Textile industry plays a veryvital role in the export history of Bangladesh. It contributes to approximately80% of the foreign exchange revenue generation. The industry generatesemployment opportunities for more than 4.5 million people. The industry is makinga notable contribution for the growth of the country's economy and foreignexchange earnings.
The Golden Industry of Bangladesh:
Jute industry has played anintegral role in the development of the countrys economical growth. Theindustry is primarily export oriented. But, with the advent of other syntheticfibres, and increased consumer demand for apparels made from those fibres, thisgolden fibre went into extinct.
Generally used as a raw materialfor making sacks, jute is a versatile fibre given to mankind by nature. Currentlyis has various applications starting from handicrafts to technical textiles. Thisis the cheapest lingo cellulosic fibre. Exports of jute are both on raw fibres,and jute manufactured goods. Not until recently, world understood the value ofthis natural fibre. With the growing threat of global warming and awarenessamong the people to live an environmentally friendly, the fibre has regainedits importance. A surge in the export of jute products has resuscitated theindustry.
Bangladesh is now all set to takepart in the global competition for high value and competitive jute products. Morethan 90% of the worlds raw jute fibres are being exported from Bangladesh. Every year exports are approximately 3, 00,000 to 4, 00,000 tons. Government of Bangladesh has implemented new policies to focus on the production capacityof jute based products, diversification of the product base and growth ofexport earnings.
- From your perspective, how would you observe the global market for jute products?
The market for traditional juteproducts has declined over the years due to competition with the differentcheaper goods produced from synthetic and polypropylene. But with the increasedenvironmental awareness about the use of eco-friendly and bio-degradableproducts, popularity of jute products have been on rise both in developed anddeveloping countries for effective retardation of ecological degradation. Ithas diversified use as industrial raw materials, intermediate and end useproducts having global market demand. Jute has a great potential to contributeto create a larger employment opportunity, income generation and povertyalleviation through improvement of quality of jute fibre, adaptation of newtechnologies and processes for diversified jute products and alternative use ofit.
- As we know, recession is sending shivers all across the globe. What is its impact in the textile and garment sector of your country?
But the global economic recessionstarted in the recent years created a negative impact on the overall demand ofT&G (Textile and Garment) products. This has also affected the exportmarket situation of T&G products of Bangladesh in the following ways:
- Export order reduced to a considerable level,
- The buyers are offering unusually low price to the manufacturers / exporters and
- The profit margin for T&G export now reached to a minimum or even lower than the break-even level.
- What are the challenges faced by the textile industry of Bangladesh?
Bangladesh is now facing severe competition with the textilerich countries like China, Pakistan, India, Indonesia and many other countriesin respect of export of T&G products. Bangladesh is now trying to overcomethe marketing crisis of T&G by enhancing financial package, rescheduling ofloan and repayment of overdue interest at a reasonably reduced rate,strengthening human resource development programme etc.
- Holding a pivotal role in the textile and jute sector of Bangladesh, highlight the initiatives taken, to bring the jute sector under the global spotlight?
The following reforms are under implementation to make the jute products popular and competitive in the international market over the synthetic based products:
Efforts for production of high yield jute seeds for quality raw jute production have been initiated,
-
Diversification of jute products to meet the multifarious use in the domestic and export markets, Jute Research Institute is being strengthened for development of production of diversified jute goods, appropriate steps have been initiated for increasing the use of eco-friendly jute and jute goods in the domestic and overseas markets, to increase domestic use of jute goods, necessary steps are being taken for ensuring compulsory use of jute bags for food crops, sugar, fertilizer, cement etc., the Government has been encouraging setting up of smaller mills since these are more profitable and manageable compared to the composite mills, for ensuring sustainable supply of skilled manpower for the jute industry, Diploma Course on Jute Technology would be introduced.
-
Is the country favorable for FDI? How would you emphasize your answer?
The entrepreneurs of overseas countries may find investment in the Primary Textile Sector (PTS) of Bangladesh more attractive as Bangladesh has the following positive advantages over those of other competing countries:
- Abundant cheap, skilled, and trainable labor.
- Availability of low cost infrastructure facilities.
- Various incentive packages are allowed particularly for Foreign Direct Investment and Joint-venture projects.
Investment in the textile sector of Bangladesh would be very lucrative either on 100% foreign participation or on Joint-venture basis. The investment may take place for setting up of new textile mills with state-of-the-art technology in the suitable private land or in the Industrial Parks or Export Processing Zones (EPZs) of the country.
Today jute is valued as an eco friendly, natural fibre with versatile applications ranging from ordinary packing material to geo-textiles, carpet, apparels, upholstery and many more. Jute industry in Bangladesh is more exposed to the global market conditions and competitive prices.
References:
Comments