Prospect for Bangladesh jute brightens
Sunday, 22 May 2011
Arafat Ara
A move by the United Arab Emirates (UAE) authorities to ban uses of plastic shopping bags by 2013 has brightened the prospect for Bangladesh's jute industry to export around 9.0 billion jute bags to the UAE market, the industry insiders said. "This (the UAE's move) will be a great opportunity for Bangladeshi jute exporters. They should be well-prepared for availing themselves of such a unique opportunity," said Bangladesh Jute Mills Corporation (BJMC) Marketing Director Shamsul Haque. The UAE authorities will impose the embargo on plastic shopping bags as such bags severely pollute the environment. This will prompt import of a large quantity of eco-friendly bags by the UAE from the overseas to meet the ever-increasing demand for such items. He said a large amount of money can be earned through export of jute shopping bags to the UAE market. "New investors should be strongly encouraged as a large amount of investment is needed to grab the market," Mr Haque said. The BJMC official said they can supply jute fabric but it does not have the capacity to produce more products, in line with the market demand. "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," he added. But the exporters said Bangladesh has no proper preparation to tap the market as there are no adequate infrastructures and high technology to produce the items in accordance with the global demand. Bangladesh Jute Mills Association Secretary Abdul Barik Khan said the export volume of jute shopping bags is not significant as only some small and medium industries are now producing the item. He, however, sought facilities like soft loans and government's subsidy for hi-tech machinery to ensure more investments in the industry that would definitely drive Bangladesh to attain a dominant position in the emerging global market. "Presently the global jute market is dominated by India that provides 30 per cent subsidy to exporters for import of upgraded machinery," he said. Creation Private Limited Managing Director M Rashedul Karim Munna, who is a major shopping bags exporter of the country, said they are getting nearly 20 to 25 queries a month from the buyers for jute shopping bags but they are unable to accept the orders due to shortage of quality jute fabrics and their high prices. He said due to shortage of quality fabrics and uncompetitive prices, most of the buyers are shifting to India from Bangladesh. "The country exports around 3.0 million pieces of jute shopping bags to different countries where India exports more than 50 million pieces a year," said the exporter. He said the government should formulate a jute diversification policy to seize the opportunities and to help the sector flourish. "If the sector gets proper support, its export earning will stand at between Tk 5.0 billion and Tk 10.00 billion within the next three or four years," said Mr Karim.
A move by the United Arab Emirates (UAE) authorities to ban uses of plastic shopping bags by 2013 has brightened the prospect for Bangladesh's jute industry to export around 9.0 billion jute bags to the UAE market, the industry insiders said. "This (the UAE's move) will be a great opportunity for Bangladeshi jute exporters. They should be well-prepared for availing themselves of such a unique opportunity," said Bangladesh Jute Mills Corporation (BJMC) Marketing Director Shamsul Haque. The UAE authorities will impose the embargo on plastic shopping bags as such bags severely pollute the environment. This will prompt import of a large quantity of eco-friendly bags by the UAE from the overseas to meet the ever-increasing demand for such items. He said a large amount of money can be earned through export of jute shopping bags to the UAE market. "New investors should be strongly encouraged as a large amount of investment is needed to grab the market," Mr Haque said. The BJMC official said they can supply jute fabric but it does not have the capacity to produce more products, in line with the market demand. "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," he added. But the exporters said Bangladesh has no proper preparation to tap the market as there are no adequate infrastructures and high technology to produce the items in accordance with the global demand. Bangladesh Jute Mills Association Secretary Abdul Barik Khan said the export volume of jute shopping bags is not significant as only some small and medium industries are now producing the item. He, however, sought facilities like soft loans and government's subsidy for hi-tech machinery to ensure more investments in the industry that would definitely drive Bangladesh to attain a dominant position in the emerging global market. "Presently the global jute market is dominated by India that provides 30 per cent subsidy to exporters for import of upgraded machinery," he said. Creation Private Limited Managing Director M Rashedul Karim Munna, who is a major shopping bags exporter of the country, said they are getting nearly 20 to 25 queries a month from the buyers for jute shopping bags but they are unable to accept the orders due to shortage of quality jute fabrics and their high prices. He said due to shortage of quality fabrics and uncompetitive prices, most of the buyers are shifting to India from Bangladesh. "The country exports around 3.0 million pieces of jute shopping bags to different countries where India exports more than 50 million pieces a year," said the exporter. He said the government should formulate a jute diversification policy to seize the opportunities and to help the sector flourish. "If the sector gets proper support, its export earning will stand at between Tk 5.0 billion and Tk 10.00 billion within the next three or four years," said Mr Karim.