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You read ‘History of Jute Industries’ in category ‘Essay examples’ forpapermaking. Qiu Shiyu, researcher of the Harbin Senior high ofSciences and expert of Jin background, concluded that Jews used to be a part of the work of designing “jiaozi, “made of coarse jute paper. A little, piece of jute paper with Chinese characters written onto it has been discovered in Dunhuang in Gansu Region, in southwest China. It truly is believed it was produced throughout the Western Han Dynasty (206 BC, 230 AD). several. 2 . Colonial Period

The British East India Company was the Uk empire Authority delegated in India from the 17th century towards the middle of 20th century. The company was your first Jute trader. The organization traded mainly in organic jute through the 19th hundred years. During the start of 20th hundred years, the company started trading raw jute with Dundee’s Jute Industry. This provider had monopolistic access to this kind of trade during that time. In 1793, the East India Company exported the firstconsignment of jute. This first shipment, 75 tons, was followed by additionalshipments at irregular intervals.

Eventually, a consignment found its way toDundee, Scotland where the flax spinning software were troubled to learn if jutecould end up being processed by mechanical means. During the same period, the Scotlanders had been experimenting about whether jute fiber could be mechanically highly processed. 1830 is definitely the year if the flax equipment were utilized by Dundee spinning software for spinning jute yarns. Since Dundee mill was your only dealer of jute, the use of flax machine finally led to embrace production and export of jute items in whole continent. Margaret Donnelly I had been a jute mill landowner in Dundee in the 1800s.

She build the first jute mills in India. The Entrepreneurs of the Dundee Jute Sector in Ireland were known as The Jute Barons. Beginning in the 1830’s, the Dundeespinners learned tips on how to spin jute yarn by modifying their particular power-driven flaxmachinery. The climb of the jute industry in Dundee did find a corresponding increase in theproduction and export of raw jute from the American indian sub-continent which wasthe only supplier of this primary item. The major jute growing areas were mainly in Bengal at the Kolkata side. Calcutta (now Kolkata) had theraw material end as the jute growing areas had been mainly in Bengal.

Therewas an abundant flow of labor, sufficient coal pertaining to power, plus the city was ideallysituated for shipping to world marketplaces. The first jute work was established atRishra, on the Riv Hooghly close to Calcutta in 1855 once Mr. George Auclandbrought jute spinning machines from Dundee. Four years later, the first powerdriven weaving manufacturing plant was build. Although Bengal, particularly East Bengal, was the main producer of top quality raw jute, the first jute work was established by Risraw around calcutta around the bank of the hughli simply in 1855, after twenty years of mechanised spinning of jute in Dundee.

The delay was due to the nonavailability of technological hands and power to travel machines. In 1854, coal mines were opened by Raniganj. Captivated by the convenient availability of power, George Aucland, an Englishman established the first jute mill. But he could not make fair profits and left the organization. In 1859, the Bornee Company founded the second generator with content spinning and weaving cloth facilities. Contrary to the Aucland mill, that started progressing after their establishment. Figure 1 Dundee Jute Mill in Ireland. The Entrepreneurs of the Dundee

Jute Industry in Scotland were known as The Jute Barons. Figure 2 Dundee Jute Mill in Scotland. In 1833, Jute dietary fibre was spun mechanically in Dundee, Ireland. Within five years it doubled it is plant size. By 1866, three fresh mills had been established. Among 1868 and 1873, these types of mills produced large earnings. Five businesses started in 1874 and 8-10 more in 1875. Hence Bengal knowledgeable a real increase in jute industry towards the end of the nineteenth 100 years. With the organization of jute mills, Bengal became a significant exporter of sacking hand bags.

Calcutta appeared to be a strong rival of Dundee and successfully penetrated into Dundee’s hessian market in several parts of the world, including America, primarily mainly because Calcutta experienced the cost benefits in creating jute items. Secondly, it had been situated in close proximity for the jute growing districts of Eastern Bengal and Assam. Thirdly, completely cheap time. Fourthly, the mills ran for 12-15 to sixteen hours, and sometimes even for twenty two hours daily. This resulted in a clear good thing about Calcutta producers in budgetary terms. Additionally, they could offer a greater quality of jute.

In sixty years between 1880 and 1940, the number of generators increased simply by 5 times, those of looms by about 14 occasions, of spindles by 19 times, and of persons employed by 11 occasions. The growth of the industry was significant through the 20 years between 1900 and 1920. During the Great Depression of 1929-33, the jute sector was significantly hit considering that the demand for jute goods decreased drastically all over the world. In the next three decades, the jute industry in India enjoyed even moreremarkable growth, rising to commanding leadership by 1939 with a total of68, 377 looms, centered mainly for the River Hooghly near Calcutta.

