Policy & Prospect of Jute & Allied Fibers with
Special Reference to Bangladesh
Dr. Mohammad Mahbubur Rahman
Secretary
Ministry of Textiles & Jute
Govt. of the People's Republic of Bangladesh
Bangladesh Secretariat, Dhaka-1000
Bangladesh
Abstract
Bangladesh being one of the leading jute producers of the world enjoyed the monopoly in marketing
of jute and jute goods in the world market till mid-seventies. Bangladesh produces 5.0-5.5 million
bales of raw jute annually out of which 2-2.5 m bales are exported and the rest are consumed by the
local jute mills. About 70-75% of the total jute goods produced in the country is exported. Bangladesh
still meets 50-60% of the world's demand of jute goods and 90% of raw jute. More than 150 composite
and twine jute mills in public and private sector of Bangladesh are producing more than 6.5 lac MT
traditional along with various diversified jute products and twines/yarns.
Government of Bangladesh is trying to rejuvenate the jute sector through various activities and policy
decisions. Introduction of High Yielding Variety (HYV) jute seed, popularizing the use of modern
agricultural practices, encouraging cultivation of good quality fibre, promotion of jute diversified
products (JDPs) etc. are the major areas of intervention of the Government of Bangladesh. A huge
demand for various diversified jute products viz. carry/shopping bags, shoes, composite materials,
geo-textiles, home textiles, handicrafts, gift items, pulp and paper etc. is continuously increasing in
both local and foreign markets.
The future prospect of this eco-friendly natural fibre-jute is expected to increase day by day with
effective support from the national governments of the producing countries through adoption of
appropriate policies like banning of synthetic packaging materials and enactment of regulations
favorable towards its cultivation, diversification and marketing.
1.0 Introduction:
Bangladesh with her location in south East Asia have a long and rich historical and cultural heritage.
She has a population more than 140 million. Total area of the country is above 147,570 sq km of
which about 11.3 million (79%) hectare is flood plain. Bangladesh is an agro-based economy
accounting for 30% of countries GDP and employing 65% of labour force. Jute is one of the major
cash crop in Bangladesh.
Jute, Mesta & Kenaf are commonly called jute and allied fibres in jute family. It is a ligno-cellulosic,
composite bast fiber. It is a rapid growing, photo-reactive crop only 120 days are needed for its
harvesting. It grows abundantly in Bangladesh and India and moderately in Nepal, Thailand, China,
Vietnam, Indonesia, Myanmar, Brazil and some parts of Africa.
1
2.0 Importance of Jute Sector to the Economy of 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 2nd largest industrial employer in the country and about 10% of the
total labour force is engaged in jute sector.
The land under Jute cultivation, yield per acre, number of Jute mills and the production and export of
jute & jute goods comparing with world product is given in Annexure-1.
3.0 Govt. Policy to sustain and revive the jute and jute Industries:
The cultivable land is decreasing day by day due to increase of population and crop diversification. To
meet the demand, the Govt. of Bangladesh is trying to get maximum yield of jute crop. The Ministry
of Textiles and Jute is trying for total upliftment of jute sector starting from production to marketing.
Government is also trying to popularize the use of modern retting system/process in the country. The
Govt. of Bangladesh has taken some steps to rejuvenate the past glory of jute which are described
below in brief.
3.1 National Jute Policy (2002 & 2007):
Government of Bangladesh recognized the significance of Jute in Bangladesh's economy, which
provides sustenance to more than 35 million people including Jute farmers, businessmen, workers,
laborers and self employed artisans and weavers in the country. Taking note of the new opportunities
presented by changing global environment of integration in the development of natural fibres, the
strength and weakness of the Jute sector in Bangladesh and acknowledging the growing demand for
diversified and innovative Jute product in the world Market, Govt. of Bangladesh announced
"National Jute Policy-2002" which is going to be revised as "National Jute Policy-2007" to redefine
the goals and objectives. The main objective of the policy is to facilitate the Jute sector in Bangladesh
to attain and sustain a pre-eminent global standing in production of raw Jute and in the manufacture
and export of Jute goods by enabling the Jute Industry. The policy seeks to strengthen R&D activities
in agricultural practices with a vision to ensure remunerative prices to Jute farmers by enabling them
to produce better quality Jute fibres and enhance per hectare yield of raw Jute.
In its last Council IJSG has adopted an important & up-to-date dynamic Road Map for the
development of jute sector both national & international perspectives with specific goal & objectives
having a strategic country programmes. Bangladesh has already started to incorporate and update its
jute policy according to Road Map. Moreover very recently government of Bangladesh has taken
2
decision for the observance of "International Year of Natural Fibres 2009" declared by UN General
Assembly in a befitting manner in collaboration with IJSG.
For achieving the goal and objective as mentioned above following outlines have been undertaken for
upgrading national jute policy;
 Retain/increase market of the traditional jute products
 Develop new application of traditional products
 Development of new products using the advantages of natural fibres
 Improve fibre quality
 Improve productivity and product quality
 Make use of sustainable development agenda
 Increase consumer awareness by highlighting the environment friendliness of jute and
kenaf
 Address the trade issues
 Address supply and management issue
 Create R&D net work
 Create employment opportunities and develop human resources
 To provide due price to the farmer keeping in view the production of raw jute.
 Restructuring of jute industry to make it commercially profitable and viable.
 Research towards development of diversified products of jute goods and introduction and
expansion of their uses in the local and foreign market.
 Adequate production and supply of some diversified jute items to meet wide demand.
 Production of food grade jute bags as per compliance of the foreign buyer to meet
international demand.
 Maintain liaison and cooperation with local and foreign Research Laboratories, universities
and other bodies in respect of research work on jute & jute products.
3.2 Research and Development:
3.2.1 Bangladesh Jute Research Institute (BJRI):
Bangladesh Jute Research institute (BJRI) is the premier institute exclusively engaged in Jute research
& development. Established in 1951 it is working on R&D, technology transfer, service, product
development, Machinery development, research programmes sponsored by the Government and other
donor agencies and is equipped with facilities, laboratories and other related facilities. It may be
mentioned here that the yield of common cultivation variety of jute is 4.0 bales per acre in average.
But Bangladesh Jute Research Institute (BJRI) has developed a new variety of jute, which can produce
