Govt eyes higher jute earnings through value-added products

Commerce, Industries, Textiles and Jute Minister Khandakar Abdul Muktadir said the government is working to convert as much raw jute as possible into high-value products to boost foreign exchange earnings and revenue.
The government is also promoting promising sectors beyond readymade garments (RMG), including silk, handloom and diversified jute products, he said.
Muktadir made the remarks while inaugurating a six-day “Multipurpose Jute Products Fair” and a new sales outlet, “JDPC EXPRESS,” at the Jute Diversification Promotion Centre (JDPC) premises in Tejgaon, Dhaka on Saturday.
He said the permanent showroom at JDPC would help promote local products and expand their market, while fairs and exhibitions would attract domestic buyers and raise awareness among international buyers.
The minister said the products include both machine-made and handmade items, with many of the latter produced by cottage and small industries.
Replying to a question on diversification and expansion of jute exports, Muktadir said a plan was being drawn up in coordination with the JDPC and associations representing private-sector entrepreneurs.
He said exporting raw jute generates little value addition, while processing it into higher-value products such as sliver, packaging materials and blended fibre could significantly increase export earnings.
“At the peak of the market last year, raw jute was priced at around Tk1.5 lakh, or about $1,200, per tonne,” the minister said.
The same quantity of jute could fetch around $2,400-$2,500 when converted into packaging products, while blended fibre products made by mixing jute with cotton or other fibres could earn around $4,000-$5,000 per tonne, he said.
Muktadir said the government’s goal is to convert the largest possible share of the country’s jute output into value-added products.
“Work is under way in coordination with relevant institutions and entrepreneurs to determine how much jute can be used in different sectors and for different types of products,” he said. 
He expressed hope that greater value addition would help the country maximise foreign exchange earnings and revenue from jute.
State Minister for Textiles and Jute Shariful Alam said the fair aims to promote local products in the domestic market, expand the use of eco-friendly goods and discourage the use of polythene.
He said the government is also working to make the country’s geographical indication (GI) products, diversified jute goods, Rajshahi silk, handloom products and other textiles better known and more widely used.
“The golden fibre jute was once closely tied to the country’s pride and people’s emotions, but much of that heritage has been lost over time,” he said.
Shariful said such fairs are being organised as part of efforts to increase jute production, expand the use of diversified jute products, develop markets at home and abroad, and increase value addition.
“JDPC organises such fairs at various places across the country every year,” he added.
He said “JDPC EXPRESS” would operate as a permanent sales and display centre, offering diversified jute products as well as handloom and silk items. The government also plans to establish similar showrooms at other important locations.
The state minister said there are plans to set up showrooms or display centres for local products at international airports and Bangladesh missions abroad.
He stressed the need for effective international promotion to raise awareness and expand the use of Bangladeshi products at home and abroad.
“With the cooperation of entrepreneurs and the media, the government wants to showcase local products more widely in the global market,” he said.
The six-day fair will run from 3 to 8 October, from 10am to 8pm daily. The new “JDPC EXPRESS” outlet will remain open seven days a week from 11am to 8pm.