Tuesday, April 23, 2024

Jute bag manufacturers muff huge market

Blame lack of finance, policy & other supports
The country’s small and medium manufacturing units of jute goods are muffing a huge demand for jute bags on the global market due to lack of finance and international-standard production efficiency, reluctance of jute mills to sell quality jute fabrics in small lots, and lack of policy-level drive for diversification of jute goods.
Western importers are on the lookout for large supplies of environment-friendly jute bags but the local small and medium enterprises producing this item are failing to capitalise on the lucrative marketing opportunity, SME entrepreneurs of jute goods said.
One of them, Mahmud Ali, managing director of Peerless Enterprise at Gulshan in the capital, said, ‘The jute mills usually prefer selling jute fabrics in large quantities to jute yarn manufacturers to selling the fibre in small lots that the SMEs need and can afford to buy at a time.’
Abu Saleh Md Khurshed Alam, managing director of Shuchili Jute Multi-production Limited at Shantinagar in the city, said, ‘Shuchili can supply at most 10,000 hand bags to foreign buyers in four months’ time, while there are plenty of buyers ready to place orders for millions. We cannot take any big order due to a lack of finance for expanding our production capacity and of government support and incentives.’
The factory Abu Saleh owns is manned by only 20 workers. Even this tiny enterprise has supplied jute bags to Japanese and UK importers.
‘While the SMEs producing jute bags are muffing the opportunity of making bulk exports, the country is also missing considerable and sustainable export earnings from this new jute good,’ he pointed out.
Mahmud Ali echoed Abu Saleh by saying that ‘I had to refuse a supply order for 50,000 ladies’ bags for lack of finance. With our existing capacity, I cannot accept any supply order for more than 20,000 bags, though I wish I could go for the supply orders for millions of bags many buyers are ready to make.’
Abu Saleh urged the government to promote the SMEs producing diversified jute goods by providing them with tax waiver and both the SME MDs demanded that the government should increase the cash incentive given to them from 7.5 per cent to 20 per cent like other SMEs, including the handicraft manufacturers.
The government must raise the cash incentive for jute good manufacturers to help them survive the intense competition they face from Indian manufacturers, who are enjoying a 10 per cent cash incentive from their government, Mahmud Ali argued.
Shankar Roy, chief operations officer of Applied Senses, a buying house of jute goods and research-based designer of jute bags, said, ‘I had to let go of a supply order for 50 lakh hand bags from a UK buyer as no manufacturer was found which could produce so many bags in four months’ time.’
‘The government should create a duty-free export processing zone for jute good manufacturers and offer soft loans to these SMEs on flexible terms,’ Shankar said, mentioning that India had already established some such special processing zones.
The demand for products like jute bags has posted a sharp rise in the developed countries after the European Union banned the use of synthetic fibres to protect the environment.
Ishtiaq Ahmed, in charge of Jute Entrepreneurs Service Centre on Manik Mia Avenue in Dhaka, said, ‘There is no manufacturer in the country capable of meeting a large supply order, say for 50 lakh bags. Most of the units are small. Even five or six of them can hardly manage a big order jointly.’
He said, ‘The Jute Diversification Promotion Centre offers loans through the BASIC Bank to small and medium manufactures at 9 per cent interest. It is also running a skills development training programme for the manufacturers.’
According to the Export Promotion Bureau data, in fiscal year 2009-10, Bangladesh earned more than Tk 14.14 billion, or 25 per cent of the total export proceeds of the sector, from raw jute exports, Tk 28.65 billion or 50 per cent from jute yarn and twine exports, Tk 9.85 billion or 17 per cent from jute sack and bag exports, and Tk 4.12 billion or 7 per cent from other jute goods exports.
The earnings from raw jute exports have risen by 85 per cent in July to February of the current fiscal year, by 50 per cent from jute yarn and twine exports, and by 34 per cent from jute sack and bag exports, and decreased by 15 per cent from other jute goods exports from that in the same period of FY2009-10.
Although jute sack and bag exports have increased a bit, as the data show, the country is exporting more raw jute and jute yarn and twine, with the jute production on the rise.
Shankar Roy said, ‘The country’s jute export will soon face a crisis if it remains focused on exporting raw jute and jute yarn and twine as the global market of these products is almost saturated and the prices will soon begin to slide with the supply surpassing the demand. Besides, to survive the competition with India and keep up the growth in export earnings made by the jute sector, there is no alternative to diversifying jute products.’
‘The demand for diversified jute products like jute bags is rising among the international buyers, with brands like IKEA and TESCO already showing interest to import jute bags from Bangladesh,’ he pointed out.
The jute bag manufacturers demanded that export of raw jute should be banned as the local jute good manufacturing industries were already facing a shortage of raw jute with the number of new jute spinning and other jute good manufacturing units on the rise.