Thesemills by itself have proved able to supply the world demand. Several historic events were responsible for the expansion of the jute industry. In 1838, the Dutch government specified bags made of jute instead of flax for carrying caffeine from the East Indies. During those times flax was imported from Russia. Nevertheless the Crimean War of 1854-56 led to the stoppage of supply of flax from Russia and forced Dundee, the famous jute manufacturing hub of UK, to look for substitutes.

In Dundee the flax mills had been converted into jute mills. The American Detrimental War (1861-65), on the other hand, offered further push to the jute trade, since supplies of American cotton were much limited. Since then, the industry did not return to flax or cotton again. The primary reason for this long term shift have been its comparative cost edge. The jute industry grew rapidly and jute generators were proven in many countries, which includes USA, Australia, France, Athens, Austria, Italia, Holland, The country of spain, Russia, Brazil and Bengal.

This generated a rapid increase in the demand to get jute. The Bengali cowboys responded quickly to][ meet the world demand by increasing the area under jute cultivation. The outbreak of the First Community War led to a rapid increase in the demand intended for raw jute, since it utilized to produce sandbags to protect soldiers in trenches also to produce gunny bags to carry food materials for the army. Undoubtedly, the price of jute also went up sharply. Table 1 Growth of jute market in Bengal, 1879-1939 Season |Mills |Looms |Spindles |Employment | |1879-80 |22 |5, 000 |71, 000 |27, 000 | |1900-01 |36 |16, 75 |331, 400 |114, 800 | |1920-21 |77 |41, 600 |869, 900 |288, 400 | |1938-39 |110 |69, 000 |13, seventy, 000 |299, 000 |

Before it absolutely was put to commercial use, jute was used mostly for home purposes. With the conversion of the Dundee flax mills into jute processing mills, the need for jute increased manifold in the world. French peasants were highly skilled in jute cultivation and can respond quickly to conference this increased demand. In 1872, when industrial utilization of jute experienced begun, it was mainly expanded in the zones of pabna, bogra, darjeeling, dinajpur, rangpur and Hughli (West Bengal). The ratio of property under jute cultivation to perform cropped area in these areas in 1872 was 14%, 11%, 9%, 7%, 6% and five per cent respectively.

Therefore, jute fostering spread to other zones. In 1914, leading schisme in terms of the above mentioned ratio were Rangpur (28%, ) Bogra (25%), Tippera (comilla, 24%), Pabna (21%), Dhaka (18%), Faridpur (16%), Hughli (West Bengal, 13%), Rajshahi (11%), Jessore (10%), Nadia (10%), and Dinajpur (7%). Following your end of the First World War in 1918, the earth demand for organic jute lowered. This had a negative influence on the area below jute cultivation. The situation worsened for jute cultivation during the Great Depression of 1929-33. The amount paid sank so low that jute growing became unprofitable.

As a result, cowboys greatly reduced their area beneath jute fostering. By 1939, economic recovery took place. The breaking out of your Second World War induced an increase in the need for jute and among 1939 and 1945, peasants put more areas underneath jute fostering. The earliest products woven of jute in Dundee were coarse baggingmaterials. Withlonger knowledge, however , greater fabrics known as burlap, or hessian as it isknown in India, were produced. This kind of superior fabric met a ready sale and, eventually, the Indian Jute Mills started to turn out these fabrics.

The natural benefits these generators enjoyed soon gave Calcutta world command inburlap and bagging materials and the mills in Dundee and other countries turnedto specialties, a great variety of that have been developed. three or more. 3. Post-Colonial Period After the fall of British Empire in India during 1947, it had been found that every jute mills of the region fell in Western Bengal, which became a part of India and everything major jute growing schisme became part of East Bengal, a province of Pakistan. Because it experienced no jute mills, East Bengal faced problems in marketing of raw jute.

The problem was, however , quickly overcome simply by establishing jute mills in East Bengal. During that period, most of the JuteBarons started to evacuate India, leaving behind the industrial create of the Jute Industry. A lot of the jute mills in India were absorbed by the Marwaris businessmen. In East Pakistan after rupture in 1947 lacked a Jute Sector buthad the optimum jute fiber stock. Since the tension begun to rise among Pakistan and India, the Pakistani believed the need to installation their own Jute Industry.

