Shipping lines refuse to carry jute charcoal for exports

Exporters are facing uncertainty over shipment of jute charcoal as shipping lines are refusing to carry the product following a fire incident at Chittagong Port, according to the stakeholders.  
About 500 to 600 tonnes of charcoal have remained stranded at the port over the past one month, forcing the exporters to count a possible financial loss of Tk 40 to Tk 50 million, according to exporters.
 "We have been passing our days with a great uncertainty over shipment of charcoal. We call upon the government to resolve the problem for the sake of the country's interest," Syed Manirul Islam, a leading exporter of charcoal told the FE.
"We seek government cooperation to gear up charcoal export," he said.
He said there are about 27 to 28 charcoal factories in the country. As there was no any shipment over the past one month, over thousand tonnes of charcoal are also piled up in the units.
Jute 'activated charcoal', a new export item made out of jute sticks, has the potential to help the country attain its export target of US$ 60 billion by 2021 if the sector gets necessary policy supports from the government, according to the sector insiders.
The charcoal is scientifically known as 'Jute Stick Charcoal Dust Powder', also commonly known as 'jute stick carbon'.
Bangladesh started producing 'activated charcoal' since 2012.
  The country exported jute stick carbon to China and earned over Tk 140 million during the fiscal year (FY) 2015-16.
Bangladesh enjoys duty-free market access to China.
The volume of 'activated charcoal' export could be doubled to access duty-free market facility offered by China.
The country produces over 3.0 million tonnes of jute sticks annually. Of these, if 50 per cent of jute sticks are properly used, then 2,50,000 tonnes of charcoal could be produced yearly, helping the country earn over Tk 20 billion through export, the insiders said.
There are about 3,000 factories in China which need a huge quantity of charcoal.  
A small factory requires at least 100 tonnes of charcoal for producing products monthly.  Charcoal costs between US $ 800 and $ 900 a tonne, according to the sector sources.
There is also a wide demand for charcoal in different countries. Bangladesh could also export the item to Japan, Turkey, the United States, Australia, Taiwan, Canada, Mexico and the Republic of Korea (ROK).
Products like face wash, dried ink of photocopier machine, water filtering, medicines to destroy poison and teeth cleaning are made by activated charcoal, according to the industry insiders.
At present, charcoal is produced in Jamalpur, Narayanganj, Rajshahi, Pabna, Rajbari and Faridpur districts.
About the method of charcoal production, entrepreneurs said they first burn dried jute sticks naturally. And after burning, ash/ carbon powder (charcoal) is produced containing over 86 per cent of carbon.
Considering the huge export opportunity, many foreigners have expressed their interest to invest in Bangladesh for producing more charcoal products.
Though the sector has a tremendous opportunity for such export, some bottlenecks in the sector still remain.
But local charcoal exporters suggested foreign investment in the sector only through joint venture in order to protect local entrepreneurs.
Meanwhile, to resolve the deadlock over shipment of charcoal, the ministry of textiles and jute (MoTJ) discussed the issue with the stakeholders on Thursday.
"We take the issue seriously. We hope the problem will be solved very soon. We must preserve our national interest," chairman of Bangladesh Jute Mills Corporation (BJMC) Dr Md Mahmudul Hassan told the FE.
"There will be an inter-ministerial meeting to address the shipment problems next week," a high official of the MoTJ told the FE.
talhabinhabib@yayoo.com