Category Archives: Jute

Jute exports thrive on new markets

Jute exports thrive on new markets

Workers carry bundles of jute sacks at a factory in Bogra. Thailand and Vietnam have emerged as new markets for jute sacks. Photo: STAR

Sohel Parvez

A recently-created demand for jute sacks in Thailand has come as a boon for the jute industry in Bangladesh, raising hopes for a recovery in exports that fell 13 percent during July-February of the current fiscal year.

Also, India has recently increased import of jute and jute goods after its currency started to gain against the US dollar.

Prices have also increased.

“Exports of jute goods to our traditional middle-eastern and African markets have fallen amid political unrest in Libya, Syria, Iraq and other countries,” said Md Shamsul Haque, director (marketing) of state-owned Bangladesh Jute Mills Corporation that has 21 jute mills running.

“But our exports increased in the last three months as we got some new markets,” said Haque, “Thailand has emerged as a new market for our jute sacks along with Vietnam.”

The market in Thailand has widened after the current Thai-government started buying a huge quantity of rice in jute sacks to fulfil its pledge of providing a guaranteed price to farmers.

“We have received orders for supplying two crore (20 million) pieces of jute sacks from millers in Thailand,” he said.

“Thailand has opened up a new opportunity for us. It has come as a blessing as our stocks were piling up due to a fall in exports. Now all our mills are booked for the next four months,” said the BJMC official.

Private jute mills will also be benefited due to the decision of Thailand, which is the largest exporter of rice and forecasts to produce 30 million tonnes of rice in 2011-12.

“Demand for jute sacks is high in Thailand,” said Mahmudul Huq, deputy managing director of Janata Jute Mills Ltd, a leading jute yarn and jute goods exporter.

He said, as his mill alone could not meet the orders, he tied up with two other mills.

Janata ships 3.2 lakh pieces of jute sacks a month to Thailand, he said.

Huq said Thailand needs three million pieces of bags a month to package rice. It means around 36 million pieces of sacks will be required a year, he added.

“Because of Thailand, the demand for jute sacks will continue across the year. India is our main market, but its demand remains only for eight months,” said Huq.

Apart from Thailand, exporters faced an increased demand for raw jute and jute goods from India.

The Indian rupee has gained against the greenback in recent months, and so the Indian importers started to buy more jute and jute goods, said Haque of BJMC.

Mahfuzul Haque, chairman of Bangladesh Jute Association, a body of raw jute traders and exporters, also said the demand for jute goods has improved abroad.

“Prices have also gone up,” he said, “It’s mainly because of increased demand from India.”

Exporters said the increased demand and higher prices of jute goods will allow them to narrow down the losses in export receipts in the first half of the year.

But it may not be possible to offset the past fall and post a positive growth in exports by the end of the fiscal year on June 30, according to Janata Jute Mill official Huq.

Export receipts from the jute industry — the second biggest export earner — fell 13.66 percent to $615 million in the July-February period of the current fiscal year, from $712 million during the same period last year, according to Export Promotion Bureau.


Use of jute geo textiles going on under UN-funded project

Use of jute geo textiles going on under UN-funded project

As part of government’s plan to diversify use of jute, implementation of a project is going one to prevent riverbank erosion and mudslide from hills and renovation of rural roads with jute geo textiles.

Out of 10 field trials under the project adopted by the present government, two has already been completed while one is under implementation and sites have been selected for two more.

Project implementation agency Jute Diversification Promotion Centre (JDPC) Executive Director Khandakar Mokhlesur Rahman said this is an international project financed by UN Common Fund for Commodities.

Under the project titled ‘Development and Application of Potentially Important Jute Geo Textiles’ involves 39.62 lakh US dollars.

Under the project, the construction of a rural road in Keraniganj on both sides of the river Turag has completed successfully.

The reinforcement of 500-metre bank of the river Pathraj at Boda of Panchagar ended under the project in June last year.

Currently, the field trial is going on to prevent landslide of Chimbuk hill at Baraitala in Bandarban under the project.

