Jute Matters

Jute Matters

Jute Matters
1. Natural Fibres: Critical Phase Natural fibres are mainly bio-based fibres of vegetable and animal origin. Jute is a natural fibre second only to cotton in terms of global production. The table-1 shows the estimated global production volume averages of different natural fibres. Figure-1 gives a comparative idea about the Global Fibre Scenario Natural Vs Manmade Fibres (MMF). It is observed that Compound Annual Growth Rate (CAGR) in case of manmade fibres (MMF) is higher indicating a growing higher market share for MMF. In 1990 the share of natural fibres and MMF was 51% and 41% respectively while in 2007 it has been reversed. MMF appears to have a steady growth but there are fluctuations in case of natural fibres. With the observance of the International Year of Natural Fibres (IYNF)-2009 and the current year being celebrated as International Year on Forests, and growing awareness about pollution free sustainable environment it is high time to make a global concerted efforts to re-establish the natural fibres in its earlier predominant position. This objective should become an integral part of global efforts towards cutting down the pace of global warming.

GLOBA L
Fig-1: Global Fibre Scenario Natural Vs Manmade Fibres

Jute Matters In order to realise the objectives of IYNF 2009 and to correctly position the natural fibres, the natural fibre cultivation, the industry and the product mix needs to have a fresh strategic approach through increased productivity, better industrial efficiency, product diversification and development of effective supply chain and marketing mechanism to meet the demands of eco-friendliness and sustainability in future. Revival of natural fibres faces one of the biggest challenges from the growing global concerns for food security. IJSG, with its limited resources, is working on the generic promotion of natural fibres through enhancing their profiles along with sensitizing the stakeholders about the prospects of natural fibres lying ahead. Reconciling the need for a sustainable development in the context of food security is going to be the biggest challenge for natural fibre textile community.
Name of fibre Cotton Jute Wool Flax Kenaf Coir Sisal Ramie Abaca Hemp Silk Henequen Kapok Manmade cellulosic fibres Million Tons 25.00 2.50 2.20 0.50 0.45 0.45 0.30 0.15 0.10 0.10 0.10 0.03 0.03 3.30 Main producing Countries China, USA, India, Pakistan India, Bangladesh Australia, China, New Zealand China, France, Belgium China, India, Thailand India, Sri Lanka Brazil, China, Kenya China Philippines, Ecuador China China, India Mexico Indonesia India, China

Table-1: Estimated global production volume averages of different natural fibres (in million MT per year, average over the recent years). Jute constitutes about 50% of the total global production of bast and hard fibres, a group of fibre distinct from cotton (seed fibre), wool and silk (animal fibres) the later being primarily

Jute Matters used for traditional textile applications like clothing, home textile and some other applications (Fig.-2). Most of the bast (origin from plant stem) and hard fibres (origin from other parts of a plant) are primarily used for non-clothing (technical textile) applications.

Fig.2: Bast and Hard Fibres Production Percentage Apart from being the most important natural functional fibre jute is also important for achieving the global objectives of poverty alleviation. It is grown in a region (Bangladesh, India, Nepal, China, Myanmar, Vietnam, Thailand) producing 63% of natural fibers, having 49% of global population and consisting of 66% of world multidimensional poor population (Fig.-3).

B
1

Jute Matters

Fig- 3: Production of Natural fibres (including cotton) in percentage terms Cultivation of Raw Jute 2. Area under jute cultivation On an average 1300-1400 thousand hectares (Ha) of land is now cultivated for growing jute, kenaf and allied fibres in the major producing countries. In 2004-05 the jute cultivation area in Bangladesh was 4, 65,400 Ha which increased to 4, 85,600 Ha in 2005-06 and to 5, 33,400 Ha in 2006-2007. The area, however, reduced to 4, 08,100 Ha in 2008-09 and in 2009-10 it reached 4, 85,800 Ha, an increase of 19% from the previous year. The jute area in India was 9, 16,000 Ha in 2004-05 which rose to 9, 52,000 Ha in 2007-08 but decreased to 7, 73,700 Ha in 2009-10 (Fig.-4). The area of jute, kenaf and allied fibres in China, Myanmar, Nepal and Thailand is shown in Table-2. In Thailand the acreage has reduced significantly which is largely due to the discontinuation of use of Roselle (mesta) as raw material for making paper by Phoenix Paper Mill since last few years. In China the acreage remains almost same. One of the reasons of reduction of jute/kenaf growing area in Myanmar can be attributed to the closure of some jute mills and preference of the farmers to grow cereals.

