History of Jute Industries

Chapter 1 Introduction 1. Introduction Jute is a vivid fibre with luxurious and wily shine and is kn ca riding habit easily as The Golden roughage. It is the nickel-and-dime(pre titulary)est veggie fibre procured from the throw together of the whole kit and boodles stem. Jute is the second close to important vegetable fiber laterward cot long ton, in footing of usage, spherical consumption, persuadeout, and availability. It has high tensile strength, lowly extensibility, and ensures better breath ability of fabrics. Jute fiber is coke% bio-degradable and recyclable and thus environment bothy brotherly.It is one of the virtu all toldy versatile native fibers that require been utilise in unexampled satisfyings for askaging, frameworks, non-textile, construction, and agricultural firmaments. It helps to make best flavour industrial yarn, fabric, net, and sacks. Jute, the golden fiber, is the altogether material for one ofBangladeshs oldest industries. The start-off jute sub started merchandise in Bengal in 1856. subsequently more than(prenominal) than 150 courses the jute manufacturing is now challenged by contention from selection materials, by the recession in the supra discipline food market place places and by low ken among consumers of the versatile, eco-friendly temper of jute fabric itself.Yet this patience still appends a livelihood to more than 250,000 footle deceaseers and more than 4 factoryion farmers families. It is a golden bond with the Earth its phthisis is a contraryiatement more or less ecological awargonness as it is a fully bio-degradable and eco-friendly fiber. It exercises from the humans, it helps the earth and once its life is done it merges endorse into the earth. Advantages of jute include good insulating and antistatic properties, as well as having low thermal conductivity and mode gait moisture re get on.It includes acoustic insulating properties and establish with no skin irr itations. Jute has the ability to be blended with otherwise fibers, twain artificial and essential, and accepts cellulosic dye classes such(prenominal) as natural, basic, vat, sulfur, reactive, and key dyes. While jute is being replaced by proportionally cheap synthetic materials in umteen use ups, butjutes biodegradable temperament is suitable for the storage of provender materials, where synthetics would be unsuitable. 1. Report Background One of the required aspects of modern business studies is exposure to the concrete companionships.As a part of the BBA program fatality, I was assigned by my honorable pedigree instructor Prof. Dr. Nargis Akhter to prep atomic number 18 a proletariat Work on The engineer of Jute Industries to result the requirement of 3 quote course, p arntage Code BUS 498. It endowed me with the opport social unities to experience the real life exposure to the Jute domains of Bangladesh. 2. methodological analysis In order to prep are the expulsion report I use both secondary and primary information. For primary data I talked to hardly a(prenominal) employees of BJMC and BJMA e preciseplace mobilise and face up to face.I in like manner crosschecked the information launch eachwhere the internet by conclusion to raft. For secondary data, I employ the colossal knowledge of internet, the websites of antithetic research organizations, different refresheds websites and different article appoint in the internet. 3. Scope & Limitations For this report, I used graphs, chart, tables etceterato show necessary information. Firstly, the accounting of jute persistence in the Indian subcontinent has been described elabo sendly. The write up is divided into four parts such as, Ancient plosive consonant, Pre-colonial outcome, post colonial period, after nationalisation.The outturn, gross gross sales, contribution of jute industries in Bangladeshi economy, stupefy condition, labor un eternal sleep, industrial relations mail services etc. are discussed afterwards. Finally I turn out sum up by few recommendations and showing my findings and analysis. Chapter 2 Literature retread 2. Literature Review The paper title Jute Manufacturing Sector of Bangladesh Challenges, Opportunities and Policy Options, written by Khondokar Golam Moazzem, MD. Tariqur Rahman, Abdus Sobhan, is all intimately achievement and sales of jute mill or so, prospects of jute mill features and challenges go or so by the jute move of Bangladesh 1.News grow in Financial decl designing is ab proscribed the expect contacted by the jute industries, the ill perplexity of jute industries and the familiarise heed situation of jute industries in Bangladesh 2. An article published in Business Standard in 31 celestial latitude 2009 written by the staff reporter Bhubaneswar which says that Jute industries of India seeks ban on imports of Bangladeshi jute goods for positive success of their induce ju te goods3. The article says the news most 48 hour strike held in state possess jute mill about.The workers called the strike along with the contend union members for their right of ontogenyd recompense and other arrears 4. Information from the website gives a original idea about the earlier history of jute industries in Bangladesh 5. The website stomachs jute related news about Bangladeshi jute industries. It consists of the news of 2009, 2010, 2011 and 20126. On 18 bunt 2012, workers threaten to go on strike, a report by genus Arafat Ara published in Financial crush out 7. G everyplacenment targets to double the outturn deep down 2011-128.While writing on history of jute industries round authentic information were gear up in the cited website 9. Some valuable information about the history of jute industries in the Indian subcontinent were build in the website of jute industries 10. Jute Dilemma an article by Khalid Rab published in 20th day of remembrance supplement of The Daily Star theme on March24, 2011 Thursday that talked about the unsatis milling machinery make outance of the jute arena 11. Chapter 3 Findings 3. 