The importance of the jute sector to the Bangladesh economy, in particular, cannot be

over-stated, it is a major cash crop for over three million small farm households, the
largest industry, producing about one- third of manufacturing output, and the largest
agricultural export commodity in Bangladesh. The livelihood of about 25 million people
(almost one - fifth of the total population) is dependent on jute - related activities in
agriculture, domestic marketing, manufacturing and trade

Rejuvenation of Jute Industry

The government of Bangladesh is trying to rejuvenate the jute industry by injecting Tk 4
billion in the current financial year (FY) as loan to jute exporters. Each of four stateowned banks will allocate Tk 1 billion under the auspices of the Banking Division of the
Ministry of Finance. According to the present government policy, Government want to
keep the mills in operation instead of closing down on the plea of losses and therefore,
the Government in the meanwhile opened the Peoples Jute Mills Ltd., Khalishpur Jute
Mills Ltd. and the Qawmi Jute Mills Ltd. and put them into operation. Moreover, in order
to minimize the production losses, several effective measures have been taken up for
implementation, such as, the machinery of closed Adamjee Jute Mills are being used by
transferring them to the other selected jute mills, proper maintenance of the machinery
and training of the workers which will help enhance the productivity and quality of
products
Jute Export: (in USD million)
Bangladesh is getting back to the golden era in recent year as demand for jute and jute
made product is increasing as it is considered as bio-degradable product. As Bangladesh
has favorable climate to produce jute therefore, Bangladesh currently exporting 70% of
total raw jute. There is increasing growth has observed in 2010-11 and 2001-12 year
but in 2012-13 export of jute decreased.
2012-13
Amount
211

%
1.1

2011-12
Amount
236

%
2.36

2010-11
Amount
186

%
1.1

Export price of Raw Jute

Average Raw Jute Price
(USD/Tone)
1000
500

Bangladesh is the largest exporter of raw jute.

Therefore the local price of raw jute in
Bangladesh is deemed the international price.
The export price of raw jute in Bangladesh was in
increasing trend during 2008-2010 but the prices
declined during 2011-2012. Because local traders
and industries are fail to procure jute due to fund
crisis, which pulled down jute price.

0
2008 2009 2010 2011 2012
Source: IJSG, Jute Matters VOL-1, Issue-5 April -2013
Table: Average export price of raw jute of Bangladesh

Total Area of Jute production

Total area under jute crop has been estimated at 16, 82,903 acres (6, 81,034 hectares)
which is 10.40% lower than that of last year. Comparative
2011-12
2012-13
area estimates of jute crop of 2011-12 and 2012-13 are as
Area (
Area (In
follows
In Acre)
Acre)
1878256

1682903

Source: Bangladesh Bureau of Statistics

Table-3: Total Area of Jute Crop

Yield Rate of Jute

Average yield rate has been estimated at 4.52 bales per acre (11.175 bales per hectare)
compared to 4.53 bales per acre (11.204 bales per
2011-12
2012-13
hectare) in the last year, which is 0.26% lower. Average
Yield Rate
Yield Rate Per
yield rate of this year as well as the last year are
Per Acre
Acre (bales)
(Bales)
computed as follows;
4.53

4.53

Source: Bangladesh Bureau of Statistics

Table-4: Yield Rate of Jute Crop

Total Jute Production

Total jute production in this year has been estimated at 76, 10,585 bales which are
4.90% lower than that of last year. Total production figures of this year and the last year
are as follows;
2011-12
Bales
8003023

2012-13
Bales
7610585

Source: Bangladesh Bureau of Statistic

Table-5: Total Production of Jute Crop

Number of Jute Mills

At present there is increasing private investment along with public investment in jute
industry. Jute mills in Bangladesh is controlled by three Association which are

BJMC( Bangladesh Jute Mills corporation)

BJMA(Bangladesh Jute Mills Association)
BJSA(Bangladesh Jute Spinners Association)

