• Friday, Oct 02, 2020
  • Last Update : 11:51 pm

Jute makes turnaround: Golden fibre emerges as 2nd largest export earner

  • Published at 08:10 pm July 6th, 2020
File-photo-of-a-jute-mill-Syed-Zakir-Hossain
Syed Zakir Hosain/Dhaka Tribune

In the just concluded fiscal year 2019-20, Bangladesh merchandise exports declined by 16.93% to $33.67 billion

While major export items are struggling to survive the economic hit of the new virus, jute and jute goods are the exception as it posted an 8.10% rise to $882.35 million in FY20.

In the just concluded fiscal year 2019-20, Bangladesh merchandise exports declined by 16.93% to $33.67 billion, according to the data of the Export Promotion Bureau (EPB).

Of the total amount, raw jute earned $130 million, up 15.48% from last year’s export receipts. Jute yarn and twine, the largest contributor to the sector, fetched $564.26 million, posting a 10.12% growth compared to the previous fiscal year.

On the other hand, jute sack and bags saw a 28.58% surge to $106.54 million in the just concluded fiscal year.

Since the export earnings from leather and leather goods this time registered a 21.79% fall to $798 million, the jute and jute goods sector has emerged as the second largest export earner after the RMG sector.  

 Talking on the performance of jute and jute goods export, sector people attributed the rise to the enhanced global demands, better prices, and upgradation of machinery by the private sector.

“With the growing pressures from the environmentalists on the impact of global warming, demands for green products keep rising gradually in the US and other European Union markets,” Md Rashedul Karim Munna, managing director of Creation Private Limited, a jute goods manufacturer, told Dhaka Tribune.

On the other hand, local manufacturers adapted upgraded technology to meet the requirement of buyers, which helped exporting more environment-friendly jute goods, said Munna.     

Besides, diversified jute goods are another window, which earned better prices as people are increasingly using these goods to decorate their homes, he maintained.

Private sector welcomes government decision 

On Thursday, the government decided to shut its 25 state-owned jute mills under the Bangladesh Jute Mills Corporation (BJMC).

Private sector people have welcomed the government decision.

“The global demand for jute and jute goods are better than it was in the past. The prices are also better than those of previous times. Despite the crisis period due to Covid-19, exports from the sector fared much better,” Md. Zahid Miah, Director of Jobaida Karim Jute Mills said.

 “We welcome the government decision of shutting down the mills as the government has plans to make the mills vibrant through the private public partnership(PPP) initiative,” said Zahid. 

 “Amid the coronavirus crisis, the rise in export earnings from the jute and jute goods is an exceptionally bright prospect. Private sector has played an important role to this end,” Centre for Policy Dialogue (CPD) Research Director Khondaker Golam Moiazzem said.

Since the government has decided to shut its mills, the jute sector will survive with dominance in the global export markets through private sector people, hoped the economist.

66
65
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail