Monira Munni
Manufacturers of diversified jute products fail to enter the global market due to lack of government's policy support including international market information and technology, and shortage of raw materials.
They said due to the rising demands for eco-friendly and biodegradable products, the jute products have sustained their share in the global market and diversified goods will bring more value addition.
The industry can create employment for about 1.5 million people and earn Tk 5.0-7.0 billion within next three to five years because of the rising demands for such green products across the globe, they added.
But local entrepreneurs who can start their business with a little investment cannot advance their footprint both in local and international market as they face crises in getting raw materials, information on trend of the global market and due to lack of technology and training.
"Government should formulate a comprehensive policy for jute products manufacturers specially focusing on the diversified products," Rashedul Karim, managing director of Creation Private Ltd, told the FE Saturday.
"We should go for diversified products as they add more value than the traditional jute products", he said demanding special allocation for the sector in the upcoming budget.
Mr Karim who exports diversified jute products said jute millers get 10 per cent cash incentive while the diversified jute producers are yet to get such government support.
Explaining the raw material crisis, he said an Indian importer gets the raw jute at a cheaper rate while the local entrepreneurs have to pay higher than the foreign buyers.
Jute millers get 10 per cent incentive showing the export but when they sell the same raw materials to the local entrepreneurs they do not the get the incentive, he said putting a question, "How can the local entrepreneurs become competitive?"
Moreover, except some large factories, most of the local entrepreneurs are not aware of the global trend and market share, Mr Karim said adding they fail to enter the global market through upgrading their design, colour and technology.
Industry insiders said the concerned authorities like Export Promotion Bureau and Ministry of Commerce can play a vital role by making arrangements so that they can participate in international fairs where they can display locally made products and increase knowledge in technology and market trend.
Exporters believe Bangladesh has every chance to strengthen its foothold in the billion-dollar jute products market especially in the shopping bag market, if the government takes steps in this direction.
"We can easily double our production and exports, if we get necessary government support," an entrepreneur who exports jute bags and handicrafts said.
The country fetched $837.20 million during the first nine months of the current fiscal year, up from $571.50 million of the corresponding period in 2009-10 fiscal.
Local diversified jute goods unable to enter global market
Monira Munni | Published: April 17, 2011 00:00:00 | Updated: February 01, 2018 00:00:00
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