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Current Scenario of Jute Sector in Bangladesh: Domestic and World Perspective

M. M. U. Molla
Principal Scientific Officer
AERS, BARC, Dhaka.

S. A. Sabur
Professor
Dept. of Agribusiness & Marketing, BAU, Mymensingh.

S. Akhtar
Scientific Officer
On-farm Research Division, BARI, Gazipur.

Abstract/ Executive Summary:

The aim of the study was to find out the present scenario of Bangladesh’s jute sector in domestic and world perspective mainly based on the secondary sources. The study found that private sector plays a dominant role in trading of raw jute and also in jute products manufacturing and marketing over the last two decades in Bangladesh. The country accounts for 35% of the total world production and about 90% and 60% of the total world exports of raw jute and jute products, respectively. About 62% of the total raw jute is produced in Faridpur, Jessore and Kushtia regions of Bangladesh. During the last decade, quantity exported and real export prices of raw jute and jute goods increased substantially over the previous decade. Yarn/twine occupied the topmost position among the traditional jute products, which is about 69% of the total export. Bangladesh Jute Spinners Association (BJSA) has found the pioneer exporters of jute goods in which about 64% of the total jute goods were exported by them. Raw jute and jute goods export earnings in real term increased significantly in 2010-11 compared to the last decade. In 2010-11, the share of Bangladesh in raw jute and jute goods production has increased significantly around 42% and 31%, respectively of the world production.

Keywords: Current scenario, Jute,Domestic and world perspective

Location: AERS, Bangladesh Agricultural Research Council, Farmgate, Dhaka

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Jute

Objectives:

To know the current situation of jute sector in Bangladesh.

Methodology:

The present study was mainly based on published and unpublished data of various national and international agencies namely, Bangladesh Bureau of Statistics (BBS), Bangladesh Bank, Food and Agriculture Organization (FAO), International Jute Study Group (IJSG), Bangladesh Jute Spinners Association (BJSA), Department of Jute (DJ), Department of Agricultural Extension (DAE), Bangladesh Jute Mills Corporation (BJMC), Bangladesh Jute Mills Association (BJMA), Bangladesh Jute Spinners Association (BJSA), Bangladesh Jute Association (BJA) and Bangladesh Jute Research Institute (BJRI). Key informants from DJ, BJA, BJMC, BJMA, BJSA and IJSG were also interviewed to pickup a clear scenario of this sector as a whole. Data were collected during the period from July 2010 to June 2011 through face to face interview method.

Source of Information: ISSN: 2309-7892, Volume: 2, Issue: 2, Page: 136-144, October-December, 2014

Article Link (Online Journal): http://www.ijbssr.com/currentissueview/14013066

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Both public and private sectors play an important role in trading raw jute and also in jute products manufacturing and marketing in Bangladesh. Over the last two decades, private sector plays a dominant role compared to public sector. Average share of traditional jute products produced by the private sector is about 77% of the total production in Bangladesh. Still Bangladesh is the largest supplier of jute and allied fibres (JAFs) in world trade. The country accounts for 35% of the total world production and about 90% and 60% of the total world exports of JAFs and JAF products, respectively. The study found that Faridpur regions covered 30% of the total jute growing areas and about 62% of the total raw jute is produced in Faridpur, Jessore and Kushtia regions of Bangladesh. During 2010-11, production of raw jute was estimated to about 1405 thousand MT which is achieved from 587 thousand hectares (ha) of land in Bangladesh. The highest yield was observed in 2010-11, which is about 16% higher than the last decade (2001-02 to 2009-10). Quantity exported and real price of raw jute during the last decade increased substantially by 39% and 22%, respectively over the previous decade. Export prices of jute goods increased significantly due to recent increasing world demand of JAF products. During 2010-11, yarn/twine occupied the topmost position among the traditional jute products, which is 69% of the total export. In monetary term, yarn/twine alone accounting for 71% of the total export receipts. BJSA has found the pioneer exporters of jute goods in which about 64% of the total jute goods were exported by BJSA. Raw jute and jute goods export earnings in real term increased significantly in 2010-11 compared to the last decade. However, the real price of raw jute at growers’ level in Bangladesh during the last decade has increased significantly over the previous decade. But, jute growers of India are always getting higher price in real term for their product compared to the jute growers of Bangladesh and it was about 45% higher than Bangladesh in 2010-11. In 2010-11, the share of Bangladesh in JAFs production has increased significantly around 42% of the world production. On the other hand, the share of Bangladesh in jute goods production was nearly 31% of the world production. On an average, Bangladesh solely exports about 61% of the total world export of JAF products during the last decade. Taking into account major changes that are taking place in the global market, new initiatives will be required to access the potential opportunities. Bangladesh will need to pursue a number of strategies to regain her lost position in the global market. Government can assure some policy support for producing quality jute with low cost, providing incentives for increasing productivity, ensuring fair prices for the farmers and market expansion both local and world market.

Knowledge Management: Journal