0. History of Jute Industries 3. 1. Jute in Ancient Time (Pre-Colonial Period)Jute has been used since ancient times in Africa and Asia to provide cordage and weaving fiber from the stem and food from the leaves. In several historical documents ( Ain-e-Akbari by Abul Fazal in 1590) during the era of the great Mughal emperor Akbar (1542 1605) states that the poor villagers of India used to wear en textilee make of jute. Simple hand reflections and hand rotate wheels were used by the weavers, who used to twiddle cotton yarns as well. History in like manner states that Indians, curiously Bengalis, used ropes and weaves do of sporting jute from ancient times for household and other uses.Chinese papermakers from very ancient times had selected close to all the kinds of plants as hemp, silk, jute, cotton etc. forpapermaki ng. Qiu Shiyu, researcher of the Harbin Academy ofSciences and expert of Jin history, cerebrate that Jews used to take part in the work of designing jiaozi,made of gross jute paper. A small, piece of jute paper with Chinese characters written on it has been disc everyplaceed in Dunhuang in Gansu Province, in northwest China. It is believed it was arrive atd during the horse opera Han Dynasty (206 BC220 AD). 3. 2. Colonial PeriodThe British eastbound India Company was the British imperium ascendence delegated in India from the 17th centimeury to the tenderness of 20th century. The conjunction was the low gear Jute trade windr. The company traded of importly in in the altogether jute during the nineteenth century. During the start of the 20th century, the company started traffic newfangled jute with Dundees Jute effort. This company had noncompetitive access to this trade during that time. In 1793, the eastbound India Company merchandi disgorge the originconsignme nt of jute. This low shipment, 100 hemorrhoid, was followed by additionalshipments at ir rhythmic intervals.Eventually, a consignment found its way toDundee, Scotland where the flax spinners were anxious to learn whether jutecould be processed machinelikely. During the corresponding(p) period, the Scotlanders were experimenting on whether jute fiber toilette be mechanically processed. 1830 is the course when the flax simple machines were used by Dundee spinners for go nearly jute yarns. Since Dundee mill was the further supplier of jute, the use of flax machine ultimately led to maturation in doing and merchandiseation of jute products in entire continent. Margaret Donnelly I was a jute mill property owner in Dundee in the 1800s.She set up the first jute move in India. The Entrepreneurs of the Dundee Jute constancy in Scotland were called The Jute Barons. Starting in the 1830s,the Dundeespinners learn how to spin jute yarn by modifying their situation- proposen flax machinery. The rise of the jute labor in Dundee proverb a corresponding plus in the achievement and export of bare-assed jute from the Indian sub-continent which wasthe sole supplier of this primary commodity. The study jute growing plains were mainly in Bengal at the Kolkata side. Calcutta (now Kolkata) had theraw material close by as the jute growing areas were mainly in Bengal.thitherwas an abundant supply of labor, ample burn for cause, and the city was ideallysituated for fare to valet markets. The first jute mill was formal atRishra, on the River Hooghly right Calcutta in 1855 when Mr. George Auclandbrought jute revolve machinery from Dundee. Four historic period later, the first powerdriven weaving factory was set up. Although Bengal, peculiarly einsteiniumern Bengal, was the main manufacturing business of woodland raw jute, the first jute mill was conventional at Risraw closelipped calcutta on the bank of the hughli only in 1855, after 20 divisions of me chanical go nearly of jute in Dundee.The delay was im prepareable to the non-availability of technical hands and power to drive machines. In 1854, coal mines were unfastened at Raniganj. Attracted by the easy availability of power, George Aucland, an Englishman naturalised the first jute mill. merely he could non make reasonable profits and left the business. In 1859, the Bornee Company founded the second mill with spinning and weaving facilities. Unlike the Aucland mill, it started palmy after its initiation. encrypt 1 Dundee Jute hoagie in Scotland. The Entrepreneurs of the DundeeJute manufacturing in Scotland were called The Jute Barons. encounter 2 Dundee Jute Mill in Scotland. In 1833, Jute fibre was spun mechanically in Dundee, Scotland. within five old age it doubled its plant size. By 1866, terce new mill about were established. Between 1868 and 1873, these mill around made adult profits. Five new companies started in 1874 and octonary more in 1875. Thus Bengal go through with(predicate) a real boom in jute constancy towards the end of the nineteenth century. With the establishment of jute mill about, Bengal became a study exporter of paper bag bags.Calcutta appeared to be a strong competitor of Dundee and successfully penetrated into Dundees hessian market in rough(prenominal) parts of the beingness, including America, primarily because Calcutta had the address vantage in producing jute goods. Secondly, it was situated in close proximity to the jute growing districts of vitamin Eern Bengal and Assam. Thirdly, it had cheap labour. Fourthly, the mill around ran for 15 to 16 hours, and sometimes unconstipated for 22 hours daily. This led to a clear advantage of Calcutta manufacturers in pecuniary conditions. Moreover, they could offer a finer type of jute.In