A number of groups of Pakistaner families (mainly from West Pakistan) came into the jute business simply by setting up a number of jute mills inNarayanganj of then East Pakistan, the most significant ones are: Bawanis, Adamjees, Ispahanis and Dauds. several. 4. After Nationalization Following your liberation of Bangladesh from Pakistan four decades ago, most in the Pakistani held Jute Generators were taken over by the government of Bangladesh. Pakistani work owners (about 68% with the total loom strength) left the country, giving the market in jumble, huddle. Abandoned jute mills were subject to hefty looting.

The modern government of Bangladesh were required to take up the responsibility of rebuilding the industry. With a nationalization purchase, about 85% of sectors, including almost all jute mills, were nationalized. Later, to regulate these Jute mils in Bangladesh, the us government built up Bangladesh Jute Mills Corporation (BJMC). Bangladesh Jute Mills Firm (BJMC) was formed to manage and appear after all the 73 jute mills having 23, 836 looms in those days. At a single stage the number of jute mills under the jurisdiction of BJMC went up to 78. BJMC had to restore the sector from a ruined location.

Immediately after liberation, it became very difficult to solve trouble of financial hardship of the jute industry mainly because financial institutions weren’t working well. Frequent electricity failures and power stoppages also required the sector to go through heavy losses in terms of creation and foreign currency earnings. Moreover to these challenges, the brief supply of extras, labor unrest, wastage in production and so forth also shook the market severely. Intended for jute market of Bangladesh, the initial two years after liberation was your period of reorganization.

The government offered cash subsidy to the industry, which amounted to Tk 200 million annually. The annual money subsidy was reduced to 100 million since 1976-77. Thanks to this kind of policy and periodic devaluation of foreign currency, Bangladesh could retain its position of a perfect exporter of jute items in the money areas of foreign trade. The industry earned earnings in 1979-80, when the security was withdrawn. By December 1979, BJMC had seventy seven jute generators, two carpet backing mills, and two spare parts producing units. In 1980, 6 twine generators were disinvested to the personal sector.

In June 81, BJMC had 74 generators under its administration. These mills experienced about 165, 000 personnel and twenty seven, 000 bureaucratic and office staff. a few. 5. Denationalization Denationalization of jute generators started in September 1982. The federal government ordered BJMC to full the process by simply 16 12 , 1982, but only 12 mills could be handed over to Bangladeshi owners by that time. The valuation process and settlement of other company matters associated with handing over of the generators took quite a while.

Among the jute mills owned by BJMC, 46 experienced satisfactory monetary performance in 1982-83, the moment their profit before contribution to national exchequer involved Tk 240 million. The same mills incurred total losses of about Tk 430 mil in the previous 12 months. Jute generators incurred losses regularly over years and external subscriber agencies pressed hard to get denationalization. A lot more mills had been put into the denationalization list. In 1999, BJMC had 33 mills. The World Bank extended to job closely together with the government to restructure the jute sector, especially through denationalization, merger, dissolution, drawing a line under and establishing of new devices.

By 98, BJMC had an accumulated lack of more than Tk 28 billion and a debt of more than Tk 10 billion. Losses incurred simply by BJMC in 1997-98 had been Tk installment payments on your 38 billion dollars. Major popular features of the BJMC mills in that year had been: total creation capacity , 451, 707 tons, looms in operation , 12, 350, loom several hours , fifty nine. 3 million, production per loom hour , a few. 33 kilogram, baled production , 312, 000 plenty, consumption of raw jute , 319, 306 plenty, local revenue , 30, 000 plenty, export 256, 000 plenty, value of total sales (including export bonus) , Tk almost 8. billion, creation cost per ton , Tk 31, 349, salary paid to workers , Tk a few. 89 billion dollars, and wage paid to employees and executives , Tk 881 million. several. 6. Overall performance of private sector The efficiency of the personal sector jute industry is additionally not motivating. privatization alone has been a very problematic and slow process. Resistance via workers/employees with the mills and lengthy formalities forced the procedure to be slow. In 1998, away of forty jute mills in the private sector, three were shut down and two laid off. The private sector jute mills run on a very low profile.

Approximately December 1999, the exclusive sector jute mills have got accumulated losses of more than Tk 12 billion dollars. The jute spinning generators in Bangladesh export practically 100% of their production. In 1998, there were forty one spinning mills, which recently had an annual production capacity of around 195, 500 tons. Products of these generators are wool and string, which are used all over the world, for floor covering weaving, wall membrane covering, jute webbing, fabric for shopping bags, limits, handicrafts, canvas, decorative fabrics, laminated towel, and basic safety fuse pertaining to explosives.