8.0 bales of jute per acre.
3.2.2 Bangladesh Jute Mills Corporation (BJMC):
Bangladesh Jute Mills Corporation (BJMC) is one of the biggest Corporation involved in Jute goods
manufacturing. The research division of BJMC is working on production of appropriate and equivalent
quality of Jute cement bag. As a substitute of synthetic bags, production of food grade Jute bags as per
IJSG standard, production and supply of rot proof jute fabric, production of jute polished yarn as per
buyers requirements, invention & production of consumed household and diversified Jute items. One
of the major development of BJMC Research Division is Jute nursery pots of various sizes. Due to
Govt prohobitation on production, sales and use of polythene with effect from 1 st March 2002, the
country is now using these pots in various nursery application.
3
3.2.3 Increase Yield of Raw Jute:
In order to increase yield per acre of raw Jute with the introduction of High Yielding Variety of Jute
and Jute Seeds, Department of Jute is implementing a project named "High Yielding Variety of Jute
and Jute Seeds Production" in the country. The main objective of the project is to bring about a
quantitative as well as qualitative improvement in the overall production of jute in the country through
distribution of better inputs such as high yielding varieties of seeds, chemical fertilizers, insecticides
and essential equipment and imparting necessary agronomical training to the selected cultivators of the
target areas free of cost. The project has two components i.e. seed multiplication and producing quality
fibres. This project is being undertaken by Directorate of Jute which has infrastructural framework
over the country, major components of the project is given below:
Seed multiplication:
To introduce improved variety of seeds instead of traditional seeds being used by the farmers.
i) To ensure supply of HYV jute seeds to the farmers at large.
ii) To achieve a comparative increment of improvement in the yield and production chain of jute
through adoption of seed based technology.
Quality fibres:
To introduce modern methods and techniques in the cultivation of HYV.
ii) To reduce production cost of jute by raising yield per acre.
iii) To impart training to the cultivators improved methods of retting of jute with an eye to ensure
production of quality jute and to organize field exhibitions and strengthen extension programme if
necessary.
iv) To impart necessary training to the cultivators for acquainting them with the grading of jute so that
they might get fair price for their product.
v) To popularize the use of natural fibre instead of synthetic fibres.
3.2.4. Introduction of Diversified Jute Production:
Bangladesh is very rich in bio-diversity. A wide range of flora is found here. Though Bangladesh is
famous for jute and allied fibers, garments industries swept in and have developed due to relative
advantage & cheap labor cost. As there is the Multifibre concept of blending jute with other natural
and synthetic fibres, jute has bright future for using them in the various textile areas. Taking in view
the prospects, The Govt. of Bangladesh has started the diversification of jute uses with its limited
resources. It needs wide support for production and marketing of such diversified products.
Consequently the Govt. of Bangladesh initiated policy programme for the production of diversified
jute goods through private sector. To execute this programme, Jute Diversification Promotion Centre
(JDPC) was established in 2002. The objective of JDPC is to provide extension services to the private
sector for establishing Industry for the production of high value added diversified jute products.
Within this short period and considering total industrial growth and scio-economic conditions
particularly new generation entrepreneurship development, a few basic diversified jute products units
were established. But they need various facilities to improve the quality of their products & marketing
which include:
4
-
-
Modern Know-how about wet processing
Design and Fashion improvement
Productivity and quality control
Facilitating to market accessibility and market promotion both home & abroad
Entrepreneurship Development
Training, modification and popularization
To overcome these JDPC time has undertaken various training programmes with the help of BJRI,
DTC (GTZ), Handloom Board, Small and Cottage Industries. Some of these programmes have been
undertaken with the financial support of IJSG. Moreover, JDPC in the mean time identified 222
products and their production technologies and classified them into short, medium and long term's
basis. Here it can be pointed out that within a short period of time a quite reasonable number of
diversified jute industries of basic, medium, small and micro level have been established.
Again the activities of JDPC have got great momentum when it has started the execution of various
activities of "Small Scale Entrepreneurship Development in Diversified Jute Products" an IJSG
sponsored project funded by CFC. In fact JDPC has undertaken wide scale plan & programmes for
entrepreneurship development and skill training for the work force involve in producing diversified
jute products by handlooms at grass root rural level. JDPC is also helping with the support of market
promotion of these production of these products by organizing fair, exhibition, buyers-sellers meetings
with its limited resource and constrains.
4.0 The Problems and Issues in Jute sector in Bangladesh:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
xv.
xvi.
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.
Low export price of jute goods in the overseas market.
Lack of skilled labour 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
5
of coordination create 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.
5.0 Solution/How to overcome the problems of jute sector:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
xv.
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.
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 fibre 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 a packaging materials for
specific sector like food grain, cement, sugar, fertilizer etc.
The Jute industries in Bangladesh need immediate Balancing, Modernization and
Rehabilitation (BMR) Programme 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 organise 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.
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 programme should be prepared
in consultation with the Industry and implemented through the channels of exiting
educational/training Institutions.
The Jute Sector Restructuring programme (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 this R&D organisations 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 maximise internal
usage of diversified new jute products including usage by the relevant government
departments.
6.0 Prospects/ Strengths of Jute Sector:
Although jute sector is striving for its existence with a huge accumulated financial burden on it and
losses being incurred every year, yet the rays of hopes are not totally disappeared. As renewable,
biodegradable, easily disposable and environment friendly natural commodity, there is a good prospect
of Jute and Jute products which is described in brief below:
6

