Exports of jute and jute goods have shown a sharp rise during the July–August period of FY 2019–20 compared to the same period during the last fiscal year thanks to jute goods diversification, government policy framework, availability of quality raw materials, and better crop management, according to industry insiders. A growing worldwide concern about climate change has helped to open up new opportunities for Bangladesh, they say. According to the Export Promotion Bureau (EPB), the export of jute sacks and bags fetched USD 15.49 million in FY2019–20 as against USD 13.82 million in FY2018–19. The growth is 12.08 per cent. HM Rezaul Karim, vice-president of the Bangladesh Jute Goods Exporters’ Association, told The Independent that the global demand for jute products was rising. Jute and jute goods is the third sector to cross the USD 1 billion-mark in export earnings after the readymade garments (RMG) and leather and leather products sectors. This trend also shows a reduction in the dependency on the apparel sector, said he. Rezaul Karim, who is also the owner of BICO Jute Fibres, said the demand for jute sacks was increasing in African countries such as Cameroon, Tanzania, Uganda, Ivory Coast, Kenya, Nigeria, Egypt, and Sudan. They use sacks for food grain packaging, he added. Besides, countries like Japan and South Korea use jute in car interiors, electronic casings and other surfaces because jute fibre is 100 per cent environment-friendly. It is bio-degradable and recyclable. When asked about the export amount, Rezaul Karim said that Bico Jute Fibres exported jute bags worth USD 20 million last year. “Last year, we exported 80 containers of jute products. Each container holds 16,000 jute sacks. So, 12,80,000 jute sacks were exported last year,” he explained. According to the BJMC, Bangladesh produced 9.2 million bales of jute in 2017, while it was 5 million bales in 2016. Around 240 types of products are being produced by the jute sector in Bangladesh. The average production of jute goods is 663,000 units per year. More than 40 million people are directly and indirectly involved in this sector. Talking of the challenges, Rezaul Karim said the BJMC fixed the export price of jute products, but private mills did not follow the rule and sold their products at a lower price. Twenty-two government jute mills are running at present. Though exporters do not get any government incentive, local manufacturers get 7.5 per cent cash incentive from the government. Rezaul Karim said the government implemented the ‘Mandatory Jute Packaging Act 2010’, which came to be enforced in 2014, in order to promote the country’s jute sector. As per the law, 17 agricultural commodities such as sugar, rice, maze, wheat, paddy and fertilisers must have jute packaging, but only rice is being delivered in jute bags, he added. Explaining the reasons behind the growth, Sajjad Hussain Sohel, managing director of Erans Trade International Ltd, told The Independent that Sudan and Turkey had produced bumper crops this year. So, these two countries, along with other African countries, were importing jute and jute goods from Bangladesh. Bangladesh has been producing quality jute yarn, leading to an increase in demand. The price, too, has increased from about USD 500 to USD 600 per tonne of yarn, he said. Jute yarn and twine fetched USD 84.81 million and recorded a growth of 1.68 per cent over FY2018–19, which was YSD 83.41 million, he added. Describing the advantages of jute bags, Sohel said that jute bags protected grains from insects and could be stored efficiently.