Jute Matters

Jute Area in Bangladesh and India

1000000 800000 600000 400000 200000 0

'000 ha

Bangladesh India

c
2004/05 2005/06 2007/08 2008/09 2006/07 2009/10

Year

Fig-4: Jute Area in Bangladesh and India Year / Country 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

China Myanmar Nepal Thailand

32.0 35.4 11.8 16.6

31.1 41.0 12.2 3.1

31.0 46.5 12.0 2.3

33.0 20.4 11.7 1.2

30.0 14.3 11.6 1.5

30.0 8.9 11.6 1.5

Table-2: Area of jute, kenaf and allied fibres in China, Myanmar, Nepal and Thailand (in 000Ha) The increase and decrease of jute cultivation area is related to relative price of jute and food crops, the prices of raw jute in the previous crop year apart from climatic aberrations in the largely rain-fed areas under cultivation for these crops. Jute competes for land with food crops such as paddy in Bangladesh and India and also other producing countries because of increasing demand for food grains with increase of population and increasing consumption levels. The cultivable land is diminishing in Bangladesh and India in absolute terms as well because of housing and infrastructure projects. Pressure on cultivable land from food crops is

Jute Matters going to be one of the biggest limiting factors for future expansion of jute, kenaf and allied fibres. 3. Raw Jute Production The statistics of world production of Jute, Kenaf and Allied fibres for the last 10 years shows that it tends to be around 3 million MT a year with the lowest of 2405.95 thousand MT in 2004-05 and highest 3144.91 thousand MT in 2001-02 (Table-3). Global production and production in major producing countries is given in Table-3. The recent production volume in Bangladesh and India shows that the production is increasing indicating a sign of encouragement to meet the stimulated demand in the world market (Fig.-5). The production in Bangladesh shows a steady growth because of increasing trend of market price. F g

Production of Jute, Kenaf & Allied Fibres

i
'000 tons

2500 2000 1500 1000 500 2002-03 2003-04 2006-07 2007-08 2008-09 2000-01 2001-02 2004-05 2005-06 2009-10 Thailand 0

Bangladesh

China

India

Nepal

5: Production of Jute, Kenaf &Allied Fibres in major producing countries The fluctuations in the raw jute production in India can be attributed to decreased acreage under jute cultivation on account of strikes in the jute mills and partly due to low productivity and early floods. In China the yield per hectare is going down resulting in lower production because the Chinese growers now tend to grow fibre crops in poorer soil and prefer to grow cereals in better soil. Table -3: World production of jute, kenaf and allied fibres (in '000 MT) Total Jute, 2001200220032004200520062007-08 20082009-10

Jute Matters Kenaf & Allied Fibres: 2724.1 World Bangladesh China India Indonesia Myanmar Nepal Thailand Vietnam Africa 3144.91 3084.93 2852.33 2405.95 924.7 793.3 963 810 136.0 130.0 99.78 86.92 1890 1980 1620 1350 10.2 6.8 7 7 50.8 41.9 42 33.63 16.4 17 17.04 16.89 56 46.37 41.33 35.66 14.6 20.5 12.5 14.2 12.5 12.4 12.7 13.2 3 3021.1 2997.32 2596.6 2883.9 965 990 990 931 1080 82.82 86.8 86.8 80.0 80.0 1530 1800 1782 1476 1620 7 3.1 4 3.8 3.8 36.89 43.6 19.1 12.9 8 17.66 17.1 16.8 2.9 1.8 4.6 3.6 2.2 2.9 1.8 15 10.6 31 8.8 9 13.19 13.29 13.29 13.3 13.3 02 03 04 05 06 07 09

Source: FAO statistics (June 2010) Apart from climatic and market factors, non-availability of quality seed at the right time also has adverse effect on fibre production. However, since 2009 the market price of raw jute in the previous season is playing key role in jute production. Production in Bangladesh has gone up to 1080 thousand MT in 2009-10, the highest in the last decade and an increase of 16% from the previous year. The production in India has increased by about 10% in 2009-10 compared to 2008-09. World production has also increased in 2009-10 by about 12% from the previous year (2008-09). The increased production is the outcome of higher price of jute in the last two seasons compared to that of rice. This has generated quite a deal of enthusiasm among the farmers to grow jute. In the context of the current situation it can be assumed that in view of the previous price trends, farmers in both India and Bangladesh would prefer jute cultivation and as a result jute cultivation area and jute production is likely to increase significantly during the next crop. 4. Productivity of jute, kenaf and allied fibres Per hectare yield in Bangladesh is almost unchanged since the last five years while in India it has increased but still short of average yield in Bangladesh (Table-4). The yield in China is much higher than those in Bangladesh and India while in Thailand it shows declining trend. Productivity issue needs particular attention of the research institutes of the producing countries as it holds the key to the higher production of fibre that can meet the increasing demand.

