Export prospect of jute bags brightens

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Monira Munni Export prospect of locally manufactured jute bags has brightened as many buyers from Thailand started sourcing the natural fibre-made item from Bangladesh, officials said. They said members from the Thai rice association have made agreement with the state-owned Bangladesh Jute Mills Corporation (BJMC) for importing 3.0 million pieces of jute bags. BJMC has got export order of 3.0 million pieces of jute bags from Thailand thanks to the rising demand for the natural fibre, they said. Thailand is a big rice growing country in the world with about 300 rice mills there and its government has recently announced steps to remove poly or plastic materials considering their negative impact on the environment, they said. BJMC got export order for supplying 150 containers for 3.0 million pieces of jute made bags worth Tk 200 million, Marketing Director of BJMC Shamsul Haque told the FE. The Corporation has already shipped 10 containers which are on way to Thailand, he said. Thailand needs abut 200 million pieces of jute bags for its 300 rice mills, he said adding "Bangladesh has big potentiality of exporting jute bags there." "It is the beginning that we have already started entering into the market," Mr Haque said. But exporters said they failed to grab the untapped potential market due to lack of government's policy support. "What we need is to make the buyers familiar with our products," Executive Director of Bangladesh Jute Diversification Centre Osman Goni Chowdhury said. Thailand mainly imports jute bags from India at a competitive rate, he said adding India gets preferential benefit as it provides tax at 8.0 per cent due to its free trade agreement with Thailand while Bangladeshi exporters have to pay 10 per cent tax. "But we have no such free trade agreement with Thailand," he added. Moreover, the Bangladesh embassy in Thailand is yet to take any step to boost export there, he alleged. Exporters are trying to enter into the market from individual level, Mr Chowdhury, who manufactures value-added jute goods, said, demanding government-level initiative to grab the market. The global market of jute-made bags will be worth 500 billion pieces, equivalent to seven million tonnes of jute products, in the coming days as actions are on to remove poly or plastic materials from all over the globe, considering their negative impact on the environment, exporters said.