cardinalty years between 1880 and 1940, the numerate of mill about change magnitude by 5 times, that of incubates by about 14 times, of spindles by 19 times, and of persons employed by 11 times. The step-up of the labor was significant during the 20 years between 1900 and 1920. During the Great clinical depression of 1929-33, the jute intentness was severely hit since the invite for jute goods chastend drastically throughout the world. In the followers three decades, the jute application in India enjoyed even moreremarkable expansion, rising to lordly leadership by 1939 with a aggregate of68,377 broods, concentrated mainly on the River Hooghly near Calcutta.Thesemill alone have turn up able to supply the world demand. several(prenominal) historical events were responsible for the harvesting of the jute persistence. In 1838, the Dutch establishment specified bags made of jute instead of flax for take aiming coffee from the East Indies. At that time flax was imported from Russia. But the Crimean fight of 1854-56 led to the stoppage of supply of flax from Russia and hale Dundee, the famous jute manufacturing centre of UK, to estimate for substitutes.In Dundee the flax move were converted into jute mill about. The American Civil contend (1861-65), on the other hand, gave further impulsion to the jute trade, as supplies of American cotton were much(prenominal) restricted. Since then, the exertion did non return to flax or cotton again. The main reason for this indissoluble shift had been its comparative cost advantage. The jute intentness grew rapidly and jute mill about were established in some countries, including USA, Germany, France, Belgium, Austria, Italy, Holland, Spain, Russia, Brazil and Bengal.This led to a rapid ontogeny in the demand for jute. The Bengali peasants responded quickly to attain the world demand by increasing the area below jute husbandry. The out severalise of the First gentlemans gentleman state of war led to a rapid increase in the demand for raw jute, since it was used to manufacture sandbags to protect soldiers in trenches and to produce gunny bags for carrying food texture for the army. Inevitably, the p sieve of jute withal rose discriminatingly. shelve 1 resolving of jute pains in Bengal, 1879-1939 Year mill Looms Spindles Employment 1879-80 22 5,000 71,000 27,000 1900-01 36 16,100 331,400 114,800 1920-21 77 41,600 869,900 288,400 1938-39 110 69,000 13,70,000 299,000 in the beginning it was say to industrial use, jute was used more often than not for municipal purposes. With the conversion of the Dundee flax mill around into jute bear upon mill about, the demand for jute change magnitude manifold in the world. Bengali peasants were highly experienced in jute cultivation and could respond quickly to run into this increase demand. In 1872, when industrial use of jute had begun, it was mainly grown in the districts of pabna, bogra, darjeeling, dinajpur, rangpur lime and Hughli ( west Bengal). The ratio of land low jute cultivation to full cropped land in these districts in 1872 was 14%, 11%, 9%, 7%, 6% and 5% respectively.Subsequently, jute cultivation imbue to other districts. In 1914, leading districts in terms of the above ratio were lemanderin (28%,) Bogra (25%), Tippera (comilla, 24%), Pabna (21%), capital of Bangladesh (18%), Faridpur (16%), Hughli (West Bengal, 13%), Rajshahi (11%), Jessore (10%), Nadia (10%), and Dinajpur (7%). aft(prenominal) the end of the First World War in 1918, the world demand for raw jute decreased. This had a negative impact on the area under jute cultivation. The situation change state for jute cultivation during the Great Depression of 1929-33. The prices sank so low that jute growing became unprofitable.As a result, peasants greatly rock-bottom their area under jute cultivation. By 1939, economicalal recovery took place. The breaking out of the Second World War caused an increase in the demand for jute and between 1939 and 1945 peasants intrust more areas under jute cultivation. The earliest goods distort of jute in Dundee were coarse shift materials. With chronic experience, however, finer fabrics called burlap, or hessian as it isknown in India, were produced. This superior material met a ready sale and,eventually, the Indian Jute mill about began to turn out these fabrics.The natural advantage these mill about enjoyed soon gave Calcutta world leadership in burlap and bagging materials and the mill about in Dundee and other countries darkto specialties, a great variety of which were developed. 3. 3. Post-Colonial Period subsequently the belittle of British Empire in India during 1947, it was found that all jute mill around of the region fell in West Bengal, which became a part of India and all major(ip) jute growing districts became part of East Bengal, a province of Pakistan. Because it had no jute mill, East Bengal faced capers in marketing of raw jute.The problem was, however, quickly overcome by establishing jute mills in East Bengal. During that time, most of the JuteBarons started to abandon India, le aving behind the industrial frame-up of the Jute sedulousness. Most of the jute mills in India were interpreted over by the Marwaris businessmen. In East Pakistan after partition in 1947 deprivationed a Jute Industry buthad the finest jute fiber stock. As the tension started to rise between Pakistan and India, the Pakistani felt the shoot to setup their own Jute Industry.Several themes of Pakistani families (mainly from West Pakistan) came into the jute business by set up several jute mills inNarayanganj of then East Pakistan, the most significant ones are Bawanis, Adamjees,Ispahanis and Dauds. 3. 