Jute goods export target of Bangladesh may not be achieved this fiscal

Overseas sales of jute and jute goods may fail to achieve the target set for the current fiscal year (FY) which industry people attributed to the ongoing global slowdown and turmoil in the Middle East.

Earnings from jute and jute products export hit the billion dollar mark for the first time in the last fiscal. In FY 2010-11, export of raw jute increased by 82 per cent and jute goods by 38 per cent, taking the total shipment of the 'golden fiber' to $ 1.11 billion - a figure not seen even in the heyday of the cash crop.

Explaining the last year's performance, they attributed the rebound to the surging demand of the natural fiber in the developed countries, sharp price hike of jute items in the international market.

But exporters are afraid of achieving the target set for the current fiscal year. The state-owned Export Promotion Bureau (EPB) has set a target of earning $ 1.34 billion in FY 2011-12.

In the first half of FY 2011-12, the exports of jute and jute goods declined by 13 per cent to $ 477.10 million compared to the same period of the last fiscal and it also fell short of target by 24 per cent.

During the same period in the last fiscal, jute and jute products registered a growth of 58.33 per cent to $ 548.66 million and it also surpassed the target by 3.78 per cent, the EPB data said.

Raw jute export fell by 32.11 per cent, jute yarn and twine by 8.28 per cent while jute sacks and bags grew by 11 per cent in July-December of the current fiscal.

However, jute sacks and bags failed to achieve the target by 11.30 per cent during the period.

"The scenario is different in the current fiscal following the ongoing global economic meltdown and turmoil in the Middle East," Vice Chairman of Bangladesh Jute Mills Association Haroon-ur-Rashid told.

The cooling of the global economy bites our overseas sales resulting in a drastic fall of performance; an exporter said adding prices of jute and jute products also decreased in the international market in recent times compared to last year. The devaluation of taka against dollar also affects the sector, he added.

The quantity of jute and jute products export might be more or less the same this fiscal, but its value in currency may not be as expected, industry people said. Meanwhile, the overall exports

crossed $ 11.77 billion mark in the first half of the current fiscal and EPB officials are confident of meeting the export target by the end of the fiscal.

Source: The Financial Express, Bangladesh, January 29 2012

Bangladesh jute export income falls by 13 per cent

Export earnings from the jute sector declined by 13 per cent in six months to December due to lower demand and prices of raw jute and jute goods in the international market, industry insiders said.

They said the declining trend of jute price overseas has been continuing for several months.

With the euro-zone crisis deepening, the requirements of jute products have also turned downward, the sector leaders said.

The country earned US$ 477.10 million during July-December period of 2011-12, down from US$ 548.66 million in the corresponding period of the last fiscal year, Export Promotion Bureau (EPB) data showed. The sector also missed the target of export earnings during the period to US$ 548.66 million from US$ 627.07 million.

During the July-December period in fiscal year, the country earned jute yarn exports $ 227.84 million, down from $ 248.40 million and $ 125.37 million from raw jute lower from US$ 184.66 million in the corresponding period of last year. The authority has fixed the target of export earning of the sector US$ 1,341.04 million for the fiscal year 2011-2012.

Bangladesh Jute Spinners Association (BJSA) Chairman Muhammad Shams-uz-Zoha said jute yarn, which accounts for over 60 per cent of total export earnings from the sector, is mainly exported to Turkey. He said presently, Turkey has reduced yarn import from the country, fearing the fallout of the European crisis. The demand from other countries has also dropped by this time, he added.

Middle East, North African countries and Turkey import 66 per cent of Bangladesh's yarn to use it as a raw material for making carpet. Belgium, Saudi Arabia, Syria, Jordan and Egypt also buy jute yarn and jute goods from Bangladesh.

"Bangladesh usually exports 350,000 to 380,000 tonnes of yarn a year and the rest of the total global demand is met mainly by India," said the BJSA leader.

Bangladesh Jute Association (BJA) chairman Mahfuzul Haque said the demand and price of raw jute have decreased recently in overseas markets.

He said international buyers have been offering low prices for jute amid the price fall in the local market. He added last year they sold per ton raw jute at $ 700, which came down to around $ 400 in the international market.

