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Duty wall, indirect foreign buy impede growth

Jute industry up for grabs by investors

BD jute goes to Europe thru re-export


FE REPORT | December 16, 2023 00:00:00


Jute returns as environmental-friendly product while the world plans multibillion-dollar bets for green growth but Bangladesh's famous fibre faces anti-dumping duty and indirect foreign purchase as barriers to potential business.

Speakers from home and abroad at a discussion Friday in Dhaka said the sector's growth remained stunted despite rising demand for jute and jute goods in the global market, because of such barriers.

Citing example, they said some European countries are now importing jute products from Turkey instead of direct procurement from Bangladesh.

Turkey imports jute from Bangladesh, they mentioned as regards the re-export of the product.

The jute-sector prospects and means of revival came in focus at a discussion on 'Projecting Jute as the Fibre of the Future: Challenges and Potential', organised by the foreign ministry in Dhaka.

Government plan for divesting itself of holdings in the jute industry and offering private investors full stakes for seizing market figured high.

Speaking as chief guest at the meet, State Minister for Foreign Affairs M Shahriar Alam said long-accumulated legacy of inefficiencies and losses made the task difficult, but it appears that the jute sector is again poised for a qualitative shift in an increasingly favourable global and local environment.

"In the last fifteen years, our government has supported the work on decoding the genome sequence of jute as well as a fungus that affects jute production," he told the function.

Mr Shahriar said following several attempts at reopening the ailing jute mills, the government finally decided to lease out a number of jute factories to private operators, with partial success so far.

"It is critical that the private managements that have taken over the jute mills do operate them as per the stipulated terms and conditions."

He said the government made it convenient for them by offering a substantive severance package to the previous batch of workers along with arrangements for sustainable savings.

"In parallel, efforts are being made to encourage diversification of jute products with a view to catering to the evolving needs in the international market."

He mentions a nationwide growth of cottage, small and medium industries working on jute design and products, with an overwhelmingly large presence of women. Some big names in the country's industrial sector are also expanding their investment portfolio in jute.

Those interested in the jute sector may consider investing in backward linkage by taking over some of the existing state-owned jute mills still lying inoperative, he said about government offer.

"It is an express intention of the government to move away from jute business and act more in a supportive and enabling role across the jute value chain."

To this effect, agricultural scientists are working on developing further jute varieties towards enhancing the volume, strengths and quality of the fabrics.

He stressed finding pragmatic solutions to some of the persistent challenges like procuring and supplying jute seeds in a timely and cost-effective manner.

The foreign ministry hopes that growing demand for jute in the international market would drive suitable adjustments to Bangladesh's trade and revenue policies in order to help boost innovations and exports.

Stakeholders have been urged to to capitalise on the aggressive push for sustainability and circularity in the global supply chain to enable jute to find its rightful name recognition and place.

Bangladesh finds it alarming that millions of tonnes of non-degradable materials entering soil and water, severely affecting planetary health and ecosystem.

In contrast, jute and other natural fibres can hold solutions to some such effects provided sufficient resources and expertise are mobilised to develop and promote innovative solutions around them.

"We now know that diverse solutions like high-value activated charcoal to high-tech applications like geo-textiles can be derived from jute, and it falls on us to further disseminate this information," the state minister said.

Dhaka calls upon all to seize the opportunity to project jute as the 'fibre of the future' as part of the green-growth strategy the world is pursuing.

Bangladesh has taken initiative to get a Resolution on the use of jute and other natural fibres adopted by the UN General Assembly every two years.

"From the Ministry of Foreign Affairs, we stand ready to work together with all concerned stakeholders to run a strategic campaign on jute in the spirit of the UNGA Resolution," he said, hoping that jute would be featured as a core element of 'Branding Bangladesh' in the broader context of sustainable development, fair trade, and climate action.

Dhaka recommends promoting jute as an eco-friendly alternative to non-degradable materials as part of shared commitment to a nature-positive world.

The country also urges the stakeholders to support free and fair trade in jute and jute products as a way to support jute cultivators and entrepreneurs, who are real custodians of this unique natural resource.

Efficient product design and development, including for extracting and processing raw jute, are stressed for improving quality and preventing wastage or pollution.

Among others, pro-VC of BUET Abdul Jabbar Khan, Faruq Hasan, President of BGMEA, Secretary, Garments and Jute Ministry, Md.Abdur Rouf, Tapan Kanti Ghosh, Sen Secretary, Charles Whitely, EU Ambassador in Dhaka, spoke at the meet.

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