Two more sites have been selected to start the field trials. The bank of Barai river in Rajbari would be repaired and a rural road in Savar would be renovated with jute geo textiles.

Khandakar Mokhlesur Rahman said more sites would be selected within the current year to complete all of the 10 field trials by 2013. In the last year of the project in 2014, the sites where field trials would be completed kept under intensive observation.

JDPC official Miah Imam Musa said use of jute geo textiles in prevention of landslide and river erosion, and renovation of rural roads is less expensive, environment friendly and more effective.

Jute geo textile is a kind of gunny sheet that gets mixed with soil after rotting and creates a kind of strength in soil that resisting landslide.

When implemented, the project will increase use of jute in the country and raise its demand in the international market. — BSS

Demand for jute products growing in Rangpur

Demand for jute products growing in Rangpur
Our Correspondent

RANGPUR, Jan 7: An increase in demand for jute products, especially handicrafts has made small enterprises of the north optimistic of going ahead.

More than 150 enterprises in Rangpur division are now producing jute goods such as mats, travel bags, vanity bags, wall mats, sandals, pen-stands, wallets, curtains and various kinds of showpieces, as per the data of various commercial banks and Bangladesh Small and Cottage Industries Corporation (BSCIC).

Some of them have opened showrooms at the district and divisional headquarters to display and sell their products. Most of the enterprises produce jute goods at their own factories and supply them to Dhaka and other parts of the country. Some enterprises are served by homemade jute goods of their contracted craftsmen.

“Though marginal, we are running our business lucratively,” said Masuduzzaman Tuheen, director of Begum Rokeya Craft at Payerabandh under Mithapukur upazila in Rangpur. The jute goods’ demand has incresed in the country for several reasons, Tuheen said. First of all, the craftsmen can procure jute as raw materials for jute goods easily as it grows in abundance in the region, he said.

Information technology, mainly the internet, has opened up many opportunities for them to get elegant designs from various handicraft sites, he said. “We can produce very fashionable jute goods now which was not possible in the past.

A number of government and non-government organisations, including Bangladesh Rural Development Board (BRDB), BSCIC, Jute Diversification Promotion Centre (JDPC), Palli Karma Sahayak Foundation, RDRS Bangladesh and CARE Bangladesh, have been organising trainings for the craftsmen on producing jute goods for years.

About 26,000 female workers in five northern districts have so far been trained up in making and dealing in various jute goods. JDPC has been trying to establish linkages with marketing. The centre was set up in 2002 in Rangpur to promote jute products. “We are working as a bridge between the commercial buyers and enterprisers to share business information,” said Saher Hossain, regional marketing officer of JDPC.

Tuheen alleged that many of the famous handicraft companies in Dhaka purchase jute products from them. But they sell the products with their own trade name of their company showrooms in the capital. He said some enterprises of the north display and sell their jute goods at different fairs across the country.

Anwar Hossain, proprietor of Beauty Handicrafts Factory at Mongla Kutti village under Pirgachha upazila in Rangpur, said he took part in almost all the handicrafts fairs and exhibitions across the country.He said he took part in the Baishakhi Fair at Bangla Academy in Dhaka that concluded recently. He sold Satranjis (jute made multi-coloured mats) worth of about Tk 2 lakh.

Mosharraf Hossain, director of Sonar Bangla Handicraft in Rangpur said, fifty craftsmen are working in his factory who had previously taken part in trainings at JDPC in Rangpur, Each of them earns around Tk 7,000 to Tk 8,000 a month by producing jute goods, he added.

Hossain said, Bangladeshi jute goods have its demand not only in the domestic markets but also in foreign markets. He said he had received an order for supplying jute bags for HP laptops in China. Unicol Solution, a buying house in Dhaka, purchases jute-made Satranji, mobile bags, vanity bags, and shopping bags from him for a Japanese buyer, he added.