Mr Haque noted that they bought per maund of raw jute at Tk 1,600 in the beginning of the season. "Presently, the price of the golden fiber has fallen nearly 50 per cent in the local market". BJA exported 2.2 million bales of raw jute last year but this year it will be able to export 1.8 million to 2.0 million bales due to the global meltdown, said the traders.

India, China and Pakistan are the major buyers of Bangladeshi raw jute. Vietnam, Ivory Coast, Malaysia, the Netherlands, Nepal, Bhutan, USA, Russia, and Thailand also import raw jute from the country.

Source: The Financial Express, Bangladesh, January 12, 2012

Bangladesh Export earnings from jute sector drops by 6pc in last five months

Export earnings from jute sector dropped by six per cent during the July-November period of current fiscal year (2011-12) due to debt crisis in developed countries, said industry leaders. Following the financial crisis in Europe we are getting less response from the foreign buyers of jute products, they said.

The sector insiders said requirements of jute products mainly raw jute and jute yarns have declined significantly recently. The country has earned US$ 410.30 million in five months of this fiscal year, lower from US$ 434.64 million in the corresponding period of last fiscal year, Export Promotion Bureau of Bangladesh (EPB) data showed.

The sector also missed the target of export earnings during the period from US$ 509.46 million to US$ 410.30 million. During the July-November period in fiscal year 2011-12 the country earned from jute yarn export US$ 193.24 million, down from US$ 199.79 million and US$ 113.66 million from raw jute lower from US$ 145.06 million in the corresponding period of last year.

Bangladesh Jute Spinners Association (BJSA) Chairman Muhammad Shams-uz-Zoha said jute yarn, which accounts for over 60 per cent of total export earnings from the sector, is mainly exported to Turkey. He said presently Turkey has reduced jute yarn import from the country because of their financial crises. Besides, the demand from other countries has also declined by this time.

According to him, of the total production, 95 per cent of the jute yarn is exportable. Middle East, North African countries and Turkey import 66 per cent of Bangladesh's yarn to use it as a raw material for making carpet. Belgium, Saudi Arabia, Syria, Jordan and Egypt also buy jute yarn and jute goods from Bangladesh.

"We exported nearly 140,000 tones of such fabric in Turkey in a year," mentioned the BJSA Chairman adding that if the recession continues they won't be able to achieve the target this year. "Bangladesh usually exports 350,000 to 380,000 tons of yarn a year and rest of the total global demand is met mainly by India," said the spinner.

Bangladesh Jute Association (BJA) chairman Mahfuzul Haque said the demand and price of raw jute have decreased recently in the overseas markets. He said international buyers have been offering low prices for jute amid price fall in the local market.

He said last year they sold per ton raw jute at $ 700. In the present fiscal, the price of the product is varying from $ 420 to $ 460 in international market. "The buyers have attributed the price fall of the product to Bangladesh media reports that raw jute price has decreased substantially in the country. So they are offering comparatively a lower price," said BJA chairman adding we have purchased the product at a higher price on the eve of the season.

Mr Haque mentioned that they bought per maund raw jute at Tk 1600 in the beginning of the season. "Presently the price of the golden fiber has fallen nearly 50 per cent in the local market as the millers have reduced the volume of purchase."

India, China and Pakistan are the major buyers of Bangladeshi raw jute. Vietnam, Ivory Coast, Malaysia, the Netherlands, Nepal, Bhutan, USA, Russia, and Thailand also import raw jute from the country.

Source: The Financial Express, Bangladesh, December 14, 2011

Sharp decline in Bangladesh jute export

KHULNA: Thousands of tonnes of raw jute remain unsold at warehouses of the exporters in this region due to drastic price fall in the international market as an impact of continuous global recession.

According to Export Promotion Bureau, raw jute and jute goods worth 16.3 million dollars and 0.96 million euros have been exported from this region in October of the current year. In November, raw jute worth 1.45 million dollars and 73 thousand euros has been exported to 14 countries. The countries are India, Pakistan, China, Belgium, Japan, Greece, Check Republic, Spain, Russia, Egypt, Italy, United Kingdom, Netherlands and Bulgaria.

