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The Market Prospect or Export Potential of Diversified Jute Products in Bangladesh

Nafisa Islam Peu
ID: 15304103 BRAC Business School

Abstract/ Executive Summary:

Bangladesh is one of the major producers and leading exporters of jute and diversified jute products. Jute diversified product (JDP) industry in Bangladesh is known as an un-official, ordinary and small market comparing to other countries such as India. Although, Bangladesh stands in the second position among jute producing countries despite the fact that our JDP industry is under advancement. About 5% of total foreign exchange earnings and 4% of country's GDP earned from this sector. Bangladesh for many years has been making a successful contribution on jute sectors adding a handsome turnover to the country's export earnings. Along with foreign demands our domestic consumers are changing their perception and attitude towards jute products. Therefore, in this study, I tried to portray the overall scenario of the JDP market prospect along with a prior discussion about the previous history and market situation of the JDP industry. It was also one of my keen intentions to elaborate the possibilities of JDP's establishment as worthy products into the modern era of export market and it's commonly acceptance among general public by employing specific innovative approach and methods of study which includes, interviews based on semistructured questionnaire along with data collection, online survey and desk research. After a careful observation and analyzing the responses from personal interviews it can be stated that the potentiality of JDPs in the export market is promising for the long run. The results showed that JDP industries prospect is showing a gradual but significant advancement owing to the fact that mass people are now taking a step forward in the favor of using eco-friendly products as there is a major concern about the environment on the rise. According to the study, the consumption, as well as the popularity of JDPs, showed an upward trend and their possibilities for business is ever-increasing. Value addition in the JDPs, reforming the JDP value chain are the most effective ways to build a potential market. If the government take a step ahead to reconstruct the business infrastructure by investing money and labor and most importantly enacting the proper policy Bangladesh JDP market will undoubtedly outrun the markets of competitive countries. To aid as a helping hand different private organizations and agencies must play a decisive role and stand beside the government to achieve the goal. In spite of having many obstacles in jute sectors especially less share percentage in JDP sales revenues, various diversified jute products are recently emerging to be potentially huge selling items in the far future. Some recommendations have been made which could possibly change the current situation of JDP industry and help to earn foreign currency. It is crystal clear that there is a high possibility of changing the notion on JDP if everyone would come forward to make a huge difference in the arena of export market and stretching their helping hand for earning foreign currencies.

Keywords: Market Prospect, Export Potential, Diversified Jute Products, Bangladesh

Location: BRAC University, Dhaka

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Market analysis

Objectives:

1. To identify the variation of diversified jute products in our country as well as in the foreign market. 2. To identify the current situation in export market on diversified jute goods. 3. To identify the advantages of using diversified jute products. 4. To recommend to some extents which could possibly add some values to our jute industry

Methodology:

4.1.1 Jute growing areas: Jute is grown throughout the whole country in plenty. Bangladesh saviors an agro-ecological comparative advantage in terms of jute production as it acts as a drainage basin of massive rivers being presented with soil and availability of non-stagnant water for jute retting. Total land area of this country is 13 million hector and agricultural lands occupy about 8.44 million hector. In the years 2010-11; 0.803 million hector land was used for cultivating jute which is about 6% of the total land area. The jute growing areas are broadly divided into three regions:

1) Jat area (Brahmaputra alluvium): This area consists of parts of the districts of Dhaka, Mymensingh, Tangail and Comilla of Bangladesh. These areas are often flooded during the year and thus fresh slits are carried to these areas which are very useful for jute cultivation. Jat area is renowned for highest quality jute fibers.

2) District area (Ganges alluvium): Kushtia, Jessore, Khulna, Rajshahi, Pabna and Dhaka districts are the parts of this area. There are two kinds of district jute namely, “Hard district” and “Soft district”. Hard district is relatively better than the soft district in terms of quality. District jute stands second in terms of quality.

4.2 Diversified Jute Products (JDPs): Before getting to know about JDPs in detail let?s review some literatures which signifies JDP. ? After a detailed analysis of various issues of jute industry, SurinderSud, in an article, gave his opinion that jute industry should no longer thrive only unconventional packaging items and must, therefore, change its line of production to include some of the diversified value-added products. Besides, it would have to go in for innovative marketing techniques aimed at satisfying a large number of individual customers rather than only a few bulk purchasers of gunny bags. ? According to R.N. De, jute commissioner, “the problem with Indian exporters is that they depend much on traditional goods ignoring the tremendous scope for exporting diversified items. “Even the high-powered, „L.V. Saptarishi committee? appointed by the textile ministry to go into the gamut of issues dogging the industry, was of the view that unless it could put in efforts at diversification, the industry would fall by the wayside.

Source of Information: THE MARKET PROSPECT OR EXPORT POTENTIAL OF DIVERSIFIED JUTE PRODUCTS IN BANGLADESH BUS 400: Internship, Semester: Fall 2018; Date of submission: 13th December, 2018

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The jute growers as well as the economy of Bangladesh as a whole have experienced a new sense of elegance in the business sector of diversified jute products as it opened up a new window of opportunity in both domestic and international market. With the assistance of modern technology not only raw jute but products of jute that are never imagined to be possible to manufacture are now being produced. This golden opportunity needs to be grabbed by both hands. No parts of jute are now wasted, as even the ashes of jute sticks are processed to make innovative products with the help of modern technology. We have an era dominated by jute products waiting ahead of us where manufacturing is just the beginning. Without proper marketing strategy along with proper marketing channel no industry can achieve sustainability. In order to do that extensive research on proper marketing strategy and exploring the possibilities of creating proper marketing channel of diversified jute products should be conducted if we want to emerge as the largest DJP producing country in the whole world.

Knowledge Management: Report/Proceedings