Jute Have Huge Market Potential as People Go Eco-friendly

The prospects of jute brighten due to the use of environment friendly fibre to make various products, UN-sponsored International Jute Study Group (IJSG) believe.

Headquartered in Dhaka, 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.

IJSG is an inter-governmental panel set up under the United Nations Conference on Trade and Development (Unctad) to function as the international commodity body of jute, kenaf and allied fibres.

Smallholder Quality Penalty SQP Effect in Bangladesh

Jute has long been called the ‘golden fibre’ of Bangladesh and is also its third largest foreign exchange earner. However, the smallholders engaged in producing jute fibre complain that they are unable to get a fair price for their goods even when they produce the best possible quality.

The problem seems to be caused by information asymmetry between smallholder jute farmers and buyers, particularly with regard to retting processes and grading. Retting of jute fibre in water is an essential process to extract fibre from the jute stick. It determines for the most part the final quality of the jute fibre.

Updated Jute Report – Bangladesh Jute Association

JUTE Price: VARIETY BALES FOB Narayanganj

(One bale = 180 kg) (Taka per bale)

Ready Position (in taka) Bangla white special (BW special) 12,800 Bangla white A (BWA) 12,500 Bangla white B (BWB) 11,600 Bangla white C (BWC) 10,100 Bangla white D (BWD) 9,650 Bangla white E (BWE) 9,200 Bangla tossa special (BTS) 13,100 Bangla tossa A (BTA) 13,800 Bangla tossa B (BTB) 11,900 Bangla tossa C (BTC) 10,400 Bangla tossa D (BTD) 9,950 Bangla tossa E (BTE) 9,500

WRS/TRS, HABIJABI, CUT ROPES Bangla white rejection (BWR) 8,250 Bangla white habijabi (BWH) 6,300 Bangla tossa rejection (BTR) 8,500 Bangla tossa habijabi (BTH) 6,300

Demand for Jute Products High in European Market

As stress on artificial fibres as a packaging material in preference to natural ones is growing, the prospects for jute, popularly known as the Golden Fibre, are opening up further. The International Jute Study Group (IJSG) based in Dhaka recently also echoed this view.

Bangladesh so far has hardly been able to make the most of this possibility, thanks to half-hearted approach of the government to provide enough incentive to the growers of this cash crop. Every year jute growers get frustrated with their products as they do not get fair price in the market. As a result, farmers are losing their interest in growing jute.

China is a Good Market For Bangladeshi Jute Goods

Bangladesh start exporting jute goods in china, one of the major importers of the country’s raw jute. Bangladesh got the opportunity as the Chinese producers are losing interest in manufacturing jute goods due to high production cost. The production cost of jute goods has increased tremendously in China mainly because of increasing labor costs. Bangladeshi jute goods exporters found the rising production as well as the labor cost as a boon that ushered a new opportunity for exporting jute goods, especially hessian and jute bags in the Chinese market.

Sri Lanka Offers Land For Jute Cultivation

Bangladesh received a request from Sri Lanka on jute cultivation in its northwestern province Puttalam where Colombo assured of giving long-term lease of lands. The request came in a meeting between Sri Lankan President. Mohinda Rajapaksa and Bangladesh Prime Minister Sheikh Hasina in Colombo.

Jute Diversified Products Come Into Focus

A workshop of Business Facilitation Unit [BFU] on jute diversified products titled “Jute: an eco-friendly alternative for a sustainable future” undertaken by the Traidcraft Exchange, a UK-based international development charity.

The four-year project, which started in March 2010, aims to promote economic prosperity by encouraging more eco-friendly sustainable consumption and production of jute diversified products (JDP).

The project, co-funded by the European Union and being implemented in partnership with TARANGO, a non-governmental organisation, is a multi-country project being implemented in all over Bangladesh and West Bengal, India.

Exploring New Jute Markets Abroad

Jute was once deemed the golden fibre of Bangladesh and its exports brought a steady flow of foreign exchange in the 1970s and earlier. But gradually, as the world developed a love for plastic, its demand waned and the jute industry in Bangladesh became a losing concern.

However, plastic proved to be ecologically destructive and so, after its banning in many places, jute has once again become an item of demand not only for jute bags and jute sacks but also for daily items with eco-friendly ‘green’ living advocating usage of bio-degradable products. While in the last fiscal year (FY2011) the earning from jute exports was $1.1 billion, in the current year, global recession has emerged as a main obstacle with earning from the first six months stalled at $477 million.

Jute Diversified Product Manufacturing Unit To Be Set Up in Mongla EPZ

A jute diversified products manufacturing industry will be set up in Mongla Export Procession Zone at a cost of US$ 36.94 million.

Rupsha Jute Diversification Limited, a fully Bangladesh owned company, signed an agreement with Bangladesh Export Processing Zones Authority (BEPZA) today for setting up the industry.

BEPZA general manager (Investment Promotion) A.Z.M. Azizur Rahman and managing director of Rupsha Jute Diversification Limited Major (retd) Md. Modasser Hossain signed the agreement on behalf of their respective organizations, a BEPZA press release said.

The industrial unit is expected to create employment opportunity for 2,052 people.

Export Trading Group Interested to Import Jute Bags From Bangladesh

Export Trading Group (ETG), a Tanzania- based African export trade body, today proposed to import jute bags from Bangladesh.

The proposal came when an ETG delegation met Industries Minister Dilip Barua at his office here.

Mahesh Patel of the ETG led the delegation. Myanmar Country head of ETG Sanjay P Jain was present, among others, said an official handout.