Source said that 2 lakh 75 thousand metric tones raw jute worth about 164.7 million dollars have remained unsold in different warehouses only in Daulatpur of Khulna. The businessmen have stockpiled the raw jute to avoid loss. Sources said export of jute goods have fallen in the overseas markets.

In this situation the businessmen urged the concerned authority for searching new market of jute, reduce of bank interest and also compensation in this sector.

Source: The Financial Express, Bangladesh, December 26 2011

Jute export of India touch all-time high

Exports of jute from India touched an all-time high of Rs 1,854 crore during 2010-11, more than doubling from the Rs 859 crore recorded in 2009-10. The National Jute Board attributes this growth to good promotion and pricing, besides product innovation.

The primary objective of the National Jute Board, supported by its branch offices in Chennai, New Delhi and Hyderabad, is to engage in better marketing and sale of jute.

As part of its activities, a special advanced training on ‘Design and Product Development of Jute bags' will be held in Chennai from December 16-23. This is being funded the International Jute

Study Group, with the support of the National Centre for Design and Product Development. Over 30 participants from Chennai, Madurai, Coimbatore and Bangalore will participate in this programme, says Mr T. Ayyappan, Market Promotion Officer, Southern region, National Jute Board.

Recently, a marketing training program for jute entrepreneurs was organized in Madurai by the Small Industries Product Promotion Organization along with Madurai Productivity Council and sponsored by National Jute Board.

The program trained potential entrepreneurs and self-help groups in marketing, sales and selling techniques, time management, innovation, IT, VAT, crisis management and packaging. Participants were from Virudhunagar, Dindigul, Sivakasi, Madurai and Sivagangai.

Source: The Hindu, Business Line, India, December 08, 2011

Jute goods sell well at Dhaka International Trade Fare

The pavilion of Jute Diversification Promotion Centre has witnessed an upward trend in sales at the Dhaka International Trade Fair (DITF). "We are satisfied over the sales at the fair" proprietor of Golden Jute Product Mohammad Hakim told the FE. He produces the products at his factory at Sreepur in Rajbari.

The promotion centre has been displaying jute products including jute rugs, runner, costar, place mat, floor mat, table mat, table runner, basket, hat within price range between Tk 25 to 1,000. Several foreign customers were seen purchasing jute products from this stall.

The Ministry of Textiles and Jute has booked the pavilion to provide opportunity to the sellers and manufacturers of jute products to promote their innovative products at DITF.

'Demand for jute products is quite high in local market. But the customers expect such goods at cheaper rates,' Mr Hakim said adding that the price of jute is too high. So, it is not possible to sell produce jute products at lower prices.

Mahburur Rahman, an employee of another jute product manufacturer Gono Unnayon Sangstha, said they are selling jute bags and home appliances at the fair made in their factory at Modhupur in Tangail.

"We are not only operating business but also creating job opportunities for women and encouraging them to be self-sufficient,' he said. Ahmed Ullah, a service holder, said he came to Centre pavilion to buy bags for his younger sisters. "I bought two bags for my sisters and I am pleased with the quality of the bags," he said.

Source: The Financial Express, BangladeshJanuary 29 2012

News to support the argument

Africa keen to import jute bags from BangladeshSource: Daily Sun, Bangladesh, January 25, 2012

Thailand to import 4.0m pieces of jute bags from BangladeshSource: The Financial Express, Bangladesh January 21, 2012

Bangladesh Govt releases Tk 11b aid for jute and major export productsSource: The Financial Express, Bangladesh, January 19, 2012

Jute mills can raise productivity by 10pc thru' upgrading machinery: StudySource: The Financial Express, Bangladesh, January 17, 2012

Export Trading Group Interested to Import Jute Bags From BangladeshJanuary 28, 2012

Export Trading Group (ETG), a Tanzania- based African export trade body, today proposed to import jute bags from Bangladesh.

The proposal came when an ETG delegation met Industries Minister Dilip Barua at his office here.

Mahesh Patel of the ETG led the delegation. Myanmar Country head of ETG Sanjay P Jain was present, among others, said an official handout.

The ETG also expressed keen interest to export urea fertilizer under government-to-government system.