Jute Matters Table-4: Yield of jute, kenaf and allied fibres in major producing countries in MT / ha Year/Country Bangladesh India China Myanmar Nepal Thailand 2004-05 1.93 1.47 2.72 0.95 1.43 2.16 2005-06 2.34 1.64 2.66 0.90 1.45 1.51 2006-07 2.22 1.93 2.80 0.94 1.43 1.55 2007-08 2.47 1.87 2.63 0.94 1.43 1.79 2008-09 2.28 1.88 2.67 0.90 1.47 1.93 2009-10 2.22 2.09 2.67 0.90 1.47 1.20

Availability of cultivable land is going to remain a limiting factor, hence increased productivity through development of more productive races, multiplication and extension of existing high yielding varieties is to be taken up as a mission in the producing countries The high yielding varieties viz. O-9897, O-72 and O-795 developed by the Bangladesh Jute Research Institute (BJRI) are cultivated by less than 50% of farmers because of unavailability of sufficient quantity of seed of these varieties. If these varieties particularly O-795 could have been used by all the farmers through out Bangladesh as per recommendations of BJRI, the production would have increased by about 30%-50%. More than 50% of farmers use Indian seed of variety JRO 524 a substantial part of which comes from India. Chances of supply of spurious seeds through unofficial channels in the name of JRO 524 cannot be ruled out. In India tossa jute occupies about 90% of total acreage under jute and varieties like JRO-524, JRO- 128 and JRO-8432 occupy maximum area. Although newly released varieties like JRO128, JRO-8432, JRO-204 have very high fibre yield potential of about 3-4 MT/Ha their rate of adoption is very slow because of lack of assured availability during the sowing season. Seed traders usually bank on assured market of old and established popular varieties. Thus the current productivity level in India, too, is much below the yield potential of newly released varieties. Through Jute Technology Mission, India is working on an ambitious seed improvement program but the outcome of it is still to come out fully and reach the farmers. It is also worthwhile to mention that recently jute Genome sequence has been decoded by Dr. Maqsudul Alam, a Bangladeshi scientist working at the University of Hawaii, USA and as Director, Institute of Chemical Biology, and University of Sains, Malaysia on a project sponsored by the Government of Bangladesh. The work was done in collaboration with Bangladesh Jute Research Institute (BJRI) and University of Dhaka. This is likely to facilitate future development of varieties that will be pest resistant, suitable for growing in saline areas,

Jute Matters drought and flood tolerant and may also produce fibres of higher strength and better colour. Jute genome decoding can also facilitate the development of product-oriented fibres to be used by the manufacturers to produce a variety of diversified jute products in future. 5. Seed requirement India, Bangladesh, China, Nepal and Myanmar together require approximately 11,000 to 12,000 MT of seed annually for around 1300-1400 thousand Ha of land under jute cultivation. Average land area for jute cultivation in Bangladesh is 5, 00,000 Ha and seed requirement is around 4,500 MT of which about 1,000 MT are for capsularis, 500 MT for kenaf, and 3,000 MT for olitorius varieties. Seeds of capsularis variety and a small amount of olitorius variety are locally grown by the individual farmers. Seeds of olitorius variety of about 2,500-3,000 MT and about 500 MT of kenaf seed are imported from India. Bangladesh Jute Research Institute (BJRI) produces the Breeder Seed whereas Bangladesh Agricultural Development Corporation (BADC) is mandated for production and distribution / marketing of certified and truthfully labelled seed (TLS). BADC has six contract growing zones wherein about 600-700 MT of certified / TLS jute seeds are produced and has 100 sale outlets throughout the country. Seeds are distributed / marketed through BADC appointed dealers (about 1945) from 22 Regional Sale Centres on commission basis and from 78 other Sale Centres (District and Upozilla Sale Centres) to the farmers directly at notified prices. Some NGOs are also involved in jute seed production but their contribution is not significant. Thus Bangladesh continues to be dependent on seeds produced in India and marketed by exporters from India through traders in Bangladesh. Since a large part of this trade happens through unofficial channels the mechanisms for supply of Truthfully Labelled Seeds or Certified Seeds is not fully enforced. To minimize the dependency of Bangladesh on imported seed which does not always guarantee quality and timely supply, more farmers need to be encouraged to grow seed to meet their own requirements. Some of these farmers can also take up jute seed production on commercial basis like India. In India about 8, 00,000-8, 50, 000 Ha of land is cultivated for jute and 1, 50,000-2, 00,000 Ha for mesta which requires about 5000 MT of jute and 2,500 MT of Mesta seeds. In India Breeder Seed of jute and mesta are produced by Central Seed Research Station, a wing of