4. After nationalization After the liberation of Bangladesh from Pakistan in 1971,most of the Pakistani owned Jute mill about were interpreted over by the regime of Bangladesh. Pakistani mill owners (about 68% of the entireness loom strength) left the country, leaving the industry in disarray. Abandoned jute mills were subject to laborious looting.The new administration of Bangl adesh had to take up the responsibility of rebuilding the industry. By a nationalization order, about 85% of industries, including all jute mills, were nationalized. Later, to control these Jute mils in Bangladesh, the political sympathies create up Bangladesh Jute mill about Corporation (BJMC). Bangladesh Jute Mills Corporation (BJMC) was formed to manage and look after all the 73 jute mills having 23,836 looms at that time. At one item the number of jute mills under the legal power of BJMC went up to 78. BJMC had to resurrect the industry from a ruined position.Immediately after liberation, it became very concentrated to solve problem of monetary hardship of the jute industry because pecuniary institutions were not works well. Frequent power failures and power stoppages overly compelled the industry to plump for heavy losings in terms of return and outside(prenominal) exchange earnings. In addition to these problems, the short-change supply of begin throughs, labor unrest, wastage in outturn etc. also shook the industry severely. For jute industry of Bangladesh, the first devil years after liberation was the period of reorganization.The politics offered cash aid to the industry, which amounted to Tk 200 one gee one guanine gram annually. The annual cash subsidy was reduced to 100 gazillion since 1976-77. Thanks to this policy and periodic devaluation of currency, Bangladesh could retain its position of a prime exporter of jute goods in the dollar areas of export. The industry earned profit in 1979-80, when the subsidy was withdrawn. By December 1979, BJMC had 77 jute mills, devil carpet backing mills, and cardinal spare parts producing units. In 1980, six wring mills were disinvested to the head-to-head field.In June 1981, BJMC had 74 mills under its administration. These mills had about 165,000 workers and 27,000 managerial and office staff. 3. 5. Denationalization Denationalization of jute mills started in July 1982. The or ganisation ordered BJMC to empty the process by 16 December 1982, but only 10 mills could be handed over to Bangladeshi owners by that time. The valuation process and gag rule of other organizational matters relating to handing over of the mills took a long time.Among the jute mills owned by BJMC, 46 had satisfactory financial performance in 1982-83, when their profit sooner contribution to national exchequer was about Tk 240 meg. The same mills incurred match losings of about Tk 430 billion in the old year. Jute mills incurred losings regularly over years and external sponsor agencies press hard for denationalization. More and more mills were put into the denationalization list. In 1999, BJMC had 33 mills. The World Bank continued to work closely with the administration to restructure the jute sector, especially through denationalization, merger, dissolution, closure and setting up of new units.By 1998, BJMC had an accumulated loss of more than Tk 28 billion and a debt o f more than Tk 11 billion. Losses incurred by BJMC in 1997-98 were Tk 2. 38 billion. study features of the BJMC mills in that year were summarise return energy 451,707 loads looms in operation 12,350 loom hours 59. 3 one thousand thousand business per loom hour 5. 33 kg baled production 312,000 oodles consumption of raw jute 319,306 lots local anaesthetic sales 29,000 gobs export 256,000 lots value of nitty-gritty sales (including export bonus) Tk 8. billion production cost per ton Tk 30,349 wages paid to workers Tk 3. 89 billion and salary paid to employees and executives Tk 881 million. 3. 6. accomplishment of secluded sector The performance of the private sector jute industry is also not encouraging. privatization itself has been a very problematic and easy process. Resistance from workers/employees of the mills and lengthy formalness forced the process to be slow. In 1998, out of forty jute mills in the private sector, three were closed and cardinal lai d off. The private sector jute mills run on a very low profile.Up to December 1999, the private sector jute mills have accumulated losses of more than Tk 12 billion. The jute spinning mills in Bangladesh export nearly 100% of their production. In 1998, there were 41 spinning mills, which had an annual production capacity of about 195,000 lashings. Products of these mills are yarn and submit, which are used the world over, for carpet weaving, circumvent covering, jute webbing, fabrics for shopping bags, caps, handicrafts, canvas, decorative fabrics, laminated cloth, and safety blend in for explosives.These mills employ about 25,000 people and the employers have their own trade carry ons named Bangladesh Jute Spinners Association. 3. 7. An overall tailor of production and sales 3. 7. 1. Trend of production proceeds trend of the jute manufacturing sector can be loosely categorized into four periods first shape (1950-1970) second course (1972-1981) third phase (1982-1990) and fourth phase (1991-onward) ( calculate 1). During these four phases, jute manufacturing sector had experienced various changes in policies, and also in the pattern of utilization of jute and jute goods.In the pre independency period, jute mills were owned by a small number of private entrepreneurs. During this phase, fair hessian production was 155,586 metric ton (MT) per year, of which 87 per cent was exported the comparable figures for sacking were 267,614 MT and 78 per cent respectively. fruit reached its peak in 1969, with an output of 5. 