During the meeting, various issues including strengthening the agricultural and commercial relations among Bangladesh and African countries for mutual benefits.

Contractual agriculture production in African lands by Bangladeshi entrepreneurs also came up for discussion.

Speaking on the occasion, Barua called upon the ETG representatives to invest in IT, readymade garment (RMG) and chemical fertilizer and explore other investment opportunities.

Jute diversified product manufacturing unit to be set up in Mongla EPZDecember 16, 2011

A jute diversified products manufacturing industry will be set up in Mongla Export Procession Zone at a cost of US$ 36.94 million.

Rupsha Jute Diversification Limited, a fully Bangladesh owned company, signed an agreement with Bangladesh Export Processing Zones Authority (BEPZA) today for setting up the industry.

BEPZA general manager (Investment Promotion) A.Z.M. Azizur Rahman and managing director of Rupsha Jute Diversification Limited Major (retd) Md. Modasser Hossain signed the agreement on behalf of their respective organizations, a BEPZA press release said.

The industrial unit is expected to create employment opportunity for 2,052 people.

Significant rise in raw jute consumption and employment in Bangladesh Raw jute consumption and employment increased significantly in last three years parallel to export by the jute industries, industry insiders said.

Raw jute consumption by Bangladesh Jute Mills Corporation (BJMC), Bangladesh Jute Spinners Association (BJSA) and Bangladesh Jute Mills Association (BJMA) combined increased by more than 10.70 per cent between fiscal year (FY) 2008-09 and FY 2010-11 while employment increased by 25 per cent during the same period, industry data revealed.

The data showed jute consumption reached 4.058 million bales (1 bale = 180 kg) in FY 2010-11 from 3.665 million bales in FY 2008-09 and employment reached 0.179 million from 0.143 million during the time. The state-run 18 mills under BJMC showed tremendous performance by waking up from long coma and fetching a net profit of Tk 190 million in FY '11.

Raw jute consumption by BJMC mills increased by 59 per cent to 0.987 million bales in FY 2010-11 from 0.62 million bales in FY 2008-09, BJMC officials said. BJMC Chairman Tulsi Das Mitra said three more mills were waiting to be opened again which would increase the raw jute use significantly in the near future. He said the corporation opened Khalishpur Jute Mill (formerly People's Jute Mill) and Jatyio Jute Mill (formerly Kawmi Jute Mill) which employed 7,059 people.

Director (research and control) of BJMC Abu Sayeed told the FE that BJMC mills have now nearly 60,000 workers and officials. He said that employment increased by 100 per cent in FY '11 compared to FY '09 when it was nearly 30,000.

According to the Department of Jute (DoJ), the export of BJMC mills increased by 121 per cent to Tk 9.385 billion in FY '11 from Tk 4.331 billion in the FY '09.

BJSA, the major export earners of jute products, also maintained its firm growth during the time by consuming 2.3 million bales of raw jute in FY '11. Jute use by the association increased by 9.52 per cent in FY '11 compared to that of FY '09 when it was 2.1 million tonnes, BJSA data revealed. BJSA Chairman Muhammad Shams-uz Zoha told the FE that jute spinning mills have now employed nearly 60,000 people in its 81 mills.

Employment by Bangladesh Jute Mills Association (BJMA) increased by 5 per cent to 59,590 in FY '11 compared to that of FY '09 when it was 56,726. But, BJMA jute consumption declined to

0.771 million bales in FY '11 from 0.94 million bales in FY '09, BJMA data revealed. Export by the 92 BJMA mills also witnessed ups and downs during the time. The export reached Tk 11.36 billion in FY '10 from Tk 8.76 billion in FY '09, but fell to Tk 8.21 in FY '11, BJMA data showed.

A demand squeeze amid political turmoil in the Middle-East and North-African states and debt crisis in eurozone countries caused a fall in the export volume of jute products recently, sector insiders said.

The sector leaders said that the government should implement the Mandatory Jute Packaging Act 2010 to increase local consumption of jute products to 50 per cent from the present 10 per cent. They said that the local consumption will give the industry opportunity to bargain for higher prices to the foreign buyers and it could also work as a shield against the ups and down in the international market.

Source: The Financial Express, Bangladesh, December 06, 2011