Demand for jute bags may rise manifold: study

Demand for jute bags may rise manifold: study

Textiles and Jute Minister Abdul Latif Siddiqui speaks at a workshop on Jute and Bangladesh Economy at the BRAC Centre Inn in Dhaka yesterday. Finance Minister AMA Muhith was also present at the event. Photo: STAR

Star Business Report

Demand for jute bags will shoot up if the law on the mandatory use of jute packaging is fully enforced, according to a study released yesterday.

Demand is expected to rise to 84 crore pieces from 90,000 pieces a year.

It will require 539,200 tonnes of raw jute a year, equivalent to about 77 percent of the total production of the fibre, according to the study “Jute and Bangladesh Economy” jointly carried out by the Centre for Policy Dialogue and Bangladesh University of Engineering and Technology.

The study, done in association with Katalyst, focused on jute-mill machinery upgrades for higher productivity. The study findings were revealed at a workshop at the BRAC Centre Inn in Dhaka.

The additional bags will be needed to package agricultural commodities.

The study was based on data collected from 10 selected jute mills of both spinning and composite categories under the authorities and members of Bangladesh Jute Mills Corporation, Bangladesh Jute Mills Association, and Bangladesh Jute Spinners Association.

Dr Khondaker Golam Moazzem, CPD senior research fellow, presented the economic part of the study. Dr Nur Al Quddus, a teacher of BUET, shared the technical part of the findings.

“We currently use 90,000 jute bags a year for packaging of agricultural and non-agriculture commodities. If we enforce the mandatory jute packaging law, it will increase consumption of raw jute by 500 percent,” Moazzem said.

The study showed there is ample scope to raise productivity in jute mills.

A proper balance of machines and workers will cut costs by Tk 537,000 in nominal terms for a mill a year, according to the study.

Jute procurement during the harvest season could save up to 28 percent of production costs (in nominal terms), compared to the post-harvest season.

Productivity of the mills could be increased by about 10 percent with proper production balancing, proper maintenance practice and scheduled overhauling of the old machinery, the researcher said.

The government should provide timely financing for jute mills and training and educational programmes for employees, he said.

The survey also made a set of recommendations, including an action plan for jute, research and development and investment for technology upgrade.

“It will not be possible to expand the jute sector with the present level of production,” said Finance Minister AMA Muhith.

“There should rapid changes in the production system,” Muhith said.

There has been no product diversification of jute in line with the changing world, and the technology is yet to be developed, he said.

The minister stressed diversification of jute products along with technological development.

Speaking as special guest at the event, Textiles and Jute Minister Abdul Latif Siddiqui said: “We have to stop the traditional use of jute to get the full potential of the sector.”

The government is working on the diversification of jute products. “We are now working on making jute pulp under a pilot programme. We plans to produce around 25,000 tonnes of jute pulp a year,” Siddiqui added.

Bangladeshi jute goods to enjoy duty-free access to India

Bangladeshi jute goods to enjoy duty-free access to India
Business Desk

All Bangladeshi jute and jute goods will enjoy duty-free access to India as Delhi has withdrawn all para-tariff duties on the items on 23 December following a request of the Bangladesh government. The Indian government on January this year imposed 14 percent duty including 4 percent for countervailing duty on Bangladeshi jute and jute goods of HS Code 5307, 5310, 5607, 5705 and 6305, according to a handout.

Following a request from the Bangladesh government, the Indian authority has withdrawn duty on items bearing HS Code 6305 on 14 February, while that for item under HS code 5310 and 5705 was lifted on 20 April and 5307 and 5607 on 23 December this year.

Meanwhile, in a statement, the commerce ministry has expressed concern over news items published in different national dailies over hike in prices of essentials.

The commerce ministry believes that the prices of essentials at the kitchen markets are going downward. Edible oil is an import-based item and the prices of loose edible oil went up in the market with rise in the rate of US dollar.

