Bangladesh leads the world in jute production and ranks second in exports, but the true potential of jute products remains untapped in their homeland.
Industry entrepreneurs point to a critical gap: the absence of modern technology and technical training needed to elevate the quality and competitiveness of jute-based goods.
The Jute Diversification Promotion Centre, or JDPC, was created 22 years ago under the Ministry of Textile and Jute which a mission to enhance the production, marketing, and innovation of diversified jute products.
However, its first sales centre opened much later, in 2017, and the centre has seen limited success over the years.
JDPC operates a 10,000 square-foot sales centre on the first floor of its office in Dhaka’s Monipuripara, showcasing over 500 types of jute products for both sale and display.
Despite this, the centre remains relatively unknown due to inadequate promotion.
Sanchita Das, a banker visiting the sales centre, shared her disappointment with bdnews24.com.
She said, “There are many products, but they lack innovation. Jute shoes and clothes aren’t suitable for year-round use, so I can only buy one or two items out of interest. To boost sales, there’s a strong need for fabric and design improvements.”
JDPC Director (market research and development) Seema Bose Adhara acknowledged the limitations in product variety, saying: “In India, there are over 200 types of jute fabrics, even though they import jute from us. In contrast, we have only 10 types of fabric in three categories.
“This lack of diversity hinders competitiveness in price, global quality, and usability,” she said.
WEAK PROMOTION
JDPC’s website lists several responsibilities, including promoting and expanding the use of diversified jute products, supporting market expansion, and offering training to entrepreneurs.
However, these initiatives appear to exist only on paper, as progress has been limited.
JDPC also has a Facebook page and a YouTube channel, but both show minimal activity. The Facebook page has only 10,000 likes, reflecting a lack of a strong online presence.
Online entrepreneur Anika Jahan was surprised by the lack of social media promotion, calling it “astonishing.”
She also criticised the location of the sales centre, saying: “Having only one centre in Monipuripara makes it understandable that there’s no promotion. If there were branches in commercial areas, more people would know about JDPC.”
In response, Seema told bdnews24.com that plans are underway to enhance promotion through social media, YouTube, and an app next year. She also mentioned the possibility of opening branches in commercial areas.
Citing budget constraints, Seema added: “We organise six to seven exclusive fairs annually for promotion, down from 20-25 fairs a few years ago. We also participate in around 10 joint fairs.”
IMPROVING PRODUCT QUALITY THROUGH TRAINING, TECHNOLOGY
To improve product quality, entrepreneurs need timely training and access to modern technology, which is lacking, according to Seema.
She gave the example of jute bags in the United Arab Emirates market, where large bags made in India are sold for as low as Tk 20-30. In contrast, Bangladeshi bags cost Tk 350-400 to produce.
JDPC has 987 active entrepreneur members, with around 300 supplying products to its sales centre. Entrepreneurs can apply for training through the government portal but there is no dedicated application system for JDPC-specific training.
Each training session at JDPC accommodates around 25 entrepreneurs. Due to budget limitations, the original 21-day training course has been reduced to five days, with occasional one- or two-day workshops being held.
Regarding the lack of information on the training page of JDPC’s website, Seema said: “I don’t know why it’s missing. I will check it tomorrow.”
TWO ENTREPRENEURS RAISE CONCERNS
Nupur Khanam, the founder of Nupur Fashion and Handicrafts, has been in the jute product business since 2013.
She owns a factory in Purba Badda and independently markets over 500 types of jute products in both domestic and international markets.
She told bdnews24.com, “I don’t work with Jute Diversification Promotion Centre due to their commission-based business practices, and I fear my designs may be copied. Most JDPC members are brokers and traders, and the training they offer is minimal, like a basic introduction.”
Regarding incentives, she added: “I heard there’s a Tk 30 million budget for female entrepreneurs, but I haven’t seen any of it. Entrepreneurs are relying on their own efforts.”
Mehedi Hasan, a member of the Bangladesh Jute Product Manufacturers and Exporters Association, or JPMEA, echoed these concerns.
He said, “We’ve tried to discuss and organise training on design development, but nothing has materialised.”
On the issue of sales and orders through JDPC, Mehedi said: “JDPC takes 6 percent of the sales from the entrepreneur’s products, but the entrepreneurs are not informed about the orders. Every month, orders worth around Tk 6-7 million are made through JDPC’s sales centre, but accountability is lacking.”
When asked about these allegations, Seema said: “Nupur Khanam was once blacklisted, but I recommended reinstating her membership.”
Regarding claims of commission and design theft, she said: “She won’t be able to prove these accusations. JDPC doesn’t take her products because she fails to supply them on time.”
On Mehedi’s complaint, Seema said: “Yes, we handle many government orders, so the figure of Tk 6-7 million in orders is correct. It’s not that there’s a lack of accountability, but we can’t disclose the names of all companies involved.”
Regarding training, she said: “I provided this new entrepreneur with the opportunity to train in a team of 20. So, I don’t understand why there are still complaints.”
EXPORT DECLINE
In previous governments, initiatives were launched to promote alternatives to polythene and plastic, such as Sonali bags, jute leaf tea, and jute-based tin, known as ‘Jutin.’
It was also mandated that 17 products must use jute sacks for packaging.
However, none of these efforts gained significant traction.
In 2023, the government declared jute as an agricultural product to boost its popularity and reduce the use of polythene and plastic.
Despite these efforts, jute usage and export earnings have declined.
According to the Export Promotion Bureau, or EPB, in the 2022-23 fiscal year, jute and jute products worth $910.25 million were exported.
However, from July to May of the 2023-24 fiscal year, exports fell to $784.69 million, marking a 7.53 percent decrease compared to the same period last year.
When asked about the reasons behind this decline, Md Abdur Rouf, textiles and jute ministry secretary, told bdnews24.com: “I can’t provide the exact information at the moment.”
PROGRESS ON JUTE LEAF TEA, JUTIN, SONALI BAGS, AND JUTE PACKAGING INITIATIVES
While jute leaf tea is not widely popular in the local market, in 2019, with the support of the Bangladesh Jute Mills Corporation under the jute ministry, this herbal tea was exported to Germany.
A startup named Intertrop purchased the tea.
However, Rouf said the project stalled after the COVID-19 pandemic, and despite sending test results, the deal did not move forward.
“Many jute leaves were left unsold, as they no longer accepted the product,” he said.
Regarding Jutin, the secretary acknowledged its durability compared to regular tin, but noted that its high price could be an obstacle.
“Buyers are more inclined toward cheaper options. Entrepreneurs need to find a way to keep prices affordable.”
On the long-discussed Sonali bag project, Rouf said: “We’re awaiting approval to start piloting. The bags currently available are produced in labs.”
Although the Mandatory Jute Packaging Rules-2013 required jute-based packaging for 19 products, including rice, wheat, and maize, this initiative has not been fully implemented.
“Political decisions are needed in such matters,” Rouf said, adding that the government is pushing to ban polythene and will start enforcing packaging regulations during market inspections from Nov 1.
[Writing in English by Arshi Fatiha Quazi]
link