Jute Matters Central Research Institute for Jute and Allied Fibres (CRIJAF). The seed producing agencies like National Seed Corporation and State Seed Corporations arrange registered growers for seed production. When the harvesting of seed is done, the seed certification agencies collect samples for laboratory tests to provide certification. Both public and private sectors in India handle production and marketing of jute seed. Public sector organisations produce and market around 1,500 MT (about 30%) and private sector companies supply around 3,000 MT of seed every year. Unorganised sector infuses the rest of the quantity of seed in the market which include farmer saved seed and farmer-to-farmer exchanges. Seed produced in the public sector in India is distributed to the farmers through State Dept. of Agriculture while the seed produced in the private sector is distributed to the farmers directly and partly through the State Dept. of Agriculture. In India, jute is mainly cultivated in West Bengal and in some areas of Assam, Orissa and Bihar but jute seed is grown primarily in Andhra Pradesh, Maharastra and Karnataka. The Indian farmers like their counterparts in Bangladesh are also apprehensive of timely supply and quality of seeds. Nepal, too, faces the same problem of seed shortage and procures seed from India. National Seed Company of Nepal is the sole agency responsible for certified seed production and distribution but the farmers are reluctant to procure improved seeds because of high prics. Moreover, the demand for jute seed is decreasing due to shift of jute area into rice cultivation. IJSG has been projecting the importance of the issue on various occasions and has submitted a project to CFC for funding on promotion of high yielding varieties of jute seed involving Bangladesh, India and Nepal to address the issues like production and systematic distribution of high yielding variety seeds so that the existing problems faced by the farmers are adequately resolved. IJSG has a Centralised Germplasm Repository (CGR) established at Bangladesh Jute Research Institute (BJRI), Dhaka to conserve jute, kenaf and allied bast plant fibre Germplasm with a duplication of Germplasm in CSIRO, Canberra, Australia. Scientists are working on the characterisation of the Germplasm to develop new varieties. The dependence of Bangladesh, Nepal and Myanmar on Indian seeds is going to remain for some time till efforts in these countries lead to self sufficiency in HYV seed production. IJSG feels that the present scenario can be developed into a long term seed production programme between the producing countries specially in Bangladesh and Nepal to create a win-win situation for all through large-scale private sector investment in HYV seed production by both indigenous and foreign investors. Some big seed growers in India have shown interest in

Jute Matters investing for commercial production of seeds in Bangladesh itself if land is made available on easy lease by the public or the private sources. Unfortunately jute sector is still to evolve the model of organic linkages and symbiotic relationship between industry and farmers like sugarcane, coffee & cocoa, tobacco etc. The growth of tobacco sector in Bangladesh is a glaring example how such relationship can do wonders for a commodity. Tobacco was cultivated in 31,000 Ha of land in Bangladesh in 2005 which rose to 49,000 Ha in 2009 (Ministry of Agriculture, GoB). The tobacco companies take advantage of the situation when the farmers do not get the reasonable price for their crops and provide them with all the inputs for tobacco production on credit. The companies also offer ensured marketing of tobacco leaves at predetermined procurement price. 6. Price of raw jute During the last three seasons (2008-09, 2009-10 and 2010-11) the price of raw jute has increased substantially in Bangladesh and India (Fig. 6 and Table-5).

