SHANTO-MARIAM UNIVERSITY OF

CREATIVE TECHNOLOGY
Faculty of Design & Technology

Module Title:

Assignment Topic:- Jute: The Golden Fiber of Bangladesh

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Date Of Submission: 23rd October 2020

 Jute: The Golden Fiber of Bangladesh

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. Agriculture is the single most important sector of
Bangladesh’s economy.
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.

Importance of Jute 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 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 2nd largest industrial employer in
the country and about 10% of the total labor force is engaged in jute sector.

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. 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. 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, China’s 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.
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,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.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 geo-textiles, 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:- 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. 

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 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:-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.

Jute Products Instead of Plastic in Bangladesh:-It is really very true that jute is the
most environments - friendly natural fiber because of its inherent unique properties has counts of
advantages over other man-made artificial polymer fiber products or plastic products. Such as-

- Jute has no adverse effect on human body and the Mother Nature as a hole.

- Jute being natural is biodegradable .It does not plug the natural pore of the earth solid and
surface whereas plastic products are not environ -friendly

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

o Jute bags are ecological

o Jute bags are durable
o Jute has a low ecologic footprint
o jute has a low water footprint
o Jute is Cradle to Cradle
o Jute bags degrade biologically in 1-2 years
 o 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.
o Under stress jute extends only 0.5% to its stable form and so gives wonderful
dimensional stability.
o 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.
o The ignition temperature of jute is 193˚c. It thus remains very stable up to near ignition
point. Even at boiling temperature, its intact physical properties guard it from undergoing
possible distortion.
o Jute being hygroscopic and auriferous permits normal breathing and humidity to the
contents and so ensures their storage without deterioration.
o 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
o Jute being natural is biodegradable. It does not plug the natural pore of the earth soil and
surface.
o 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

a. Unavailability of high yielding varieties of jute seed leads farmers to use poor quality
seed resulting in lower productivity.
b. Low price of raw jute for which the farmers are losing interest to continue production of
jute.
c. Higher production cost compared to competing countries.
d. Absence of cost effective modern jute cultivation systems motivates farmers to take up
other agricultural activities resulting in decreased jute production.
e. Lack of practical experience for jute retting in modern system.
f. 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.
g. Old machineries, low productivity, irregular power supply, labour unrest and political
unrest in the manufacturing sector.
h. Continued financial crisis in the public sector jute mills.
i. Competition of substitute synthetic products in international market as well as in the
domestic market.
 j. Low export price of jute goods in the overseas market.
k. 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.
l. 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.
m. Inadequate backward linkages in the Jute sector leads to import of accessories by local
producers resulting in higher cost of production.
n. Lack of awareness of Jute diversified products in the domestic market.
o. 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.

How to overcome the problems of Jute sector:-

a) There has been a demand from the industry circle to allow them to procure independent
electric generators for industry’s use under a special ‘long term soft loan’ arrangement. This
issue needs serious consideration of the government.
b) 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.
c) 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.
d) High yielding variety (HYV) of Jute seeds should be available at farmer’s level.
e) The remunerative price of Jute fiber should be ensured at grower’s level.
f) 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.
g) The government may consider creating a technology up-gradation fund for the jute
sector.
h) The Government should give mandatory order to use Jute bags as packaging materials for
specific sector like food grain, cement, sugar, fertilizer etc.
i) The Jute industries in Bangladesh need immediate Balancing, Modernization and
Rehabilitation (BMR) Program to increase the productivity and lowering down the production
cost.
j) 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 and organise Buyers-Sellers Meet (BSM), participation at the International
Fairs, etc., in association with the Industry.
k) 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.
l) The Jute Sector Restructuring program (JSRP) should be reintroduced with the help of
donor agency/other sources.
m) 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.
n) 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.
o) 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
department.

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.