Diversification boosts overseas sale of jute, jute products

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Monira Munni
Overseas sales of jute goods and raw jute rose steeply marking a strong return to its past glory due to product diversification and mounting pressure for using degradable and eco-friendly products in many parts of the world.
Shipment of jute goods and raw jute witnessed a sudden rise when earnings from many other export items slipped to a marked extent because of the late impact of global recession.
Exporters said timely product diversification has helped jute reclaim some of its lost glory.
"Jute goods accounted for 68 per cent of the country's total jute exports in the current fiscal year. And the main reason behind it was product diversification," they added.
They said the global demand for raw jute and jute goods has increased mainly because people are choosing more and more products made of environment-friendly natural fibres to minimise the affect of climate change since World Health Organisation (WHO) declared the year of 2009 as the Natural Fibre Year.
The golden fibre hit the jackpot this year, with the export of raw jute growing more than 46 per cent in the first eight months of the fiscal to US$156.26 million and jute goods 53 per cent to $270.68 million.
The country's export earnings totalled $177.42 million from jute goods and $87.83 million from raw jute during the same period of last fiscal.
"We have never witnessed such a fabulous growth in jute exports for decades," Sheikh Faruk Hossain, chairman of Bangladesh Jute Association (BJA), told the FE.
"Consumers-both individual and industrial - are ditching chemical fibres for natural ones such as jute for specific purpose. They are now more conscious about the harmful effect of chemical fibres," he said.
Bangladesh exports raw jute mainly to India and jute goods to Turkey, Belgium, Iran, Spain, Syria, Uzbekistan, China, India and Pakistan.
The country now exports jute products to around 30 countries, including Canada, Japan, European Union (EU) and the United States.
Carpet yarns and jute sackings are the top selling products, now witnessing a great demand in East Europe, Middle East, and central Asian countries.
Mr Hossain said in the last three years, the number of jute mills had grown from 60 to 65. "There is also a significant growth in capacity among the existing players," he added.
The government needs to come forward with appropriate guidelines to sustain the present trend foreseeing the bright prospect of future "Diamond Fibre".
"Even the jute fibre is used in cars like Sedan," he said explaining its future demand, he said.