systems motivates farmers to take up other
agricultural activities resulting in decreased jute production.
Lack of practical experience for jute retting in modern system.
Lack of advanced technology/machines and unavailability of spare parts in some jute mills lead
to use of obsolete machines resulting in reduced production efficiency.
Old machineries, low productivity, irregular power supply, labour unrest and political unrest in
the manufacturing sector.
Continued financial crisis in the public sector jute mills.
Competition of substitute synthetic products in international market as well as in the domestic
market.

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10.
11.
12.
13.
14.
15.
16.

Low export price of jute goods in the overseas market.

Lack of skilled labor and skilled designers in the jute sector leads to production of inferior quality
products resulting in loss of competitiveness in the export market.
Inadequate R & D facilities at both public and private levels in the Jute sector leads to absence of
continuous product innovation resulting in loss of growth opportunities.
Inadequate backward linkages in the Jute sector leads to import of accessories by local producers
resulting in higher cost of production.
Lack of market development knowledge by the exporters lead to ineffective promotion of
products in both international and domestic markets resulting in loss of potential market opportunities.
Lack of awareness of Jute diversified products in the domestic market.
Bangladesh Jute Research Institute (BJRI) lacks close coordination with the Ministry of Textiles
& Jute as well as Jute Industries as it is under the Ministry of Agriculture. This lack of coordination
creates a problem in maintaining the supply chain of certified jute seeds on which the quality of Jute
fibre vis-a-vis the production of quality Jute goods depends.

Solution/How to overcome the problems of jute sector

1.

2.
3.

4.
5.
6.

7.
8.
9.
10.

There has been a demand from the industry circle to allow them to procure independent electric
generators for industrys use under a special long term soft loan arrangement. This issue needs
serious consideration of the government.
The Jute Sector should be considered a Thrust Sector. The Government should take strategic
policy measures for the promotion of jute sector in short, medium and long terms.
The management situation of the Jute sector should be improved bringing all Jute related
activities including Bangladesh Jute Research Institute (BJRI) under a single umbrella of the Ministry
of Textiles & Jute.
High yielding variety (HYV) of Jute seeds should be available at farmers level.
The remunerative price of Jute fiber should be ensured at growers level.
The research and development activities should be continued and strengthened for production and
processing of raw Jute to increase yield and reduce production cost by interacting with International
promotional bodies.
The government may consider creating a technology up-gradation fund for the jute sector.
The Government should give mandatory order to use Jute bags as packaging materials for
specific sector like food grain, cement, sugar, fertilizer etc.
The Jute industries in Bangladesh need immediate Balancing, Modernization and Rehabilitation
(BMR) Program to increase the productivity and lowering down the production cost.
Strong and committed endeavors are essential for market survey and market promotion for
increasing the volume of export of both raw jute and jute products. For this it is necessary for the
Government to come forward and organize international market promotion facilities on a regular basis

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11.

12.
13.

14.

15.

and organise Buyers-Sellers Meet (BSM), participation at the International Fairs, etc., in association
with the Industry.
The Jute industry lacks adequate trained human resources at all levels of production causing
serious handicaps in productivity of both man and machine and quality of products. A need assessment
and comprehensive Human Resource Development program should be prepared in consultation with
the Industry and implemented through the channels of exiting educational/training Institutions.
The Jute Sector Restructuring program (JSRP) should be reintroduced with the help of donor
agency/other sources.
To promote new products in the international market, it is necessary to establish acceptable
international standards. The Government should take necessary measures for promoting and adopting
standardization of all jute and jute products.
In view of the banning of polythene, there is an urgent need for development of cheaper jute bags.
For these R&D organizations both government and private should put their concerted efforts into such
development.
The Government should be approached to set up some sort of mechanism to maximize internal
usage of diversified new jute products including usage by the relevant government departments.

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Conclusion
Bangladesh can claim as a country of jute as everywhere in this country jute and allied fibers can be
grown. Bangladesh has got relative advantage on the production of best quality jute fibre. Though uses of
traditional jute products are declining jute has versatile intrinsic and extrinsic properties. So a wide range
of diversified jute products can be produced by exploring these properties. These diversified products are
biodegradable, photo biodegradable, nontoxic, non-plastic, acidic, hydrophilic, high absorption of UV
capacity & moisture, eco-friendly and easy disposability. These products not only preserve environment
but also help to protect environment from degradation. Mulitfibre-Composite Concept with vertical and
horizontal diversification application areas of jute & jute products can be explored in wide dimension. In
fact scientific and technological information of production of these diversified jute products are more or
less available. It needs concerted and international intervention to develop marketable diversified jute
products on needs basis. Huge potential markets of these products are created in the developed countries.
To convert these potential markets into real market, comprehensive market promotional activity is highly
needed. In this respect International Jute Study Group (IJSG) along with other international bodies can
play vital role with the involvement of relevant national and International organizations.

Recommendation

Domestic Market expansion program should be expanded in a larger portion.

Offering of quality Jute products by adding variation.
Proper utilization of domestic fertile resources.
Up gradation of machines that are used for production in the Jute mills.
Appropriate transport facility for remote production areas.
More research and development institutes for jute related product and
Focusing on branding the use of jute and jute related products for daily needs.

References

https://www.lap-publishing.com/catalog/details/store/pl/book/978-3-659-35479-3/problems-andprospects-of-industry-in-bangladesh:a-study-on-jute-mill

core.ac.uk/download/pdf/6469598.pdf

https://www.scribd.com/doc/207704016/Problems-Amp-Prospects-of-Jute-Industry-in-Bangladesh

www.slideshare.net/mmrpfb/bangladesh-economics