Courtesy of New Age

Related News

Shwapno opens new outlet in Pabna

Business Desk : dhakamirror.com Popular retail chain shop “Shwapno” has opened a new outlet in Pabna’s Sujanagar at Molla Super Market. The inauguration took place at 5:30pm on 30 December, reads a press release. Present at the event were Ahmed Firoz Kabir, Member of Parliament for Pabna-2 (Sujanagar, Aminpur), Chairman Shahinujjaman Shahin of Sujanagar Upazila, ... Read more

Shwapno launches new outlet at Bashundhara

Business Desk : dhakamirror.com Shwapno, the largest retail chain in Bangladesh, launched an outlet in the Bashundhara area on Thursday offering a month-long discount with a home delivery facility. On behalf of Bashundhara Group, media advisor Mohammad Abu Tayeb inaugurated the outlet as guest of honour at the Rupayan shopping centre in the residential area, ... Read more

With ‘Face ID’ and ‘Fingerprint’ login bKash app is now more secure, user-friendly

Business Desk : dhakamirror.com bKash app introduces biometric ‘Face ID’ and ‘Fingerprint’ login features to make users’ daily transactions easier and safer. Alongside, exciting new features – ‘Group Send Money’, ‘Request Money’, ‘Savings Marketplace’ and selecting ‘Default Card’ to use the ‘Add money’ service from VISA card to bKash – are also included in the ... Read more

Grameenphone wins ‘Bangladesh Sustainability Excellence Awards 2023’ in Financial Inclusion

Business Desk : dhakamirror.com It was an evening to rejoice and remember for Grameenphone at the Bangladesh Sustainability Excellence Awards 2023, as the organization’s sincere efforts with flagship initiatives GP Accelerator and GP Academy received due recognition. Renowned media house The Daily Star, along with CSR Window, honored the winners at the Bangladesh Sustainability Excellence ... Read more

Banglalink wins the best sustainability award

Business Desk : dhakamirror.com Banglalink has won the ‘Best Sustainability Excellence Initiative’ award in the ‘Disaster Response’ category at the ‘Bangladesh Sustainability Excellence Awards 2023,’ jointly presented by The Daily Star and CSR Window Bangladesh. The award is in recognition of Banglalink’s contribution to societal welfare through the innovative integration of an Early Warning System ... Read more

StanChart wins Mastercard Excellence Awards

Business Desk : dhakamirror.com Standard Chartered Bangladesh has clinched awards in three categories at the “Mastercard Excellence Awards 2023”. The categories are “Excellence in Mastercard Contactless (Issuing)”, “Excellence in Mastercard Credit Business (International)”, and “Excellence in Mastercard Business (Innovation)”. Naser Ezaz Bijoy, chief executive officer of the multinational bank, received an award from Atiur Rahman, ... Read more

Nagad wins Mastercard Excellence Award 2023

Business Desk : dhakamirror.com Nagad, a popular mobile financial service provider in Bangladesh, has clinched “Mastercard Excellence Award” 2023 for its contribution to credit card bill payments. The mobile money carrier has been honoured with this prestigious award as the “Master Evolution”, reads a press release. On behalf of his company, Nagad’s Executive Director Maruful ... Read more

Prime Bank clinches Mastercard Excellence Awards 2023

Business Desk : dhakamirror.com Prime Bank PLC, a leading private commercial bank of the country, has won Mastercard Excellence Awards 2023 for Debit Business (Domestic) category. Nazeem A Choudhury, deputy managing director of the bank, and Masudul Haque Bhuiyan, head of Cards & Alternative Delivery Channel, received the award from Dr Atiur Rahman, former governor ... Read more

Zakia Rouf Chowdhury elected as vice chairman of Bank Asia

Business Desk : dhakamirror.com Zakia Rouf Chowdhury has been elected as Vice Chairman of Bank Asia Limited recently at the 508th meeting of the Board of Directors of the bank. She has an illustrious business career of more than 35 years in the private sector of Bangladesh. Since inception, she has been holding leadership positions ... Read more