A global consciousness has already developed against the use of artificial fibres and synthetic
products, which are now being replaced by the environment friendly jute goods.

The Govt. of Bangladesh banned production, sale and use of polythene from 01 March, 2002.
As a result the demand of Jute & Jute goods is increasing.

There is a huge local demand of jute stick as a primary substitute for diesel/wood. Moreover,
Jute sticks are very useful material for various purposes as fencing and roofing materials for
making sheds. These are also used as important imdustrial raw material for making particle
board whose demand is increasing in national and international Market.

Due to increasing price of Jute & Jute goods more entrepreneurs (SMEs) are entering the
market for Jute business and introducing new Jute Diversified Products.

Series of R&D project and programmes had been implemented and these have generated new
technologies for production of diversified jute products. There is huge demand of Diversified
Jute Products in National and International Market.

JDPC has established contact with different foreign bodies which are interested in R&D
activities along with commercial exploration of diversification of jute uses like, IFTH, West
Australian Agriculture Department (wool service desk), Toyata Tsusho Corporation, GTZProgress, Innovation Bio-Fibrers Corporation AG, Rovotex AG, Miaco International, MITSUI
& Co. LTD, Asia-Pacific Coalition for Environment, Euro Mode Fashion, General Motor,
Cosmic International Inc, Freudenberg-Vilene, different Universities of Europe and USA,
Dong Bang Textiles Ltd. etc. The successful completion of these activities may open up a
new horizon in Jute sector.

The first and foremost strength of the Bangladesh Jute Industry is that it is based on the raw
material that is available at the doorstep. Moreover, the quality of the raw material is the best
available in the world. Bangladesh is the natural abode of jute cultivation on account of its
climatic situation and soil condition.

Bangladesh is recognized as one of the major jute producing countries.

Jute is a rapidly growing crop with 120 days for its production. In addition, Jute and Jute
products are renewable, biodegradable, eco-friendly, easily disposable and natural commodity.

The availability of cheap labour in Bangladesh is a known fact and jute industry is bestowed
with this factor of production. The activities pertaining to the traditional jute industries do not
require much skilled labour. Again, the skill that is required can be improve through simple
training on the job itself.

