There are several problems in the jute industry in Bangladesh.

Some of these are discussed below: At present, there are about 200 jute mills in the private sector. Janata Jute Mills Ltd. and Akij Jute Mills Ltd. are the two largest private jute mills in this country. All the jute mills of Bangladesh are mainly spread into three regions — Dhaka, Chittagong, and Khulna.

Jute industry in Bangladesh has been facing various problems over the years:

  • Increase in production costs but the decline in export prices.
  • Decreased production efficiency as the machinery became older.
  • Irresistible and widespread corruption.
  • Absenteeism and issues with labor unions.
  • Accumulation of huge operational losses due to mismanagement.

In July 2020, the government of Bangladesh has announced to shut down all 25 state-owned jute mills due to huge amounts of recurring losses year after year. From 2010 to 2019, the Government has given about 7.5 billion takas to BJMC but it has not been able to turn profits. The corporation has been experiencing losses every year since 1980 with the exception of the 2010-11 fiscal year. Although a number of private jute mills have made substantial profits.

Present Situation of Jute Industry in Bangladesh

At present Bangladesh is the second-largest producer of jute, (India being the first). But Bangladesh produces the finest quality jute fiber. Globally jute is now one of the most important natural fibers because of being biodegradable and compostable. So as an eco-friendly natural product, the potential of jute and jute goods is increasing day by day. Traditionally the jute grown in this country is used to make hessian fabric, jute carpets, sacks, ropes, and twines. Due to increasing global demand, Bangladeshi manufacturers and exporters are now focusing on diversified jute products. Also, the government’s ban on production, sale, and use of polythene in 2002 and making it mandatory to pack rice, sugar, wheat, and fertilizers in jute bags in 2010 by the government have encouraged producers to expand the sector of jute-goods.

Prospects of Jute Industry in Bangladesh
About 4 million farmers cultivated Over 8 lakh hectares of jute and jute crops are in Bangladesh. According to BJMC, government jute mills used to buy an average of 13 lakh bales of jute a year. Around 50-55 lakh bales of produced jute are used in private sector jute mills. According to Export Promotion Bureau (EPB), every year an average of 20 lakh bales of raw jute exported till 2012-13; but now it has come down to 7-8 lakh bales. However, exports of jute-products have increased significantly.
The jute industry has played an important role in the national economy at different times despite facing several problems. The jute sector contributes 0.26 percent to GDP and 1.4 percent to agriculture GDP. In the 2017-18 fiscal years, Bangladesh earned the US $1.02 billion from this sector. Though in the fiscal year 2018-19, the export earnings were US $816.3 million. Again, Export earnings from jute and jute products increased by 8.10 percent to the US $882.35 million in the fiscal year 2019-20. Even in the corona-epidemic, the jute sector has demonstrated positive growth compared to other export sectors throughout the fiscal.

Uses of Jute & Jute Products
Jute fiber’s primary use is in fabrics for packaging a wide range of agricultural and industrial commodities that require bags, sacks, packs, and wrappings. Wherever bulky, strong fabrics and twines resistant to stretching are required, jute is widely used because of its low cost. Burlap is made from jute.
Jute is a versatile fiber. During the Industrial Revolution, jute yarn largely replaced flax and hemp fibers in sackcloth. Today, sacking still makes up the bulk of manufactured jute products. A key feature of jute is its ability to be used either independently or blended with a range of other fibers and materials. While jute is being replaced by synthetic materials in many of these uses, some take advantage of jute’s biodegradable nature, where synthetics would be unsuitable. Examples of such uses include containers for planting young trees, geo-textiles for soil and erosion control where application is designed to break down after sometime and no removal required.
Advantages of jute include good insulating and anti static properties, as well as having low thermal conductivity and moderate moisture retention.

Textiles
The major manufactured products from jute fibers are:
Yarn and twine, sacking, hessian, carpet backing cloth and as well as for other textile blends. It has high tensile strength, low extensibility, and ensures better breath ability of fabrics. The fibers are woven into curtains, chair coverings, carpets and area rugs and are also often blended with other fibers, both synthetic and natural. The finest threads can be separated out and made into imitation silk. Jute can also be blended with wool. By treating jute with caustic soda, crimp, softness, pliability, and appearance is improved, aiding in its ability to be spun with wool.

Packaging
Jute is extensively used for sacking for agriculture goods as well as being used increasingly in rigid packaging and reinforced plastic and is replacing wood in pulp and paper.

By-products
Diversified by-products from jute include its use in cosmetics, medicine, paints, and other products. Jute sticks are used as fueling and fencing materials in the rural areas of jute producing countries. These are good substitute for forest wood and bamboo for production of particle boards, pulp and paper.

Producers
Jute is a product of South Asia and specifically a product of India and Bangladesh. About 95% of world jute is grown in these two south Asian countries. Nepal and Myanmar also produce a small amount of jute. Pakistan, although it does not produce much, imports a substantial amount of raw jute, mainly from Bangladesh, for processing.

Production and trade
Jute production fluctuates, influenced by weather conditions and prices. Annual output in the last decade ranges from 2.5 to 3.2 million tones, on a par with wool. India and Bangladesh account for about 60% and 30%, respectively, of the world’s production. Bangladesh exports nearly 40% as raw fiber, and about 50% as manufactured items. India exports nearly 200 000 tones of jute products, the remainder being consumed domestically.

Jute Developments
Several projects are being carried out in Bangladesh by the Common Fund for Commodities (CFC) to improve the capacity of jute producers and support industry diversification.

Jute Reinforced Polyolefin for Industrial Applications, Phase II: Material Optimization and Process Up-Scaling for Commercialization
The project aims at developing and industrially testing jute fiber reinforced thermoplastic composites for various uses to replace glass fiber and other products. Materials optimization and process up-scaling is expected to promote investment and greater use of jute fiber in various industries thereby opening up new market niches for jute fiber.
Entrepreneurship Development in Diversified Jute Products
The project involves poor women and other rural and urban unemployed and underemployed: hence significant alleviation of poverty is expected from the project. The project pilots the application of new physico-chemical treatments for jute dyeing, bleaching and proofing, and the integrated production of value-added jute blended products through small-scale spinning and weaving employing small-scale hand looms and power looms and the manufacturing of home textiles. Model chemical treatment plants in India and Bangladesh are used to demonstrate the treatment of chemical effluent to minimize the polluting effects of dyes and other chemical applications.
Other projects have been commissioned to examine the markets for geo-textile applications and projects to improve efficiency of production for various jute uses. Together these projects build capacity in jute processing and help position the fiber more strongly on international markets and increase awareness of the fibers potential.