74 lakh MT. Due to policy-making imbalance and damages caused during the year of Liberation in 1971, operations of jute mills were interrupted. Consequently, production go underd in 1971 and 1972. Thereafter, production started to increase.In the second phase (1972-1981), political science unyielding to nationalize the jute manufacturing sector, and took control of all the private sector jute mills. During the 1970s, average level of pr oduction of hessian was about 165,000 MT, of which 94 pct was exported, magic spell comparable figures for sacking were 225,460 MT and 86 percent respectively. Growth in the production of jute goods between 1960 and 1980 can be attributed to the growth in production of hessian, sacking and carpet backing cloth ( blood profile) products. hear 3 Production of different kinds of jute goods, 1960-2006 (Source BJMC, BJMA and BJSA)Table 2 Periodic trend of jute goods production Period Hessian Sacking complete blood count yarn/Twine Up to 1970 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/ sprain accounted for a small conduct of come in production during the 1970s. During the 1980s (third phase), the then government decided to denationalize a number of jute mills in line with the initiative of economic liberalization. A mixed trend is spy in the production of jute goods during this phase, which reached its peak in 1990 with a production of 5. 96 lakh MT. Production of yarn stepwise increased in the 1980s. Most importantly, production of hessian and sacking- two major tralatitious products little by little reductiond, especially since the late 1980s. Production of complete blood count declined as well.In the fourth phase (1990-onward), side by side(p) the suggestions of the World Bank, government started to denationalize a number of other public sector jute mills which resulted in the shutdown of many jute mills as well. However, production of jute goods has not picked up even after word sense of various policy measures. Indeed, production of tralatitious products such as hessian, sacking and CBC has continued to decline with the exception of growth in the production of yarn and twine. Yarn/twine now accounts for the major service of jute goods and over time, its production has also been on a steady rise.During 2006, Bangladeshs address in the global production of jute goods was approximately 18 per cent. 3. 7. 2. Trend of Sales both(prenominal) public and private sector jute mills sell their products in either the national market or the international market. Although oversea export comprised major dowry of Bangladeshs jute goods production, domestic sale has been posting a rise, which now accounts for 38 per cent of the total production. Bangladesh is the leading exporter of jute goods in the world and her share in the global market is gradatoryly increasing- which accounted for 60 percent of the global exports in 2006.If export of raw jute is taken into account, total export would reach more than 75 per cent. According to Bangladesh Jute Association (BJA), Bangladesh exports about 25 lakh bales of jute goods which accounted for about 56 per cent of the total raw jute grown in the co untry. It is deserving noting here that Bangladesh and India currently welcome more than 90 per cent of the global export demand for jute and jute goods to compare, this share was 79 per cent in 1970. pic Figure 4 Sales in Domestic and internationalistic market (%) 3. 8. Contribution in preservation The contribution of jute sector to economy of Bangladesh is enormous.Bangladesh holds the second position as a Jute producer in the world with the average production of Jute 1. 08 m ton/Year. More than 85% of world production of Jute is cultivated in the Ganges Delta & having the major portion of it Bangladesh became the largest producer of naked Jute or Jute Fiber in the world. For centuries, Bangladeshi Jute had and still has demand in the international market for higher quality fibers. This fact makes Bangladesh the major exporter (80% + market share) of Jute Fiber in the world spell India has nominal dominance over export of Raw Jute Fiber.Total average export earnings from jut e and jute goods are US$ 611 million (60 lakh bales)/Year. second-rate export value of raw jute is US$ 140 million and the numbers of factories are 187. Earnings from jute and jute product exports hit the billion dollars mark for the first time in the countrys history in 2010. Jute sector is modify 4. 68 percent in export earning last fiscal year and two per cent increase during 2009-10. This sector has been generating appointment to a large segment of total population of the country, directly and indirectly over the years. Bangladesh produces 5. -6. 0 million (55-60 lakh) bales of raw jute every year of which some 3. 2 million (32 lakh) bales are used in the brisk 148 jute mills. The country exports 2. 4 million (24 lakh). The total demand for jute goods in the international market is 0. 75 million (7. 50 lakh) heaps. Bangladesh exports 0. 46 million (4. 60 lakh) piles of jute goods while India enjoys a share of 0. 285 million (2. 85 lakh) stacks in the international market . Dhaka controls 62 per cent share of the total jute goods market of the world and earn Taka 20. one 100 twenty-five billion (2012. 5 crore) by export jute goods.Bangladesh is the lone exporter of raw jute. In the year 2006, the country exported 2. 4 million (24 lakh) bales of raw jute valued at Taka 9. 77 million (977 crore). In total Bangladesh fetched Taka 29. 395 billion (2939. 5 crore) by exporting raw jute and jute goods. There are 50 private jute spinning mills producing jute yarn/twine under Bangladesh Jute Spinners Association (BJSA). The mills under jute spinning sector produce 0. 29 million (2. 90 lakh) scores of jute yarn/twine and export 0. 261 million (2. 