These types of mills utilize about twenty-five, 000 persons and the organisations have their individual trade human body named Bangladesh Jute Spinners Association. three or more. 7. An overall trend of production and sales three or more. 7. 1 ) Trend of production Production trend with the jute production sector can be broadly classified into four periods: 1st phase (1950-1970), second phase (1972-1981), third phase (1982-1990), and next phase (1991-onward) (Figure 1). During these 4 phases, jute manufacturing sector had skilled various within policies, and also in the routine of utilization of jute and jute items.

In the pre independence period, jute mills were held by a small number of private internet marketers. During this phase, average hessian production was 155, 586 metric lot (MT) per year, of which 87 per cent was exported, the comparable statistics for sacking were 267, 614 MT and 79 per cent correspondingly. Production come to its optimum in 1969, with an output of 5. seventy four lakh MT. Due to political instability and damages triggered during the year of Liberation in 1971, operations of jute generators were cut off. Consequently, development declined four decades ago and 72. Thereafter, creation started to enhance.

In the second phase (1972-1981), government chose to nationalize the jute manufacturing sector, and took power over all the non-public sector jute mills. Throughout the 1970s, common level of development of hessian was about 165, 000 MT, of which 94 percent was exported, when comparable figures for sacking were 225, 460 MT and eighty six percent respectively. Growth in the production of jute merchandise between 60 and 1980 can be attributed to the growth in production of hessian, sacking and carpeting backing material (CBC) items. Figure three or more Production of numerous kinds of jute goods, 1960-2006 (Source: BJMC, BJMA and BJSA)

Desk 2 Routine trend of jute goods production |Period |Hessian |Sacking |CBC |Yarn/Twine | |Up to 70 |155, 586 |267, 614 |23, 929 |0 | | |(86. 9) |(78. 2) |(96. 7) |(0. 0) | |1972-80 |165, 033 |225, 458 |63, 578 |1, 953 | | |(93. ) |(86. 3) |(95. 5) |(73. 3) | |1981-91 |219, 048 |270, 556 |80, 415 |61, 090 | | |(94. 8) |(83. 7) |(97. 0) |(69. 1) | |1992-05 |87, 968 |96, 839 |39, 777 |163, 830 | | |(99. 5) |(71. 7) |(89. 7) |(90. ) | Production of yarn/twine made up a small talk about of total production during the 1970s. Throughout the 1980s (third phase), the then government decided to denationalize a number of jute mills in line with the project of economic liberalization. A mixed craze is noticed in the production of jute products during this stage, which reached its maximum in 1990 with a creation of five. 96 lakh MT. Development of wool gradually increased in the 1980s. Most importantly, development of hessian and sacking- two major traditional goods gradually decreased, especially since the late eighties. Production of CBC decreased as well.

In the fourth phase (1990-onward), pursuing the suggestions on the planet Bank, govt started to denationalize a number of other public sector jute mills which usually resulted in the shutdown of countless jute generators as well. Nevertheless , production of jute goods has not indexed even following adoption of various policy steps. Indeed, development of traditional products just like hessian, sacking and CBC has continuing to drop with the exception of expansion in the production of wool and string. Yarn/twine today accounts for the major portion of jute goods and also time, the production is on a constant rise.

During 2006, Bangladesh’s share inside the global development of jute goods was approximately 18 per cent. 3. 7. 2 . Trend of Sales Both equally public and private sector jute mills offer their products in either the domestic market or the intercontinental market. Though overseas foreign trade comprised main share of Bangladesh’s jute goods production, domestic sale has been posting a rise, which usually now makes up about 38 per cent of the total production. Bangladesh is the leading vendre of jute goods in the world and her share in the global market is gradually increasing- which accounted for 60 percent of the global exports 5 years ago.

If foreign trade of natural jute is definitely taken into account, total export might reach much more than 75 %. According to Bangladesh Jute Association (BJA), Bangladesh exports about twenty-five lakh dancings of jute goods which will accounted for regarding 56 % of the total raw jute grown in the area. It is well worth noting right here that Bangladesh and India currently meet up with more than 80 per cent with the global export demand for jute and jute goods, to compare, this kind of share was 79 percent in 1970. [pic] Figure 4 Sales in Domestic and International market (%) three or more. 8. Contribution in Economic climate The contribution of jute sector to economy of Bangladesh is usually enormous.

