Can lost glory of jute be revived?

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Shahiduzzaman Khan
The government is considering launching of Tk 10 billion worth of bonds for the revival of the country's jute industry. The possibility of reopening of the decommissioned jute mills is also being explored. Being concerned at the ailing condition of the jute industry, the Adviser in-charge of the Ministry of Local Government and Rural Development, (LGRD) Anwarul Iqbal, said the government has taken up steps to disburse loans among the farmers, aiming to help boost local raw jute production.
For the first time, according to a report published in the FE this week, credits will be made easily available for the jute growers through the Bangladesh Rural Development Board (BRDB). Each of the farmers will get Tk 9,000 as loan for cultivating jute on a hectare of land. Initially, farmers in 115 major jute-growing upazilas across the country will come under the small credit scheme.
The most disturbing piece of news is that the overall production of the jute mills in Khulna belt has declined by around 60 per cent following the recent labour unrest there. The jute adviser is scheduled to hold a meeting with the leaders of jute workers and senior officials of jute mills at the Khulna Circuit House this week to resolve labour-related problems. According to sources, workers of most of the jute mills under Khulna zone have been agitating to realise various demands, including payment of wages and benefits.
The government has already shut down some of the Bangladesh Jute Mills Corporation (BJMC)-run public sector jute mills in Khulna area following years of operating losses. The existing jute mills are also facing serious financial crisis. Although the number of jute mills under the BJMC has declined to only 18 over the decades, most of them are facing closure. Currently, all the BJMC mills produce about 115,000 tonnes of jute goods per annum. The country's total annual production is nearly 550,000 tonnes.
The accumulated losses of the BJMC mills reached Tk 47.70 billion at the end of last year. How long can the nation sustain colossal losses on account of its failing jute sector? In the backdrop of such persistent losses by the mills in both public and private sectors, the government should go for diversified uses of jute, instead of making only traditional Hessian and jute bags, which have little demand in the overseas markets. The government may help promote the setting up of new jute-based industries in order to diversify the use of jute and create multiple benefits for the economy.
The age-old jute mills particularly in the public sector are riddled with multifarious problems, entailing a huge drag on the national exchequer and the large public sector banks. Such a situation may completely change if new industries are set up to use jute unconventionally to produce goods having sustained demand in the international market.
What is more exciting is that the bio-pulping process seems more suited to jute than other raw materials for pulp or paper making. Such a situation has unfolded wide opportunities for Bangladesh to make quality pulp and paper out of jute plants and at relatively cheaper costs using the bio pulping technology. A fast expanding pulp and paper market at home and abroad together with the price competitiveness will make the future of jute brighter.
Jute products could also provide useful alternatives in automobile industries if there is a ban on use of artificial materials. Typically, an automobile needs artificial fibre-made products for its parts in 37 places. All the 37 parts would be in a position to use jute once the artificial fibres are banned. A demand for these jute-based products for the automobile industry can be created internationally.
The flawed policy of non-cooperation by successive past governments was blamed for the dismal condition of the jute sector. In order to have a balanced jute policy the existing public sector mills may be privatised or leased out. This may help cut the loss of the government. There is no chance of improving the operational efficiency of public sector mills. The government can adopt a uniform policy if all the jute mills are in the private sector.
A comparison of the country's jute exports with India's reveals that Bangladesh exported 1.4 million tonnes of jute goods in 1990, while India's share was only six tonnes, against 3.0 million tonnes of global demand. But the situation has been totally reversed now. The global demand for jute and jute goods has risen to 6.0 million tonnes, and India has captured the major markets. Indeed, Bangladesh has failed to cope with the growing demand for jute goods in the world market.
Bangladesh's jute industry, the biggest producer and exporter of jute goods in the global market, is now regarded as a 'sunset industry'. Ironically, the jute sector in India has flourished tremendously over the past few years, while it has declined alarmingly in Bangladesh. In reality, country's jute sector is now at its last gasp, and it is all because of wrong policies, mismanagement, and rampant corruption.
All said and done, possibilities are still there to bring back the lost glory of the golden fibre. All the country needs is the right policy, and its proper enforcement. Substantial rethinking by the caretaker government is the need of the hour for rejuvenation of the jute sector.