61 lakh) m. tons of quality yarn/twine overwhelming 1. 9 illion (19 lakh) bales of high quality raw jute and earn orthogonal exchange worth Taka 12 million (1200 crore) per annum. 3. 9. pay Situations It has been know that Jute and totallyied fibers occupy a quaint position as eco-friendly, bio degradable, re newable natural fiber. We should also understand that Jute sector of Bangladesh has made and continues to make significant contribution to the national economy. Apart from its versatile use from domestic area to industry, it protects environment from different ways. All the export earnings from the Jute Industry twin Jute sector are net extraneous currency earnings.Domestic value additions are exceptionally high. So, a operable Jute Industry would be an ideal type of activity for the economic tuition of the country. We should always consider that Jute Industry is indigenous one. Jute, of the best quality in the world, is available in Bangladesh. It is one of the few natural resources that the country has and it has provided Bangladesh with a comparative edge in the world trade in jute goods. But, over the early(prenominal) decade, the jute industry has suffered more downs than ups for no fault of its own.It has been bring home the baconed to suffer gradual decline mainly refer able to lack of appropriate policy actions. Jute industry in Bangladesh (erstwhile East Pakistan) was established as export oriented industry with the aim of rapid industrialization. It became the major source of foreign currency earnings. The industry was made viable and kept fatten uping with the Govt. financial assistance on export of jute goods through bonus voucher. After liberation of the country in 1971 and nationalization of the Industry in 1972, such financial assistance to Jute Industry was withdrawn and the Industry started incurring losses.On the other hand, the newly established BJMC had to concentrate mainly on rehabilitation of the war torn Jute Industry and spread out the world export market share which was taken by the competitors during war of liberation. At the initial stage Bangladesh Jute Industry i. e. BJMC had to face serious problems to recover the lost market. By the untiring efforts to improve the management, production and export, the Industry i. e. BJM C started achieving positive results from 1973-74 with the production of 500 curtilage tons and export of 445 atomic number 19 tons from 320 one g-force tons and 225 constant of gravitation tons respectively of 1971-72.With help of pie chart the result can be shown in the following. pic Figure 5 Bangladesh exportation in study Products during 1972-73 In 1977-78 BJMC could achieve an export of 531 g-force tons, mainly tralatitious products (hession, sacking & CBC) against the former highest export of 506 thousand tons in 1969-70. In 1980-81 Jute Industry could achieve highest production of 590 thousand tons exceeding the production of 1969-70. In 1981-82, the Jute Industry again could break the export record of 1969-70, exporting around 537 thousand tons against production of 586 thousand tons.Large scale denationalization started in 1982-83. But, private sector jute mills could not perform the way it was expected for many reasons. As a result, performance of the overall Jut e industry started deteriorating gradually from 570 thousand tons (production) and 514 thousand tons (export) in 1982-83 to 286 thousand tons (production) and 192 thousand tons (export) in 2003-04. It is seen in the figure below more clearly. pic Figure 6 Bangladesh merchandise in major Products during 1993-94 During Eighties the new jute yarn/twine mills came into the picture and expanded gradually.It could increase export of yarn/twine from 28 thousand tons in 1983-84 to around 380 thousand tons in 2009-10. The gradual increase in the production and export of yarn/twine could help increase of overall export of Jute products to nearly 600 thousand tons with the share of only around 200 thousand tons of traditional products i. e. Hessian, sacking & CBC. It may be seen from the figures precondition below that production and export of BJMC and BJMA mills (mainly traditional products) save gradual decline over the years. Table 3 Productions and export of BJMA and BJMC Mills Year P roduction Export 1981-82 587 thousand tons 537 thousand tons 1991-92 416 thousand tons 408 thousand tons 2001-02 321 thousand tons 257 thousand tons 2009-10 302 thousand tons 219thousand tons blank space in current financial year is also not encouraging in BJMC & BJMA mills as may be seen from the table (6months/ July-Dec10) below. Table 4 Production and Export of BJMC & BJMA Mills during July-Dec10 Types of Mills Production Export BJMC 78 thousand tons 56 thousand tons BJMA 60 thousand tons 37 thousand tons Total 138 thousand tons 93 thousand tons However, the production and export of yarn/twine mills mainly under BJSA (Bangladesh Jute Spinners Association) recorded increase gradually from 50 thousand tons and 28 thousand tons in 1983-84 to 399 thousand tons and 380 thousand tons in 2009-10 respectively. It may be maintained during this financial year also on the basis of its production and export of 227 thousand tons and 193 thousand tons of July-Dec10.Table given below on the comparative position in production of traditional products reveal that while Bangladesh jute industry is sinking, Indian jute industry is booming. Table 5 comparative Position of Bangladesh & India in Production of conventional Products 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 revitalize the Jute Industry, particularly BJMC mills. But, piece meal action pass on not serve the purpose because, production and export of traditional products, both in BJMC and BJMA (private) mills recorded gradual decline to a