Bangladesh holds the 2nd position as a Jute maker in the world while using average production of Jute 1 . 08 m ton/Year. More than 85% of globe production of Jute is definitely cultivated inside the Ganges Delta , having the major portion of it, Bangladesh became the greatest producer of Raw Jute or Jute Fiber in the world. For centuries, Bangladeshi Jute got and still features demand inside the international industry for higher quality fibers. This fact makes Bangladesh the exporter (80% + market share) of Jute Fiber in the world, when India provides nominal dominance over foreign trade of Natural Jute Fibers.

Total typical export profits from jute and jute goods will be US$ 611 million (60 lakh bales)/Year. Average export value of raw jute is US$ 140 , 000, 000 and the numbers of factories will be 187. Profits from jute and jute product exports hit the billion dollars mark initially in the country’s history completely. Jute sector is adding 4. 68 percent in export getting last monetary year and two % increase during 2009-10. This kind of sector have been generating job to a significant segment of total population of the country, directly and indirectly through the years. Bangladesh generates 5. -6. 0 mil (55-60 lakh) bales of raw jute every year that some 3. 2 mil (32 lakh) bales are being used in the existing 148 jute mills. The nation exports installment payments on your 4 mil (24 lakh). The total demand for jute goods in the international market is zero. 75 mil (7. 60 lakh) tons. Bangladesh export products 0. 46 million (4. 60 lakh) tons of jute goods although India likes a share of zero. 285 mil (2. eighty five lakh) loads in the foreign market. Dhaka controls sixty two per cent talk about of the total jute items market of the world and earn Taka twenty. 125 billion (2012. five crore) simply by exporting jute goods.

Bangladesh is the solitary exporter of raw jute. In the year 06\, the country released 2 . four million (24 lakh) bales of organic jute highly valued at Taka 9. seventy seven million (977 crore). Altogether Bangladesh fetched Taka 29. 395 billion (2939. five crore) simply by exporting natural jute and jute merchandise. There are 55 private jute spinning generators producing jute yarn/twine underneath Bangladesh Jute Spinners Affiliation (BJSA). The mills underneath jute rotating sector generate 0. 29 million (2. 90 lakh) tons of jute yarn/twine and export zero. 261 , 000, 000 (2. sixty one lakh) meters. tons of quality yarn/twine consuming 1 . 9 illion (19 lakh) bo?tes of high quality organic jute and earn foreign currency worth Taka 12 , 000, 000 (1200 crore) per annum. 3. 9. Present Situations It is often recognized that Jute and Allied fabric occupy a distinctive position since eco-friendly, bio degradable, alternative natural fiber. We should likewise understand that Jute sector of Bangladesh made and continue to be make significant contribution towards the national economic climate. Apart from it is versatile make use of from domestic area to industry, it protects environment from various ways. All the export earnings from the Jute Market vis-a-vis Jute sector are net foreign currency earnings.

Home-based value upgrades are exceedingly high. Therefore , a viable Jute Industry can be an ideal type of activity pertaining to the economical development of the region. We should often consider that Jute Market is native one. Jute, of the best quality in the world, is available in Bangladesh. It really is one of the few natural resources the fact that country provides and they have provided Bangladesh with a comparison edge on the globe trade in jute products. But , over the past decade, the jute industry has suffered even more downs than ups pertaining to no fault of its own.

It is often allowed to suffer gradual decrease mainly due to lack of suitable policy actions. Jute industry in Bangladesh (erstwhile East Pakistan) began as export oriented market with the aim of rapid industrialization. It became the source of money earnings. The industry was performed viable and kept increasing with the Government. financial assistance on foreign trade of jute goods through bonus voucher. After liberation of the country in 1971 and nationalization of the Industry in 1972, such monetary assistance to Jute Industry was withdrawn and the Industry started out incurring failures.

On the other hand, the newly founded BJMC had to concentrate mainly on treatment of the battle torn Jute Industry and expand the earth export market share which was used by the competitors during warfare of liberation. At the preliminary stage Bangladesh Jute Sector i. elizabeth. BJMC was required to face significant problems to recover the shed market. By the untiring work to improve the management, development and foreign trade, the Market i. electronic. BJMC began achieving good success from 1973-74 with the development of 500 thousand loads and foreign trade of 445 thousand tons from 320 thousand plenty and 240 thousand tons respectively of 1971-72.