Yamaha celebrates 7 years with ACI Motors

Business Desk : dhakamirror.com ACI Marts is the sole distributor and technical collaboration partner of Yamaha motorcycles in Bangladesh. ACI Motors started its journey in 2007 as a subsidiary of renowned company ACI Limited. In 2016, Yamaha started a new journey in Bangladesh with ACI Motors. At present, more than 116 Yamaha 3S (Sales, Service ... Read more

Walton boosts TV exports to Denmark, Ireland

Business Desk : dhakamirror.com Bangladeshi global electronics brand Walton has boosted up its exports of television to Denmark, Ireland and other European countries as the demand of Walton television goes high in those countries in recent times, according to a press release. Walton Global Business Unit’s Vice-President Syed Al Imran said that Walton has been ... Read more

Mutual Trust Bank launches privilege centres in Dhaka

Business Desk : dhakamirror.com Mutual Trust Bank Ltd recently launched its two revamped privilege centres in Dhanmondi and Uttara celebrating “MTB Retail Fest 2023”. Syed Mahbubur Rahman, managing director and CEO of the bank, inaugurated the centres as the chief guest, said a press release. Privilege Banking customers enjoy a wide range of exclusive benefits, ... Read more

Prime Bank Investment launches PrimeInvest

Business Desk : dhakamirror.com Prime Bank Investment Ltd (PBIL), a subsidiary of Prime Bank, launched PrimeInvest, a comprehensive discretionary product suite that aims to foster access to investment for individuals and institutional investors. CQK Mustaq Ahmed, chairman of PBIL, inaugurated the product at its head office in Banani in the capital, said a press release. ... Read more

Midland Bank strikes deal with Bangladesh Bank

Business Desk : dhakamirror.com Midland Bank Ltd recently signed a participation agreement with the Financial Sector Support and Strategic Planning Department (FSSSPD) of the Bangladesh Bank for availing refinance facility in US dollars. Liza Fahmida, director of the BB department, and Md Ahsan-uz Zaman, managing director of Midland Bank, inked the deal at the BB ... Read more

National Bank signs deal with Bangladesh Bank

Business Desk : dhakamirror.com National Bank Ltd has signed an agreement on “Financial Inclusion Credit Guarantee Scheme” with Bangladesh Bank, aiming to boost financing to cottage, micro, small and medium enterprises (CMSME). Manoj Kumar Howlader, director of the credit guarantee department of the central bank, and Md Mehmood Husain, managing director and CEO of National ... Read more

foodpanda and Toffee: Doubling Up on Benefits for Customers

Business Desk : dhakamirror.com foodpanda Bangladesh partnered with Toffee of Banglalink Digital Communications Ltd, a digital streaming entertainment app, to enhance the experience of Toffee subscribers by offering them exclusive foodpanda discount vouchers. An agreement has been signed between Toffee and foodpanda on this partnership on Thursday, reads a press release. Through this partnership, any ... Read more

US-Bangla gets recognition of IATA

Business Desk : dhakamirror.com US-Bangla Airlines, one of the largest airlines in Bangladesh, has become the first domestic private airline to be recognised as an International Air Transport Association (IATA) airline. By 2023, 18 airlines in the world have achieved accreditation as IATA Airlines, among which US-Bangla is one, reads a press release. Although several ... Read more

Emirates crowned as 2024 APEX World Class Airline

Business Desk : dhakamirror.com Having mastered the guest experience and providing exceptional customer service, Emirates was recently named a 2024 APEX World Class Airline winner at the 2024 APEX/IFSA Awards, held in Long Beach, California. Emirates is one of just eight airlines globally to achieve this accolade, reads a press release. Emirates also received a ... Read more

LAYS launches campaign with Shakib Al Hasan, Soumya Sarkar and Taskin Ahmed Tazim

Business Desk : dhakamirror.com Lay’s, one of the world’s most loved potato chip brands under the PepsiCo umbrella, has launched an engaging campaign featuring Bangladesh cricket stars Shakib Al Hasan, Taskin Ahmed and Soumya Sarkar as its brand ambassadors. Together, this dynamic trio will play essential roles in the upcoming Lay’s campaigns, endorsing the brand ... Read more

1,000 can win bKash World Cup Quiz everyday

Business Desk : dhakamirror.com A thousand winners can get Tk50 each everyday by participating in the bKash World Cup quiz. By answering 3 simple cricket related questions in the shortest possible time and making a transaction through bKash app one can win the prize. The quiz competition will continue till October 25, reads a press ... Read more