Export Price of Jute Fibre-Bangladesh

1000 Price (US$/ton) 800 600 400 200 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Bangladesh

Fig.-6: Export price of jute fibre-Bangladesh With the reopening of some closed public sector jute mills and more new jute mills (about 10) being set up in Bangladesh, the mill production capacity will increase and the need for raw jute for domestic consumption would lead to higher local demand and higher market

Jute Matters price. The raw jute price of medium quality jute in Bangladesh was US$ 255.0 per MT in 2003-04, US$ 516.7 per MT in 2008-09 and US$ 788.1 per MT in 2009-10. This upward trend in prices of raw jute may continue because of higher demand for jute and jute products. It has, therefore, become imperative to increase the crop output to meet the requirements of an increasing number of mills and factories and also to retain the export market with guaranteed supply. The higher price of raw jute and jute products, however, in the long run may result into an adverse impact on the export market as it would make jute products non-competitive vis-a-vis synthetics and ultimately resulting in a loss of global market share. It has been observed that the export volumes of raw jute in 2008-09 and 2009-10 in Bangladesh are lower than that in the previous year (2007-08) although the export value has increased (Fig. 7).
R Jute E aw xport
600 500 400 Year 300 200 100 0 2007-08 2008-09 Volume & Value 2009-2010 E xport Volume E xport Value in U $ (in million) S

Fig. - 7: Export volume and export value of raw jute from Bangladesh The situation should not be allowed in any way to grow to a level that it leaves negative impact on the market share of jute products since the lost market is difficult to regain. The high price and low export is a matter of concern for the jute sector in Bangladesh and India, the two largest producers of jute and jute products. The increasing commodity prices including jute and jute products has been a matter of global concern as witnessed during the two recent international conferences at UNCTAD - Global Commodities Forum 2011, Geneva, January-February 2011 and Multi-year Expert Meeting

Jute Matters on Commodities and Development, Geneva, March, 2011. These conferences underlined the fact that while increasing demand and low supply is a general reason for increase in commodity prices, the inadequacy or non-existence of commodity market mechanism is the other big factor. Food and Agriculture Organization (FAO), too, is concerned with inadequacy of existing market mechanism and jute is no exception. In India, the existing jute commodity exchange with its mechanism of future trading has not been able to rationalize the growing prices while in Bangladesh such a formal jute commodity exchange is still to evolve. Industry in both the countries has been sceptical to this idea in spite of the fact that well intended and properly functioning commodity exchanges have played a very positive role in most of the other commodity markets in rationalizing the commodity prices. Jute has been traded in both the countries through existing traditional system dominated by middle level traders known as farias and the system has failed to rationalize the current market prices. Thus this is high time for the respective Governments and the other stakeholders to evolve towards a well managed commodity exchange in future. Till the time an orderly commodity exchange system becomes operational, both Bangladesh Jute Mills Corporation (BJMC) and Jute Corporation of India (JCI) may be entrusted with the responsibility to enter commercial trading for limited purpose of price stabilization at reasonable levels. Buying and selling by BJMC and JCI is likely to trigger as well as bring down the raw jute prices in the market and the respective Governments can play an indirect role through these state agencies to define the reasonable levels. This arrangement will also enable BJMC and JCI to optimize the returns from their surplus storage capacity. BJMC has a number of godowns in each of their mills and also in more than hundred purchasing centres across the jute growing areas. JCI also has more than hundred godowns across the country. So far industry association in India has been resisting such an intervention by JCI since market entry of JCI for commercial purchase will further increase the prices without realising that timely sale of raw jute by JCI in the inflated market can also bring down the prices. Thus the need for limited intervention of both JCI and BJMC in jute trade for limited objective of price stabilization and rationalization and not for profiteering is the only way to arrest present jute price volatility. In order to avoid abrupt fluctuations in the price of raw jute the jute industry may also think of a system of contract growing and a buy-back policy with the farmers in their catchments area which will not only ensure the growers of remunerative price and assured market but it will also diffuse the present market volatility and help protect the interest of the industry.

Jute Matters Table-5: Market Price of TD 5 grade of jute in India US$ / MT Year 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 201002 Maximum 371 Minimum 205 Average 288 03 220 180 200 04 233 181 207 05 373 217 295 06 349 267 308 07 350 242 296 08 336 251 293.5 09 645 322 483.5 10 811 433 622 11(upto Jan11) 872 611 741.5

Minimum Support Price & Average Market price of TD-5 grade of jute in India 800 700 600 500 400 300 200 100 0

2003-04

2009-10

2000-01

2001-02

2002-03

2004-05

2005-06

2006-07

2007-08

2008-09

Minimum Support Price of TD-5 grade of jute in India Average Market Price of TD-5 grade of Jute in India

Fig.-8: Minimum Support Price & Average Market Price of TD-5 grade of jute in India In the context of increasing trend in the price of raw jute since 2007-08, the role of Minimum Support Price (MSP) to farmers has become debatable in India while Bangladesh does not have such mechanism. JCI had no occasion to start MSP interventions since 20072008. The difference between Minimum Support Price (MSP) and Average Market Price of TD-5 grade of jute in India is shown in Fig.8.