With help of cake chart the effect can be demonstrated in the subsequent. [pic] Figure 5 Bangladesh Export in Major Items during 1972-73 In 1977-78 BJMC could achieve an export of 531 1000 tons, mainly traditional items (hession, sacking , CBC) against the prior highest export of 506 thousand plenty in 1969-70. In 1980-81 Jute Sector could attain highest production of 590 thousand tons exceeding the production of 1969-70. In 1981-82, the Jute Industry once again could break the foreign trade record of 1969-70, transferring around 537 thousand loads against production of 586 thousand tons.

Large scale denationalization started in 1982-83. But , non-public sector jute mills wasn’t able to perform the way it was expected for many factors. As a result, functionality of the overall Jute industry started showing signs of damage gradually by 570 thousand tons (production) and 514 thousand loads (export) in 1982-83 to 286 1, 000 tons (production) and 192 thousand lots (export) in 2003-04. It truly is seen in the figure below more clearly. [pic] Determine 6 Bangladesh Export in Major Goods during 1993-94 During Eighties the new jute yarn/twine mills came into the picture and broadened gradually.

It might increase foreign trade of yarn/twine from twenty eight thousand tons in 1983-84 to around 380 thousand loads in 2009-10. The steady increase in the production and export of yarn/twine could help enhance of overall export of Jute goods to nearly 600 thousand tons with all the share of only about 200 thousand tons of traditional items i. at the. Hessian, sacking , CBC. It may be found from the figures given below that production and export of BJMC and BJMA generators (mainly classic products) noted gradual fall over the years. Stand 3 Productions and Foreign trade of BJMA and BJMC Mills Yr |Production |Export | |1981-82 |587 1000 tons |537 thousand loads | |1991-92 |416 thousand tons |408 thousand tons | |2001-02 |321 1000 tons |257 thousand plenty | |2009-10 |302 thousand tons |219thousand tons | Position in current economic year is usually not encouraging in BJMC , BJMA mills since may be found from the desk (6months/ July-Dec’10) below. Table 4 Creation and Export of BJMC , BJMA Mills during July-Dec’10 Types of Generators |Production |Export | |BJMC |78 thousand tons |56 thousand plenty | |BJMA |60 thousands of tons |37 thousand plenty | |Total |138 thousands of tons |93 thousand lots | Nevertheless , the production and export of yarn/twine mills mainly underneath BJSA (Bangladesh Jute Spinner software Association) registered increase slowly but surely from 55 thousand plenty and twenty-eight thousand lots in 1983-84 to 399 thousand tons and 380 thousand tons in 2009-10 respectively. It could be maintained within this financial season also on the basis of its production and export of 227 thousand lots and 193 thousand plenty of July-Dec’10.

Table given below on the comparative situation in production of traditional products expose that while Bangladesh jute sector is going, Indian jute industry is booming. Table 5 Relative Position of Bangladesh , India in Production of Traditional Items |Years |Bangladesh |India | |1999-2000 |3. 10 lac tons |12. 45 lac tons | |2005-2006 |2. 43 lac tons |13. 42 lac tons | |2009-2010 |2. 54 lac tons |14. 50 lac tons |

The present govt. has taken some positive steps to rejuvenate the Jute Industry, especially BJMC generators. But , piece meal actions will not provide the purpose mainly because, production and export of traditional items, both in BJMC and BJMA (private) generators recorded continuous decline into a frustrating level over the years. A recently-created demand for jute carriers in Thailand has come like a boon to get the jute industry in Bangladesh, elevating hopes for an improvement in exports that fell 13 percent during July-February of the current fiscal yr. Also, India has recently elevated import of jute and jute merchandise after the currency begun to gain resistant to the US dollar.

According to MD Shamsul Haque, movie director (marketing) of state-owned Bangladesh Jute Mills Corporation which includes 21 jute mills operating, “Exports of jute merchandise to our classic middle-eastern and African markets have decreased amid political unrest in Libya, Syria, Iraq and also other countries. Yet our export products increased within the last three months even as got new markets, Thailand have appeared as a new market to get our jute sacks along with Vietnam.  The marketplace in Asia has increased after the current Thai-government began buying a huge quantity of grain in jute sacks to satisfy its give your word of providing a guaranteed value to farmers. Bangladesh has received orders pertaining to supplying two crore (20 million) components of jute bags from millers in Asia. Thailand offers opened up a brand new opportunity for Bangladesh. It has be met with a true blessing as Bangladesh’s stocks had been piling up as a result of a fall in exports.

