What is the History of the Jute Industry in Bangladesh?
Jute has been woven into textiles since the 3rd century BC and has been a staple fabric in the Indian subcontinent, particularly in Bangladesh, West Bengal, and Assam. The first jute mill, established by British entrepreneur George Acland in 1855 at Rishra, West Bengal, marked the beginning of industrial jute production. Named The Acland Mill, this initiative was inspired by Acland’s observations of jute use in India.
The industry faced a severe decline in the 1970s with the rise of synthetic fibers. Initially, jute’s coarse texture meant it could only be woven by hand. However, the advent of machinery, facilitated by the use of whale oil, revolutionized jute production and helped the industry regain its footing in the textile sector.
In recent years, the increasing emphasis on sustainability has renewed interest in jute due to its eco-friendly and cost-effective qualities. This shift has revitalized jute’s role in the garment and textile industries, positioning it as a key export crop for Bangladesh once again.
The Historical Significance of Jute in Bangladesh
Jute, often called the golden fiber of Bangladesh, is one of the world’s most ancient and affordable fibers. Historically, it has been used to make rope, twine, fabric, and macramé hangers. During the Mughal era, specifically under Emperor Akbar (1542-1605), poorer rural populations in India wore garments made from coarse jute.
Challenges and Renewed Interest of the Jute Industry in Bangladesh
In 2002, the Bangladeshi government closed Adamjee Jute Mills, the country’s largest jute mill. Despite the shutdown, other jute mills struggled with profitability, increasing worries about the government. By 2006, the government owned 78 percent of the country’s jute mills, including 29 outright. To encourage the business, the government mandated in 2010 that wholesale makers and sellers use jute bags for packaging rice, sugar, wheat, and fertilizers, a requirement that was expanded to include animal feed in 2018.
In that same year, the Bangladesh Jute Mills Corporation (BJMC) suggested establishing a 100 billion taka Jute Sector Development Fund to provide low-interest loans and promote industry expansion. The jute sector exports over $1 billion in jute goods each year. To maintain sufficient supply for the home market, the government restricted raw jute exports in January 2018, but lifted the restriction in June 2019 in response to theBangladesh Jute Association‘s demands.
Between 2010 and 2019, the government invested around 7.5 billion takas in the BJMC. Despite these efforts, the firm has failed to make a profit, with yearly deficits continuing since 1980, except the 2010-11 fiscal year. The BJMC was described as a “bottomless pit” by The Daily Star in 2019 owing to its ongoing financial troubles.
However, the private sector in Bangladesh is exhibitingincreased interest in jute and jute products, owing to the rising demand for biodegradable and sustainable natural materials. Khiyoo Fashion House, for example, creates jute clothes and shoes. In contrast, Bangladeshi jute manufacturers have expressed worry over India’s application of anti-dumping taxes on jute products in 2017 and the increase of these levies in 2019. India is an important market for their products.
Jute’s Introduction to Global Trade
Jute first became a part of global commerce in the mid-18th century, a time when flax and hemp dominated the spinning industries in Europe and America. According to the National Encyclopedia of Bangladesh, the first jute mill was established in 1855 at Rishra on the river Hooghly, north of Kolkata, by George Auckland and his Bengali partner, Shyamsunder Sen.
The Rise and Decline of the Jute Industry
Under British rule, and for a quarter-century after 1947 in East Pakistan (now Bangladesh), the jute industry was Bengal’s largest. However, after Bangladesh gained independence, the industry’s contribution to the GDP and employment significantly declined.
Despite various efforts, most jute mills, apart from Adamjee, have consistently incurred losses. According toProthom Alo, in the past decade, government jute mills made a profit of 17 crore BDT, but the state treasury faced a substantial loss of 10,000 crore BDT due to these mills’ expenses.
Efforts to Revitalize the Jute Sector
In response to the industry’s decline, several initiatives have been launched to revive the sector. The Jute Diversification Promotion Centre (JDPC) was established in 2002, although its activities only began in earnest in 2013, aiming to diversify jute products.
Global demand for diversified jute products (DJP) is on the rise, with Bangladesh’s innovative jute-based products attracting international attention. Despite this, the country lacks the necessary infrastructure to fully capitalize on this market.
Innovations and Potential of Jute Products
Bangladeshi scientist Dr. Mubarak Ahmad Khan has suggested that converting Bangladesh’s total jute production into Sonali bags could reduce global polythene usage by one-third, offering a sustainable alternative to plastic pollution and potentially restoring the golden fiber’s former glory. Some of the innovative jute products include:
- Personal protective equipment
- Masks
- Sanitary napkins
- Jute polybags
- Shopping and garbage bags
- Thermal bags
- Rice sacks
- Grocery and packaging bags
Dr. Khan believes that jute has the potential to transform Bangladesh’s economy, provided that the country effectively brands its sustainable jute products to attract global interest.
Challenges Facing the Jute Industry
The jute sector faces several challenges that need to be addressed to reach its full potential: outdated technology, a lack of skilled manpower, insufficient fiscal support, and inadequate research-based product diversification. These issues hinder the production of quality jute yarn, which is crucial for meeting market demands and maintaining competitive advantage
Proper research and development are essential, requiring sophisticated jute research institute labs and equipment, as well as university departments dedicated to jute education.
Conclusion
High-tech jute goods have significant global demand, but most Bangladeshi jute mills use 50-year-old machinery and lack essential facilities for dyeing and lamination. Without addressing these issues, the potential of jute will remain untapped.
Goldesia Jute Mills Limited, a leading jute yarn manufacturer in South Asia, showcases the potential for innovation within the sector. Despite their advancements, broader industry support is needed. With the right focus and government support, jute could transform Bangladesh’s economy and promote global sustainability. Without it, this natural blessing may be squandered.
Frequently Asked Questions (FAQs)
What is the problem faced by the jute industry?
Outdated machinery reduces the productivity and competitiveness of Indian jute mills, while rising labor, energy, and raw material costs drive up production expenses.
What is the economic importance of jute in Bangladesh?
Jute is a key sector in Bangladesh, contributing4.9%of export earnings and employing 243,000 workers in 26 state-owned mills, with women making up 18% of the workforce.
Which district in Bangladesh produces the most jute?
Most jute is grown in Kurigram. This year, Rangpur region produced125,000 tonnes, while nationwide cultivation covered 764,000 hectares, yielding an estimated 1,830,000 tonnes.
Why is jute called golden fabric?
Known as the golden fiber for its color, jute is a profitable cash crop. It’s the second most important natural fiber after cotton, with rising demand in India and globally.