2010-11

Jute Matters Thus in the coming years discovering a fair and reasonable price level for jute and jute products in producing and exporting countries is going to become the one of the major challenges for overall growth of the jute economy and global expansion of jute fibre. Industry 7. Mill production The nature of mill production has seen some basic differences in Bangladesh and India. In Bangladesh major production is in the spinning sector (64 mills) while in India most of the mills (78 mills) are composite mills. India is the leading jute goods producing country in the world accounting for 70% of estimated world production primarily because of large number of composite mills. The total production of jute goods is around 16, 00,000-18, 00,000 MT a year with minor variations. The production suffered in 2006-07 and in 2009-10 due to strike in the jute mills. The mills in India produce around 200,000-350,000 MT of Hessian and around 800,000-1150, 000 MT of Sacking. The average domestic consumption of total production is about 85% and exports about 200 300 MT of different jute products a year. Public sector jute mills under Bangladesh Jute Mills Corporation (BJMC) produce on an average 1,50,000 MT of jute products of which about 1,20,000 MT is exported. Private sector jute mills enlisted with Bangladesh Jute Mills Association (BJMA) produce about 1, 50,000 MT of jute products and export around 80,000-1, 00,000 MT. Yarn producing mills under Bangladesh Jute Spinners Association (BJSA) produce around 3,00,000 MT or more of jute yarn annually and export about 2,50,000- 3,00,000 MT mainly to Middle East countries, Europe, USA, etc. Yarn sector in Bangladesh has flourished tremendously over the last decade compared to the composite mills. The closed mills of various countries (Algeria, Italy, France, Belgium, UK, Bulgaria, Brazil, Thailand, etc.) had been relocated in Bangladesh which started production of jute yarns of various counts to meet the requirement of foreign consumers. In 2010 Bangladesh exported about 3, 80,000 MT of jute yarn to various countries, Turkey being the lead importer with 37% of the total yarn export. Composite mills, however, could not fare so well because of shrinkage of export market for hessian, carpet backing cloth, etc. Apparent consumption of jute, kenaf and allied fibres in different countries is shown in Table-6.

Jute Matters

Table-6: Countries with apparent consumption of jute, kenaf and allied fibres (000 MT). 2002 India Bangladesh China Pakistan Turkey Iran Thailand Brazil Ghana Myanmar 1570. 0 170.0 161.9 103.4 70.6 74.0 36.5 16.1 9.3 19.0 12.5 2003 1521. 8 151.0 120.7 112.0 79.7 68.7 36.5 26.4 11.0 19.5 12.5 2004 1588. 9 142.0 137.9 111.1 111.7 73.8 39.0 17.1 15.9 20.0 12.5 2005 1583. 0 170.0 160.9 113.9 101.5 81.0 37.7 29.1 5.3 20.0 13.0 2006 1473. 1 162.0 160.4 122.0 132.2 70.0 41.0 32.3 21.4 20.0 13.0 2007 1751. 4 160.0 194.8 134.4 127.8 65.0 41.5 31.3 15.1 20.0 13.0 2008 2009 Average 1576.9 158.6 160.7 121.7 114.8 70.4 42.4 26.9 13.1 19.8 12.8

(Provisional) 1653. 1473.1 7 156.3 185.9 145.1 153.2 65.2 45.5 32.8 13.7 20.0 13.0 157.1 163.0 132.1 141.7 65.2 61.7 30.1 12.8 20.0 13.0