Exclusive jute generators will also be benefited due to the decision of Thailand, which is the largest exporter of rice and forecasts to generate 30 million tons of grain in 2011-12. Thailand requires three million pieces of hand bags a month to package rice which means around 36 million pieces of sacks will be essential a year. In accordance to Mahmudul Haque, controlling director of Janata Jute Mills Limited, “Demand for jute bags is high in Asia.  This individual said, because his generator alone could not meet the orders, he involved in two different mills. Janata ships 3. 2 lakh pieces of jute sacks monthly to Asia, he stated. Exporters said the improved demand and higher rates of jute goods allows them to narrow down the deficits in foreign trade receipts in the first half of the year.

Nonetheless it may not be conceivable to offset the past show up and content a positive growth in export products by the end in the fiscal yr on June 30, 2012. Export statements from the jute industry- the second biggest foreign trade earner- fell 13. sixty six percent to $615 million in the July-February period of the latest fiscal season, from $712 million during the same period last year, according to Foreign trade Promotion Bureau. In the subsequent figure, workers carry lots of jute sacks by a factory in Bogra as, Thailand and Vietnam have surfaced as fresh markets pertaining to jute sacks. [pic] Number 6 Employees carry packages of jute sacks in a stock in Bogra (source: STAR magazine, Drive 27, 2012).

Total characters are not readily available readily, this reveals by some of the available figures that export of BJMC in the major adding regions e. g. Australia, America, Middle section East, The european union, Africa registered sharp decline in recent years mainly because of fall in creation and lack of effective marketing efforts. Present situation from the industry necessitates immediate measures/actions in the next areas:? The newest challenges and opportunities shown by the changing global environment of the use in the progress natural fibres,? Modernize the jute market to improve performance in creation and control to reduce price and enhance product quality.

With the surge of unavoidable competition facing our jute sector, inside the international discipline it should be each of our endeavor to aid upgrading the skill sets of the Personnel, Supervisors and Managerial staff who are utilized in the Jute Industry.? Entail and ensure the active co-operation and partnership of Company, Financial Institutions, Energy supplying Firms and Entrepreneurs in the satisfaction of these aims.? Power lack should be decreased either simply by power supplying agencies or perhaps by establishing generators (gas or diesel) in these kinds of mills exactly where it is required.? The efforts need to be place with all earnestness to bring the efficiency level to at least 80%.? So far supervision at the generator level is involved, it should be linked to productivity and efficiency. Allow the jute industry to build world class state-of-the-art manufacturing capacities in conformity with environmental standards, and then for this goal, to motivate Foreign Direct Investment and also research and development inside the sector.? Intense marketing steps need to be taken on internationally. Marketplaces like The african continent and Middle East should be given main concern to recover the lost market. 3. twelve. Major downsides Major challenges of the jute mills are as follows: ¢ Increase in the price of production even though the sales prices of jute goods continue to be at the same level or even decrease, ¢ Build up of huge loss and consequently, of big debts, ¢ Decline in exports of jute goods, ¢ Electrical energy failures, ¢ Excessive wastage, ¢ Labor unrest, Poor management that affects productivity and frequent changes in authorities policies, ¢ High cost of jute goods when compared with synthetics led jute products users to turn to synthetics. Ending Remarks Prior to the independence, the had half a dozen jute wool mills. Nevertheless , this sector had flourished during the ’80s as the industry skilled a setback in the developed countries during the same period. The business people of the country bought these types of second-hand jute mills machineries with a really low investment and started creating these jute spinning generators. Two types of opinion can be found in Bangladesh over the supervision of existing mills under BJMC. One particular group is within favor of privatization from the xisting state owned jute mills, in which another group advocates reorganization/restructuring of BJMC mills. The mills under Bangladesh Jute Mills Firm are conveying 0. 128 million (1. 28 lakh) m. a lot of jute products i. at the. Hessian, Sacking and CBC. Mismanagement, data corruption, inefficiency and lack of qualified manpower include gripped the BJMC generators. The generators should be manage professionally to be competitive on view market yet that are not applied in case of BJMC, which is causing hundreds of millions of taka loss to the national exchequer. The come to set pragmatic/realistic believed on the jute sector to revive this appealing sector. The federal government should develop plans to bring back the wonder of the golden dietary fibre.

