Promising jute bag market seen in Europe

Bangladesh could a huge amount of money annually from export of jute bags the demand for which has been increasing in the world market. International Jute Study Group estimated that annual world demand for shopping bags is 500 billion pieces.
Leading food retailers Tesco, the Co-operative Group, Sainsbury’s, Morrisons and John Lewis-Waitrose partnership are expanding grocery convenience formats.
In the UK alone, the grocery market was worth £150.8 billion for the calendar year 2010, an increase of 3.1 per cent over the previous year.
By 2014, IGD (a research organisation dedicated to the development of food and grocery industry) predicts that the Chinese grocery market will be worth €761bn (about $1.046 trillion at today’s rate), compared to a forecast US market value of €745bn ($1.024 trillion).
Companies like The Body Shop are also moving towards a ‘greener’ packaging revolution. Demand for natural, biodegradable bags will gradually increase as more and more chain shops around the world phase out the use of polythene bags and use bio-friendly natural fibre bags instead.
Jute goods manufactures of Bangladesh export around 1,00,000 shopping bags a month on an average to different countries. They mentioned that there is scope for export of more jute bags in the years ahead, as some European countries are set to ban polythene bags.
As per Indian NIIR Project Consultancy Services India had exported about 40 million jute bags mainly to Europe in 2008-09 and the number is likely to cross 75 million by 2011-12.
This also appeared in the Business Standard, an online Indian newspaper, that India exported 40 million bags at the end of March 2009, especially to the European countries. This number is expected to rise to more than 75 million in the next 3 years.
It also reported, Association of Jute and Handicrafts Entrepreneurs of Eastern India president Sushil Khetan said that India’s export of jute bags in 2008-09 was estimated at Rs 200 crore while it was Rs 120 crore in the previous year.
Technological improvements are a must to garb the world shopping bag markets by the jute bags from Bangladesh.
Experts said that if the fabric could be made lighter and more softer, customers would feel more comfortable in using these bags and reuse could increase. It could also result in cheaper fabrics compared to light cotton fabrics.
Upgrading in additional or supporting processes could make these processes cheaper and thus aid in making the final price of the bag cheaper. Improving the human resource and creating a skilled workforce is essential if this industry is to take advantage of the growing demand worldwide.
The government mills can introduce new technology in specific production processes (such as making jute fabric lighter and in making wet process and lamination more cost effective) under one umbrella.
These may then be offered to manufacturers at a competitive rate. This will compensate the government and also enable all manufacturers to offer wider range of and cheaper products without committing to expensive machinery that may ultimately increase their cost of production.
According to jute and textile ministry resources, the government is planning to formulate National Jute Policy which might include a duty-free export-processing zone for jute good manufacturers (including jute diversified products producers) and offer soft loans to these SMEs on flexible terms to encourage the growth of more industries in the jute sector.
‘This will enable the country to obtain larger orders of bags that are currently being rejected due to the inability to provide importers with large quantities of bags.’
Creation Private Limited managing director M Rashedul Karim Munna, who work on jute and jute goods export, said that if the government patronise the sector properly it would be possible to earn Tk 500 crore to Tk 700 crore each year by exporting jute bags.

 

Courtesy of UNB/New Age

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