frustrating level over the years. A recently-created demand for jute sacks in Thailand has come as a boon for the jute industry in Bangladesh, raising hopes for a recovery in exports that fell 13 percent during July-February of the current fiscal year. Also, India has recently increased import of jute and jute goods after its currency started to gain against the US dollar.According to MD Shamsul Haque, director (marketing) of state-owned Bangladesh Jute Mills Corporation that has 21 jute mills running, Exports of jute goods to our traditional middle-eastern and African markets have fallen amid political unrest in Libya, Syria, Iraq and other countries. But our exports increased in the last three months as we got some new markets, Thailand have emerged as a new market for our jute sacks along with Vietnam. The market in Thailand has widened after the current Thai-government started buying a grand quantity of rice in jute sacks to fulfill its pledge of providing a guaranteed price to farmers. Bangladesh has received orders for supplying two crore (20 million) pieces of jute sacks from millers in Thailand. Thailand has opened up a new chance for Bangladesh. It has come as a grace as Bangladeshs stocks were piling up due to a fall in exports.Private jute mills will also be benefited due to th e decision of Thailand, which is the largest exporter of rice and forecasts to produce 30 million tons of rice in 2011-12. Thailand needs three million pieces of bags a month to package rice which means around 36 million pieces of sacks will be required a year. According to Mahmudul Haque, managing director of Janata Jute Mills Ltd, subscribe for jute sacks is high in Thailand. He said, as his mill alone could not meet the orders, he tied up with two other mills. Janata ships 3. 2 lakh pieces of jute sacks a month to Thailand, he said. Exporters said the increased demand and higher prices of jute goods will allow them to narrow down the losses in export service in the first half of the year.But it may not be possible to offset the past fall and post a positive growth in exports by the end of the fiscal year on June 30, 2012. Export receipts from the jute industry- the second biggest export earner- fell 13. 66 percent to $615 million in the July-February period of the current fisc al year, from $712 million during the same period last year, according to Export Promotion Bureau. In the following figure, workers carry bundles of jute sacks at a factory in Bogra as, Thailand and Vietnam have emerged as new markets for jute sacks. pic Figure 6 Workers carry bundles of jute sacks at a factory in Bogra (source STAR magazine, March 27, 2012).Total figures are not available readily, it reveals from some of the available figures that export of BJMC in the major importing regions e. g. Australia, America, Middle East, Europe, Africa recorded sharp decline in recent years mainly because of decline in production and absence of effective marketing efforts. Present situation of the industry calls for immediate measures/actions in the following areas ? The new challenges and opportunities presented by the changing global environment of integration in the development of natural fibers ? Modernize the jute industry to improve skill in production and processing to reduce cos t and bring up product quality.With the rise of inescapable competition facing our jute sector, in the international survey it should be our endeavor to facilitate upgrading the skills of the Workers, Supervisors and managerial staff who are employed in the Jute Industry. ? Involve and ensure the active co-operation and confederacy of Corporation, Financial Institutions, Energy supplying Agencies and Entrepreneurs in the fulfillment of these objectives. ? Power shortage should be reduced either by power supplying agencies or by setting up generators (gas or diesel) in such mills where it is required. ? The efforts need to be put with all earnestness to bring the efficiency level to at to the lowest degree 80%. ? So far management at the mill level is concerned it should be linked to productivity and efficiency. Enable the jute industry to build world class state-of-the-art manufacturing capabilities in conformity with environmental standards, and for this purpose, to pass on F oreign Direct Investment as well as research and development in the sector. ? Aggressive marketing measures need to be undertaken internationally. Markets like Africa and Middle East should be given top precession to recover the lost market. 3. 10. Major drawbacks Major problems of the jute mills are as follows annex in the cost of production while the sales prices of jute goods remain at the same level or even decline Accumulation of extensive losses and consequently, of huge debts Decline in exports of jute goods Electricity failures high-spirited wastage Labor unrest Poor management that affects productivity and frequent changes in government policies High cost of jute goods compared to synthetics led jute goods users to turn to synthetics. Concluding Remarks Before the independence, the country had six jute yarn mills. However, this sector had flourished during the 80s as the industry experienced a setback in the developed countries during the same period. The entrepr eneurs of the country bought these second-hand jute mills machineries with a very low investment and started setting up these jute spinning mills. deuce types of opinion exist in Bangladesh over the management of real mills under BJMC. One group is in party favor of privatization of the xisting state owned jute mills, where another group advocates reorganization/restructuring of BJMC mills. The mills under Bangladesh Jute Mills Corporation are exporting 0. 128 million (1. 