Bangladeshi jute, cotton bags ‘may shine in Tower Hamlets’

Bangladeshi jute, cotton bags ‘may shine in Tower Hamlets’
Author / Source : UNB

Dhaka, Dec 23: Environment-friendly jute and cotton bags from Bangladesh might grab a wider market access to Tower Hamlets Council in East London, said Executive Mayor of London Borough of Tower Hamlets Lutfur Rahman. Rahman said this when a delegation of Youth Initiative UK (YIU), a non-government organisation of Bangladeshi youths operating in London, met him recently at his Idea Store’s office in London, according a message received here on Friday.

YIU chairperson Mohammad Adu Haseeb led the delegation while project officer Syed Rabius Shams, monitoring officer Esrat Jahan Mita and volunteer Nazmul Haque were also present.

Lutfur Rahman showed interest in Bangladeshi jute and cotton bags and exchanged views on issues related to promoting social business practice by introducing environment-friendly products like jute and cotton bags for use in everyday shopping.

Haseeb said they had a very fruitful meeting with the mayor and they discussed promotion and popularisation of environment-friendly jute and cotton bags in London. He said jute and cotton bags can be used as a substitute for poly bags throughout Tower Hamlets area as part of efforts to save the environment.

Rahman appreciated the delegation’s initiative and assured his all-out support to YIU in promoting ‘Social Business’ within Tower Hamlets.

Rabius Shams, the YIU Project officer, said they emphasised the feasibility and sustainability of launching an eco-friendly initiative titled “Promoting Sustainable Use of Jute and Cotton Bags (Eco Bags)” to substitute poly bags throughout Tower Hamlets under social business.    UNB

Joint venture plant to be set up to produce spare parts for jute mills

Joint venture plant to be set up to produce spare parts for jute mills

DHAKA, Nov 24 (BSS) – A state-owned Bangladeshi enterprise will set up a joint venture plant upgrading the existing facility with an Indian company to produce spare parts for jute mills, officials said here today.

“We hope the proposed joint venture plant will export machinery and spare parts after meeting the needs of jute mills in the country,” Textiles Minister Latif Siddiqui told newsmen at his ministry.

He said the draft of a memorandum of understanding (MoU) on the proposed venture between the state-owned Galfra-Habib Limited and Indian Lagan Engineering Company Limited (LECL) was finalized today at an inter- ministerial meeting as the deal is expected to be inked next week.

Earlier briefing newsmen on the proposed venture, secretary of the ministry Mohammad Ashraful Moqbul said the proposed venture would cost Taka 6 crore of which the Bangladesh Jute Mills Corporation (BJMC) would provide half of the amount while the Indian company would bear the rest.

Moqbul said the Chittagong-based Galfra-Habib Limited, an affiliate of the BJMC, was so far producing tools and spare parts for jute mills but under the JVC it would now be upgraded and modernized.

Moqbul said that Lagan would install modern manufacturing machine and provide technical assistance to the joint vsture plant.

Bangladesh currently needs to import spare parts at high price but the proposed venture could supply them at a much cheaper price, he said.

“After signing the MoU an operational agreement will be signed for final production,” the secretary said.

Earlier, the draft was approved after vetting from the Law and Parliamentary Affairs Ministry.

Minister for Textiles & Jute Abdul Latif Siddique who presided over the meeting said the government has taken the initiative to make Galfra-Habib Limited a modern and profitable tools factory in the country.

“Awami League led government as well as Prime Minister Sheikh Hasina has consented to reopen jute mills, which were closed during the last BNP-Jamaat regime, said Abdul Latif Siddique. He said the government reopened two jute mills and two more will be reopened in March 2012.

Among others, secretary of the ministry Md Ashraful Moqbul, Chairman of Bangladesh Jute Mills Corporation (BJMC), director Foreign Affairs Ministry Md Harun Al-Rashid, Dr Narayan Chandra Singh, financial analyst of Finance Ministry, joint secretary of Law and Parliamentary Affairs Ministry Abu Ahmed Jamadar and deputy secretary of Commerce Ministry Md Sadar Ali Biswas, Finance and Law and Parliamentary Affairs were present at the meeting.