Impact of Jute in Bangladesh Economy

green Jute plant

The scientific name of the jute is corchorus spp. It is called the golden fiber of Bangladesh and it was one of the top exported products of Bangladesh after independence. Bangladesh is the second-largest jute producing country worldwide.

Jute is a 1-3 meter long, soft, and shiny plant that is used to make long threads. The life of the jute is 100 to 120 days. Jute is mainly made of cellulose and lignin which is partially textile fiber and partially wood. The color of the jute plant is green while passing its lifetime. Farmers separate fiber after rotting them into water. When it is ready to use in industry, it is called raw jute and color is off-white to brown. 

According to the Agriculture information service, there are about 40 lakh farmers who cultivate jute. The GDP contribution of Jute is 0.26 percent. Every year this country produces 80 lakh bales of jute from 7/8 lakh hectares of land.

Brief history of jute

Jute was used in Indus civilization in 3rd BC and it was used as food in ancient Egypt. For many years, Jute is the part of East Bengal and West Bengal. In ancient times, they used jute fiber to make cloths. During the British region, the British started to export jute from Bangla in the seventeenth century. Many British merchants got rich exporting jute and related products.

Dandee jute baron and the British East India company build up many jute factories in Bangla. Jute was also used in the military, more than one billion sandbags were exported from Bengal to the field of world war-1.

Jute trade boomed through the eighteenth and nineteenth-century but it ceased in 1970 when synthetic fiber occupied the market. Now, it is one of the most important crops of BD and regaining its market position.

Reforms of jute industry of BD

After independence, the government of BD nationalizes all big enterprises and all the large jute industries nationalized under Bangladesh jute mill corporation (BJMC). In the early 1980s, some changes appear there about 50 percent of those mills got privatized again.

Govt tried to detect the problems of the jute industry in the 1990s as they got world banks full support under jute sector adjustment credit. But the loss of every year made the conditions worst and they closed 9 mills, and downsize two large mills and privatized most of the mills.

In 2002, the total loss of BJMC was TK 3.9 billion and the largest jute mill of BD, Adamjee Jute Mill got stopped as it occurred losses and made the situation worst. After stopping of AJM the loss reduced to TK 2.1 billion. AJM became EPZ in 2006. But today the are turning back, jute is regaining its value. United Nation declared 2009 as the international year of natural fiber and people are using jute products as it has no effect on the environment.  

Jute Products

Jute has some features like UV protection, color, durable, strongest, heat and sound insulation, biodegradable, and low thermal conduction. So, it is wise to use jute and its products.

jute products
  1. Jute is mainly used to make sacks, carpet, rugs, curtains, and different types of covers. Jute can be used alone or mixed with other types of fiber or synthetic.
  2. It has a biodegradable feature. Where synthetic is unusable, we can use jute there. Jute perishes on land easily.
  3. Jute can be used to make paper and pulp. It reduces the dependence of forests.
  4. Very fine threads are coming from jute. It can take the place of silk. In the textile industries jute is necessary for its lignin and cellulose. Wood fiber comes from jute showing us hope.
  5. Jute is used in making furniture and blending industries.
  6. Jute has some extraordinary items like soft sweaters, espadrilles, floor coverings, home textiles, geotextiles, etc.
  7. Another jute item Satranji is very popular in home decoration.

Recent export data of jute

According to the Export Promotion Bureau (EPB), in 2018 Bangladesh export earned worth $1.02 billion & in the next year, its export was worth $816.27 million.  In 2019 they earned by exporting raw jute worth of $112.48 million, jute yarn & twine 512.42 million, jute sacks and bags $83 million and other jute products $108 million.  

In the fiscal year 2019-20, the total export of jute and its items is worth 88 crores 23 lakh 50 thousand dollars. from those Jute yarn alone earns 56 crores 46 lakh dollars and it is about 64% of the total export of jute.

In 2020-21 the total target of earning by exporting jute and its product is worth $1.16 billion. in the first three months, it earns 30 crores 75 lakh and 50 thousand dollars. which is 39.26 percent higher than in previous years at that time.

Government stops all 26 government-operated Jute mills and sent retirement to all 24886 employees using a golden handshake.

If Bangladesh can increase production capacity and diversify its products; they will get more and more orders and their export will bloom.  

Advantage of using jute

  1. Jute items are recyclable and it perishes in soil.
  2. Jute requires fewer insecticide and fertilizer.
  3. Jute leaves are eaten as a vegetable.
  4. The color of this natural fiber is lightly golden and shinning.
  5.  It is responsive to dying and easily takes color.

The disadvantage of using jute

The jute is responsive to water. Some primary jute items like sacks can perish if it gets wet. Micro bacteria can attack here in the humid climate.


Wikipedia jute

About ataur

I am Ataur Rahman Ferdous a bangladeshi citizen. I have completed my graduation from Begum Rokeya University, Rangpur, Bangladesh.

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