Over the last few years the production in Pakistan has been relatively stable at 60,000 to 80,000 MT a year of sacking, 15,000 to 25,000 MT of hessians and 10,000 to 18,000 MT of yarn and twine. The overall output of the mills in Pakistan is showing an increase from 95,485 MT in 2002-03 to 137,411 MT in 2008-09 though it is also facing competition from polypropylene bags. The vast bulk of production is sold to markets within Pakistan but some yarn and hessian is exported to Afghanistan, Iran and Middle Eastern-markets. In Pakistan the occasional bans on jute exports from Bangladesh in past few years brought a major shift in their packaging sector since the country switched to synthetic options and used even cotton bags for food grains packaging. In 2004 the harvest of jute and kenaf crop in China was 87,000 MT from 32,000 Ha and in 2009 about 80,000 MT from 30,000 Ha. China imported raw jute of about 65,000 MT in 2004, 126,000 MT in 2007 and 96,000 MT in 2009 primarily from Bangladesh. China now imports jute yarn from Bangladesh and the volume of import is increasing. The import of jute yarn by China was 2,000 MT in 2008-09 and 10,282 MT in 2009-10. China is coming out as an exporter of shopping bags in the world market as reflected in quantum increase in its import of jute yarn.

Jute Matters

8. Modernization of Processing Machinery: As recognized by most studies, modernization would include development and adoption of new generation machinery as jute needs to be processed at a technological level close to that used by other fibres for its survival against the competition from competing synthetic fibres. New machinery need to be designed to process greater volumes, process faster with higher standards, consume less power and be cheaper and easy to maintain. Electronic retrofits need to be introduced in these machines for effective quality control and continuous monitoring. Modern machinery which can be adapted to work successfully with jute are high output spreaders, new design high output Breaker and Finisher cards, high speed & high output drawing frames, ring twisters, shuttle less looms, precision winders, etc. Installation of shuttle less looms like Sulzer, STB, Dornier, ATPR, etc would improve the productivity and quality as well. Ring spinning may be adopted to produce fine yarns which will be subsequently used in making light weight fabrics to be used for making various products like shopping bags, decorative, household items, handicrafts, etc. Establishment of automatic jute bag sewing units would increase the productivity to a great extent. A number of jute mill machinery manufacturers like Lagan Engineering Company Ltd, Milltex Engineering (P) Ltd, GSL, India and Zhejiang Golden Eagle Co., Ltd, China manufacture and supply jute processing machinery to the jute industry of Bangladesh and India. Government of India is currently implementing a project on Jute Technology Mission (JTM) for overall development of the jute sector in India. Under Mini Mission IV of JTM, a Scheme for Machinery Development has been earmarked for technology upgradation in the jute industry. Several mills have taken subsidy benefits under the scheme and have gone mostly for partial replacement and modernization. The scheme is also supporting a modern machinery development program with Lagan Engineering Company and the outcome is still awaited. Jute mills in Bangladesh also require modernization to cope with market requirements and also for production of value added diversified products. BJMC may consider upgrading its factory Gulfra-habib to produce modern machinery in addition to its present production of spare parts.

Jute Matters In spite of its necessity, modernization in jute industry is not taking place at the desired level in both the countries because of non-availability of precision processing machinery at affordable price. Moreover, the machine manufacturing companies are not investing in the R&D for upgrading and producing the new generation machinery because of lack of demand. Jute mills in Pakistan, Nepal and Myanmar are also in dire need for modernization. In Nepal and Myanmar the Governments are said to be thinking of disinvestment in its public sector jute mills which can open new investment opportunities for investors from Bangladesh and India in these countries. The fast growing jute mills in Bangladesh and India can explore the possibility of overseas acquisitions. IJSG is exploring such possibilities and would be keen to facilitate such option as the things unfold in Nepal and Myanmar. 9. Jute Product Mix a) Changing Product Mix: In India jute products mainly include Sacking, Hessian, and Carpet Backing Cloth (CBC). Other jute products such as Floor coverings, Hand Bags, Shopping bags, Wall hangings, and Decorative fabrics are also produced and exported. Production of Hessian fabrics is around 250,000-350,000 MT and domestic consumption is around 200,000-250,000 MT a year. Production of Sacking in 2003-04 was 979,000 MT which increased to 1143,000 MT in 2007-08 with proportionate higher domestic consumption. In 2008-09 and 2009-10 production of jute products was less than that from 2007-08 because production in the mills was disrupted due to strike in the jute mills. CBC production was 4,700 MT in 2002-03 which went up to 6,000 MT in 2007-08. Production and export of diversified products from India is on increasing trend and now constitutes 28 % of total jute product export from India. Although there is little change in Hessian and CBC, the Sacking and diversified sector is showing an upward trend. In Bangladesh jute products include Yarns and Twine, