The local demand of raw jute has increased after making the use of jute sacks mandatory in packaging different agricultural products including rice, say the people related with the sector.
“We now need to produce an additional 1.5m bales of raw jute annually as mandatory jute packaging law pushed up demand,” said Mohammad Kefaetullah,a director of the Department of Jute.
Before the law came into effect, the jute mills under Bangladesh Jute Mills Corporation (BJMC) and private sector had an annual demand of about 4.5m bales of raw jute.
The country currently produces nearly 7m bales raw a year.
“We have so far been around 80% successful in implementing the law since November last year,” Kefaetullah said.
He said most of the rice millers were now using jute sacks in packaging rice and needed to be supplied with around 360m jute sacks a year.
BJMC officials see a return to the golden era of the golden fibre if the law could be implemented successfully.
The government in January 2014 enacted the Mandatory Jute Packaging Act 2010.
Under the law, all kinds of packaging, particularly for rice, wheat, sugar and fertiliser,must be done with the use of jute sacks.
For violation, the law provides punishment of maximum one year imprisonment or Tk50, 000 as fine, or both for using non-degradable synthetics to package commodities.
Despite initial unwillingness, most of the rice millers have now started using jute sacks after the launch of mobile court drive against non-compliance.
In December last year, the government imposed a temporary ban on raw jute export to tackle the rise of local demand.
The government plans to boost raw jute production from next season so the country can export raw jute again after meeting domestic demand.
“Steps have already been taken to increase raw jute production and resume export,” said Muhammad Kefayetulla.
The government has set a target to produce 8.5m bales of raw jute next year.
However, lack of fund has remained a problem in the sector. Although, the country has 22 jute mills, BJMC often cannot buy enough raw jute from farmers in time due to fund shortage.
The government has recently allocated Tk100 crore to procure raw jute from farmers.
“If proper implemenation of jute packaging law is ensured, jute mills will not need to close down in any part of the year. Then it will become a profitable sector again,” said BJMC Chairman Humayun Khaled.
He said around 66,000 workers in BJMC mills would not have to sit ilde without work then.
Besides, dependency on foreign market would also decline, BJMC chairman added.
New Hope of Export
European Union members and some other countries recently imposed restriction on the use of plastic and other synthetic-made products.
According to the UK-based Daily Mail Online, European MPs have voted in favour of strict new targets that forced each country to reduce plastic bag use by 80% before 2019.
“Bangladesh can take this chance increasing jute products supply to these countries, and raising its export volume,” said Quazi Shahabuddin, an economist.