The demand intended for environmental friendly jute items are on the rise in a global market and Bangladesh should certainly tap this kind of opportunity simply by implementing a lot of short-, mid- and long lasting plans to rejuvenate the ailing jute sector of Bangladesh. At present it is pointless to be nostalgic about aged prime era of our jute industry. At this point we must formulate a pragmatic brief, mid and long-term program keeping in mind about future needs of jute goods’ demand. Instead of keeping in mind past faults, we must take lessons away of that and look forward with practical alternatives which will reestablish viability to the ailing Jute sector. This could be the only perfect object. Recommendations Some tips are recommended below to get considered by government in the greater interest of the jute sector: To revive the wonder of the jute industry, a high-powered panel should be constituted comprising the Finance Admin under the path of the Chief Adviser. ¢ The government should implement several short-, mid- and long term proposals in a bid to revive the jute sector. ¢ The getting out of jute generators of the Bangladesh Jute Mills Corporation ought to be converted into open public limited companies keeping some shares inside the hands of the government like this of the Bangladesh Biman. The federal government may build a “Regulatory Board” to run their existing corporations professionally and efficiently. The Regulatory Body will monitor every device of the company and ensure all their accountability. The federal government should organize a , special fund’ to update its existing jute mills to purchase required spares intended for machineries. Underneath this bundle the government will provide 50 % of the total credit as grants and banks will give rest 50 percent on a long lasting credit to jute generators. ¢ Abnormal power supply can be adversely affecting production of existing jute mills by simply cutting their particular competitiveness. The government may question donor companies like the Community Bank (WB) and the Oriental Development Lender (ADB) to set up a , special fund’ to provide long-term loans by 3. 00 per cent interest to the existing jute generators to help them to acquire “stand-by generators”. The use of uphold generators by jute mills will help to save electricity in our national grid. Govt is offering 7. your five per cent cash incentives in jute products exports. To expand the marketplace and increase competitiveness, the rate of cash incentives should be increased to 15 per cent from present rate. ¢ The government ought to enact a law making mandatory or compulsory to work with of jute bags to get internal usage in presentation. To meet requirement of local market segments, an initiative is necessary to pack glucose, rice and pulse in 5-10 T. G. jute bags. The usage of jute items in the local companies are limited. To improve the use, the government should also produce law to use compulsory by least 20 per cent of total sugars and cement packaging with jute hand bags. The jute industries being an agro primarily based and fully export-oriented sector, the commercial banks are not implementing the Bangladesh Bank’s order to present export credit rating at lower interest rate (7%), commercial banking companies should give “Export Funds Credit” to jute generators which they give to the leather sector. ¢ Problems of top quality jute seedling is a frequent phenomenon near your vicinity every year. The whole requirement of jute seeds happen to be 4, 000/5, 000 loads against federal government supply of just 400-500 tons. To meet community demand, lesser quality Indian seed enter the Bangladesh market through imports and smuggling. To boost the situation and be sure quality seeds, the government will need to set up , seed bank’ to deliver seeds among planters by subsidized charge. ¢ Authorities should also set up to provide fertilizer at subsidized rate. Bangladesh Jute Exploration Institute (BJRI) should also have appropriate procedures to acquaint their new invention “retting process” among the list of farmers. ¢ Lack of experienced manpower features put the industries in grave situation. To overcome the specific situation at least a , jute college’ may be organized to set up for one of the shut down BJMC jute mills. To address this situation immediately, government ought to introduce “Diploma Course” about jute in the six fabric institutes as early as these are under the ministry of textile and jute. The significance of Mongla Port has increased as array industrial units have been set in the the southern part of part of the country recently. The government should start necessary procedure for expand and develop the Mongla Dock. ¢ The federal government should also take measures to advertise and expand international’ operate of jute products by managing existing market segments and by expanding of new owners. References 1 . http://cpd. org. bd/pub_attach/op78. pdf 2 . http://www. thefinancialexpress-bd. com/more. php? news_id=14562 3. http://www. business-standard. com/india/news/jute-industry-seeks-banimportsbangladesh/381205 4. http://www. stoppressbd. com/home/news_details/66948 5. http://www. banglapedia. rg/httpdocs/HT/J_0137. HTM six. http://www. worldjute. com/jute_bangladesh/bangladesh_jute_news. html 7. http://www. thefinancialexpress-bd. com/more. php? news_id=123813, date=2012-03-18 8. www. theindependentbd. com/business/finance/30375-govt-targets-to-double-jute-production-in-2011-12. html 9. http://www. worldjute. com/about_jute/juthist. html 12. www. jute-industry. com/history-of-jute. html code 11. http://www. thedailystar. net/suppliments/2011/anniversary/part4/pg7. htm doze. http://www. bangladeshembassyinitaly. com/bangladesh. php 13. http://www. experiencebangladesh. com/bangladesh-business-jute. php 14. http://bangladesheconomy. wordpress. com/category/jute/