Jute and Jute Goods Sector

Jute and Jute Goods are eco-friendly product and its demand across the globe is constantly growing considering its environmentally friendly nature. The consumer of the developed economy is using diversified jute and Jute goods in their daily life. Bangladesh as a major producing country of jute has huge scope and potentiality to grab the untapped market of the world.

In terms of export value, the jute and Jute sector has occupied the third position followed by apparel and agricultural products. Although Jute cultivation in Bangladesh dates back to prehistoric era, its industrial processing here is a recent development that only started with establishment of Bawa Jute Mills at the outskirt of Dhaka in 1952.By 1970, the nascent jute industry grew at a rapid pace capitalizing the global reputation of the ‘golden fibre’ and became number one source of foreign exchange for the then Pakistan. After emergence of Bangladesh as an independent country in 1971, the government nationalized all 78 jute mills in operation that time and created Bangladesh Jute Mills Corporation (BJMC) to own, operate and manage those. BJMC not only did uphold globally reputed legacy of ‘golden fibre’, but also expanded the area of activity through establishment of few new mills to explore jute diversified products (JDP) raising total number of mills to 83. As a result, jute continued to be the new-born country’s industrial backbone and largest source of exchange earning until mid-1980s.

Since the late-1980s, the jute industry lost pre-eminence to the fast-growing RMG industry but remains a significant economic sector offering livelihood for more than 30 million people. During the recently concluded fiscal 2020-2021, jute and jute products earned USD 1,161.48 million in exports.

Main Exportable Jute Products

Until the late 1980s, jute and jute goods together remained main source of export earnings of Bangladesh. With the emergence of fast-growing ready-made garments sector during the late-1980s and sudden rise of polythene and plastic products along the same time, jute gradually lost its preeminence over time. However, in recent years, a surge in global demand for jute products, especially ‘jute diversified products’ (JDP), led to resurgence of its past glory.

Currently Bangladesh is producing wide range of jute products including 282 JDPs. Notable categories of JDPs include home textiles, household furniture/decoration, gardening items, paper/packaging products, office stationery, floor cover/mat, bags, jute geo-textile, fashion accessories and shoe products. Brief description of main types is:

Jute based items for decorating wall: Jute goods are widely used for fashion and aesthetic purposes. Especially for wall decoration, different items of jute are being used such as; embroidered paintings, framed products, framed photographs, tapestries, framed mirrors, wall decals, wall hangings, hacking pockets storage, key holders, etc.

Jute bags: Handbags, shopping bags, beach bags, Christmas bags, sling bags, sacking bags, bottle bags, hessian cloth bags, hydrocarbon free bags, food grade bags, etc.

Jute craftworks: Sketchbook, pen keeper, cards of salutation, picture frame, folders for containing document, gift container, tissue box, wall hangings, slip pad holder, jute coasters, table mats, jute hammocks, lampshades, stationery.

Jute textile: Hessian cloth or burlap, geotextiles, yarn, carpet backing cloth (CBC), hydrocarbon free cloth, canvas.

Jute apparel: Jacket, footwear, fashion accessories.

Jute furnishings: Mats and durries, cushion covers, fabrics, blinds, rugs, carpets

Main Export Market

Turkey is the largest importer country of jute and Jute Goods with USD 331.93 million. Have a look at top 10 importer counties of jute bags.

Export Performance During 2015-16 to 2019-20

(Value In Mn. US$)
Products 2016-17 2017-18 2018-19 2019-20 2020-21
(16) Jute & Jute goods (Chapter 53, 6305) 962.42 1025.55 816.27 882.35 1161.48
a. Raw Jute (5303) 167.84 155.68 112.48 129.89 138.15
b. Jute Yarn & Twine (5307) 607.88 647.72 512.42 564.26 799.04
c. Jute Sacks & Bags (630510) 127.53 122.82 82.86 106.54 138.66
d. Others 59.17 99.33 108.51 81.66 85.63

Export Performance of different Jute items :

Sacks and bags, used for packing goods

Country 2020-21 (Value In Mn. US$) Share (%)
SD: Sudan 42.66 19.34
NL: Netherlands 28.73 13.02
IN: INDIA 18.39 8.34
FR: France 16.04 7.27
DE: Germany 8.85 4.01
AE: United Arab Emirates 8.76 3.97
BE: Belgium 7.31 3.31
ID: Indonesia 7.09 3.21
US: United States 6.99 3.17
GB: Great Britain 6.94 3.15
KE: Kenya 6.62 3.00

5310: Woven fabrics of jute or of other textile bast fiber

Country 2020-21 (Value In Mn. US$) Share (%)
IN: INDIA 29.89 36.26
US: United States 9.60 32.13
CN: China 9.21 95.96
AE: United Arab Emirates 7.48 81.17
NL: Netherlands 5.24 70.00
KR: Korean Republic of 4.16 79.45
AU: Australia 3.35 80.58
DE: Germany 3.31 98.66
GB: Great Britain 1.44 43.62
NZ: New Zealand 1.37 94.63

Top Importers of Jute and Jute Goods

Country 2020-21 (Value In Mn. US$)
TR: Turkey 331.93
CN: China 144.89
IN: INDIA 112.03
PK: Pakistan 53.67
AE: United Arab Emirates 43.52
EG: Egypt 42.80
UZ: Uzbekistan 22.64
RU: Russia 21.97
US: United States 21.37
ID: Indonesia 20.73
CI: Cote d`lvoire 19.65
IR: Iran (Islamic Republic of) 18.15
JO: Jordan 13.29
BE: Belgium 12.66
BR: Brazil 11.21
KR: Korean Republic of 9.68
Others 122.63
Totla 1022.82

Top Importer Countries of Jute Fabrics

Germany is the top jute fabrics importer country in the world, shared 14.9% value to total imports. Look at the chart and table below to know top 10 jute fabrics countries in the world.

Women Empowerment

According to a study by the Bangladesh Women Chamber of Commerce and Industry (BWCCI), 69.4 per cent of women entrepreneurs are involved in the handicraft sector. While women are mainly responsible for a raft of household chores, the cottage-based craft industry offers and empowers them to work from home and earn an additional income. Gradually, the craft sector is also contributing to creation of new employment opportunities for women outside the household. The craft industry thus offers a real way out of poverty for many poor women.

Tapping into the potential of the craft sector for women’s economic empowerment, Katalysts, an initiative of Swisscontact , a foundation for technical cooperation , identified that by providing independent craft producers and poor women artisans with better access to skills development, knowledge of effective production technology and market linkages, they can increase their income further and lift themselves out of poverty. This has resulted in an innovative collaboration between Catalyst and BRAC-Aarong, Bangladesh’s largest craft retailer. The goal of this joint initiative is to develop a comprehensive in-house training program which increases the capacity and skills of Aarong’s independent producers (male and female) and their artisans (who are all women). These producers are small entrepreneurs who employ artisans to produce a variety of crafts. It is essential that Aarong develops the capacity of its independent producers and their artisans in order to ensure a sustainable growth of its business. The training program for independent producers and artisans thus creates a win-win situation: on the one hand, independent producers and poor women artisans will be able to enhance their skills, improve their competitiveness, and ultimately increase their income. At the same time, the initiative will help Aarong to ensure a steady supply of high quality products for its growing customer base.

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