The government is working to turn a larger share of Bangladesh’s raw jute into higher-value products to boost foreign exchange earnings and government revenue, Textile and Jute Minister Khandaker Abdul Muktadir said on Saturday.
He said raw jute, which has limited value addition when exported, could generate several times more revenue if processed into packaging products, sliver, blended fibre and other higher-value goods.
“Last year, the highest market price of raw jute was around Tk1.5 lakh, or about $1,200, per tonne,” Muktadir said at the opening of a six-day diversified jute products fair and the Jute Diversification Promotion Centre (JDPC) Express outlet at Tejgaon in Dhaka.
The same quantity of jute could fetch around $2,400-$2,500 when converted into packaging products, while blended fibre made by combining jute with cotton or other fibres could raise its value to around $4,000-$5,000 a tonne, he said.
The minister said the government wants to maximise the amount of domestically produced jute converted into value-added products and is working with relevant agencies and entrepreneurs to identify the products and sectors where jute can be used most effectively.
“We want to maximise foreign exchange and revenue collection from jute through value addition,” he said.
The government is also preparing a plan with the JDPC and private-sector associations to diversify jute products and expand exports, he said.
Muktadir said the government was simultaneously working to develop promising non-RMG sectors, including silk, handloom and diversified jute products, to broaden the country’s export base.
As part of the initiative, a permanent showroom has been opened at the JDPC premises to promote such products and create greater access to domestic and foreign buyers.
The minister said many diversified products are handmade and produced by small industries, and the government wants to help these businesses move to a higher level of development through regular fairs, exhibitions and market-expansion initiatives.
State Minister for Textiles and Jute Md Shariful Alam said the JDPC Express outlet would operate as a permanent sales and display centre for diversified jute products as well as handloom and silk goods.
He said the government plans to establish similar outlets at other important locations, including international airports and Bangladesh missions abroad, to promote Bangladeshi products among international consumers.
The government also wants to increase the use of environmentally friendly products and discourage the use of polythene, while promoting GI products, diversified jute goods, Rajshahi silk and handloom products, he said.
Alam said the initiative was also aimed at restoring the traditional importance of jute, once known as the “golden fibre”, by increasing its production, expanding the use of diversified products and creating domestic and international markets for them.
The six-day diversified jute products fair will run from October 3 to 8 at the JDPC premises, from 10am to 8pm daily.
The newly opened JDPC Express will remain open seven days a week from 11am to 8pm.