Bangladesh Jute Mills Corporation (BJMC): BJMC established in 1972 to manage,

supervise and control all abandoned private jute mills. The number of jute mills under its
supervision was 82. But from the year 1977 to 1985-86 number of jute mills started to
decline and turn into 27 mills. 50 mills of 82 were privatized, 2 mills were declared scrap
and 2 mills were handed over to the privatization commission.
Bangladesh Jute Mills Association (BJMA): There are 124 mills are controlled by BJMA

which is the private mills owners association. Among 124 mills 38 of these are privatized
from public company and 86 new mills are established. BJMA has 67 composite mills, 4
carpet producing mills and rest of the 15 mills are producing unconventional jute
products. Among 38 mills which are privatized, 12 mills are on operation, 15 mills are
partially in operation and 11 mills are not in operation. 7 of newly established 86 mills
are out of operation.
Bangladesh Jute Spinners Association (BJSA): Bangladesh has 92 jute spinning mills

which has production capacity of 825000(MT). Currently Number of total spindles are
217792. There are 65000 employees are working.

Production of Jute product

Hessian
(IN)*

Sacking
(BD)

Sacking
(IN)

Carpet
Backing
(BD)

Carpet
Backin
g (IN)

57.59

210

275.82

1218.2

10.81

2.9

51.57

239.9

269.02

1165.1

10.81

3.6

451.41

45.24

244.4

196.21

1076.9

16.79

4.7

2009-10

425.56

40.86

206.5

202.53

921.6

15.99

2.4

2008-09

330.84

37.83

297.5

198.02

1071.4

13.39

4.5

Yarn
(BD)

Hessian
(BD)*

2012-13

618.58

2011-12

537.37

2010-11

Year

*BD (Bangladesh)*IN (India) Source-IJSG Table-4 Production of jute product of Bangladesh & India

Bangladesh is produces Jute yarn and maintaining increasing trend. On the other hand India does
not produce yarn. In case of producing hessian Bangladesh is performing well from year to year
but India is maintaining a absolutely.

Jute Production Comparison

India has taken advantage of recent improvements in the cultivation of jute to become
the largest producer or cultivator of jute in the world. Using advanced production
techniques, India also has dominance over the worldwide jute products market. Due to
national law to use jute as packaging materials, India is the largest producer and
consumer of jute in the world.
Bangladesh is currently the second largest producer of jute fiber, now overtaken by
India. The Jat Area, popular for best quality of jute fiber is located in
Nepal
Uzbekistan
2010
China

2011

Bangladesh

2012

India
0

500000 1000000 1500000 2000000 2500000

Source: NJB, Ministry of Textile, Government of India.

Table: Production Comparison

Bangladesh. Therefore, Bangladesh is able to supply the best quality jute fiber in the
world. However, Bangladesh falls behind other competitors in applying recent
technological advancements. In terms of world export of jute fiber, Bangladesh's share is
more than 70%, which makes Bangladesh the largest exporter of jute fiber in the world.
China is the third largest in terms of jute cultivation. Due to China's huge population, the
Chinese are not emphasizing the cultivation of jute, as it competes with other staple
crops. Due to modern effective agriculture, they have the highest yield of jute fiber in
the world.
Future Import Destination:
Jute is one of the most affordable natural fibers and is second only to cotton in amount
produced and variety of uses of vegetable fibers. As an environment friendly and 100%
bio-degradable fiber, world production of jute as well as consumption and trade of jute
and jute products are also increasing. Many countries in the world have started to prefer
jute products as jute is sustainable product compare to plastic and bio-polythene.
Therefore, market for jute and jute products are changing year by year.
Promising jute products for import
Different types of jute products are being traded around the world. Twine, woven fabrics,
sacks and bags is decreasing trend in global import 1; whereas yarn and carpet showed
increasing pattern. So, it can be concluded that yarn, carpet and different floor coverings
will be imported significantly by different countries in the coming years.

Jute Matters, A Monthly publication by IJSG (International Jute Research Group), Vol-1, Issue-11 October2013.