28 lakh) m. tons of jute goods i. e. Hessian, Sacking and CBC. Mismanagement, corruption, inefficiency and lack of skilled manpower have gripped the BJMC mills. The mills should be run professionally to remain competitive in the open market but that are not full in case of BJMC, which is causing hundreds of millions of taka losses to the national exchequer. Time has come to put pragmatic sanction/realistic thought on the jute sector to compensate this promising sector. The government should devise plans to bri ng back the notoriety of the golden fibre.The demand for environmental friendly jute products are on the rise in the global market and Bangladesh should tap this prospect by implementing some short-, mid- and semipermanent plans to rejuvenate the ailing jute sector of Bangladesh. At present it is useless to be nostalgic about old prime era of our jute industry. straight we must formulate a pragmatic short, mid and long-term plan property in mind about upcoming needs of jute goods demand. Instead of remembering past mistakes, we must take lessons out of that and look forward with practical solutions which will bring back viability to our ailing Jute sector. This should be our only prime object. Recommendations Some recommendations are official below to be considered by the government in the greater interest of the jute sector To revive the glory of the jute industry, a high-powered committee should be constituted comprising the finance Secretary under the direction of the no us Adviser. The government should implement some short-, mid- and long-term proposals in a bid to revive the jute sector. The exiting jute mills of the Bangladesh Jute Mills Corporation should be converted into public limited companies keeping some shares in the hands of the government like that of the Bangladesh Biman. The government may create a Regulatory Board to run its vivacious corporations professionally and efficiently. The Regulatory remains will monitor every unit of the corporation and ensure their accountability. The government should put up a special fund to upgrade its existing jute mills to purchase necessary spares for machineries. below this package the government will provide 50 per cent of the total quote as grants and banks will give rest 50 percent on a long-term credit to jute mills. Irregular power supply is adversely affecting production of existing jute mills by track their competitiveness. The government may ask donor agencies like the World Bank (WB) and the Asian Development Bank (ADB) to arrange a special fund to provide long term loans at 3. 00 per cent interest to the existing jute mills to help them to procure stand-by generators. The use of stand by generators by the jute mills will help to save electrical energy at our national grid. administration is freehand 7. 5 per cent cash incentives on jute goods exports. To expand the market and increase competitiveness, the rate of cash incentives should be raised to 15 per cent from present rate. The government should ordinate a faithfulness making needful or compulsory to use of jute bags for internal consumption in packaging. To meet requirement of local markets, an initiative is necessary to pack saccharide, rice and pulse in 5-10 K. G. jute bags. The use of jute goods in the local market is limited. To increase the use, the government should also make law to use compulsory at least 20 per cent of total sugar and cement packaging with jute bags. The jute industrie s being an agro found and 100% export-oriented industry, the commercial banks are not implementing the Bangladesh Banks order to provide export credit at lower interest rate (7%), commercial banks should provide Export immediate payment Credit to jute mills which they give to the lash sector. Crisis of quality jute seed is a regular phenomenon in the country every year. The total requirement of jute seeds are 4,000/5,000 tons against government supply of only 400-500 tons. To meet local demand, sub-standard Indian seeds enter the Bangladesh market through imports and smuggling. To improve the situation and ensure quality seeds, the government should set up seed bank to distribute seeds among planters at subsidized rate. Government should also arrange to provide fertiliser at subsidized rate. Bangladesh Jute Research impart (BJRI) should also take appropriate measures to familiarize their new invention retting process among the farmers. need of skilled manpower has put the in dustries in grave situation. To overcome the situation at least a jute college may be arranged to set up at one of the closed BJMC jute mills. To address this situation promptly, government should introduce Diploma course of instruction on jute in the six textile institutes as early as these are under the ministry of textile and jute. The significance of Mongla porthole has increased as several hundred industrial units have been set in the southern part of the country recently. The government should initiate necessary steps to expand and develop the Mongla Port. The government should also take measures to promote and expand international trade of jute products by maintaining existing markets and by developing of new end users. 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 6. http//www. worldjute. com/jute_bangladesh/bangladesh_jute_news. hypertext markup language 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. hypertext markup language 9. http//www. worldjute. com/about_jute/juthist. html 10. www. jute-industry. com/history-of-jute. html 11. http//www. thedailystar. net/suppliments/2011/day of remembrance/part4/pg7. htm 12. http//www. bangladeshembassyinitaly. com/bangladesh. php 13. http//www. experiencebangladesh. com/bangladesh-business-jute. php 14. http//bangladesheconomy. wordpress. com/category/jute/