There are educated and professionally experienced people in the country to run industries
including jute industries.

Bangladesh jute industry is based on old technology and machinery. New technologies for
production of diversified jute products are now available.

The Ministry of Textiles & Jute is going to be published its latest Jute Policy/2007
highlighting the importance of jute in the economy of Bangladesh, its prospects and problem
quite elaborately.
7

Bangladesh is in jute business for decades. There are adequate arrangements for facilitation of
jute trade inside and outside the country. An elaborate system exists for procurement and
disposal of raw jute. Jute goods produced by public sector mills are marketed centrally by
BJMC. There are standard procedures and contract forms for jute trade exist in private sector
mills under BJMA and BJSA.

Jute is one of the most versatile natural fibres used as raw material for packaging, textiles, the
non-textile and agricultural sectors.

Some jute products are naturally fire resistant.
7.0 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 favourable 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, colours, designs and quality.

Extensive governmental support in the jute sector by neighbouring countries made their Jute
products more competitive in international markets.
8.0 Conclusion:
Bangladesh can claim as a country of jute as every where 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, non toxic, 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. A huge
potential market of these products are created in the developed countries. To convert these potential
market 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.
The era of jute is not ended. It is the beginning of jute in new Dimensions & Perspective.
8
Annexure-1
The land under jute cultivation, yield per acre, number of Jute Mills and production and export of jute
& jute goods comparing with world product.
Table-1: The land under jute cultivation and yield per acre:
Year
Area
(in lac acre)
13.00
12.84
13.00
12.50
11.50
11.25
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
Production of raw jute
(in lac bale)
51.83
51.37
56.85
53.30
49.86
53.50
Yield per acre
( bale/acre)
3.99
4.00
4.73
4.26
4.34
4.76
Table-2: Production and Export of Raw Jute
Year
World
(Avg)
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
126.65
148.81
150.59
155.62
-
Production
Bangladesh
Share
of World
(Avg)
Bangladesh
(Avg)
(Avg)
45.26
35.74
16.83
51.37
34.52
16.47
56.85
29.27
26.03
53.30
34.25
19.17
49.86
63.26
-
Fig in Lac Bale
Export
Bangladesh
Share
of
(Avg)
Bangladesh
(%)
15.55
92.39
14.11
85.67
25.19
96.77
19.05
99.37
17.04
24.47
-
Table-3: Production and Export of Jute Goods
Year
World
(Avg)
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
-
Production
Bangladesh
Share
of World
(Avg)
Bangladesh
(Avg)
(%)
4.83
6.44
5.36
6.43
5.16
6.76
5.17
7.16
5.24
5.69
-
9
Fig in Lac M.T
Export
Bangladesh
Share
of
(Avg)
Bangladesh
(%)
4.24
66
4.41
69
3.98
59
3.89
54
4.20
4.40
-
Table-4: Raw Jute Production, Internal Consumption, Export Quantity & Export Value
Production
Year
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
42.93
51.37
56.85
53.30
49.86
63.26
Internal
Consumption
Volume
15.55
14.11
25.19
19.05
17.04
24.47
32.75
32.95
30.40
33.96
33.46
36.42
Volume: in lac bale
Value: In Cr. TK ( in Mill US$)
Export
Avg. Export Price Per
Bale in TK.(US$)
Value
350.97 (65.43)
2258.00 ( 42.09)
375.35 (66.06)
2660.17 (46.82)
517.66 (82.46)
2055.14 (35.71)
554.91 (79.70)
2387.72 (41.42)
563.10 (93.30)
3034.97 (54.73)
977.27 (144.86)
3993.62 (59.20)
Table-5: Jute Goods Production, Internal Consumption, Export Quantity & Export Value
Volume: in lac MT
Value: In Cr. TK ( in Mill US$)
Production
Internal
Export
Avg. Export Price Per
Consumption
MT in TK.
Year
Volume
Value
2000-2001
4.83
0.87
4.26
1204.01 (224.50)
29000
2001-2002
5.36
0.85
4.41
1341.37 (236.07)
31000
2002-2003
5.16
0.95
4.37
1485.37 (256.34)
39000
2003-2004
5.17
0.94
4.72
1448.10 (245.60)
30680
2004-2005
5.24
1.07
4.20
1543.08 ( 255.52)
35000
2005-2006
5.69
0.79
4.40
1610.48 (238.73)
39000
Table-6: Jute mills statistics :Financial Year- 2006-2007 (Upto Dec'2006):
Name of Organistion
Number of Jute Mills
Closed
Running
BJMC
BJMA
BJSA
Total:
25
54
50
129
2
13
0
15
_______
10
Total
27
67
50
144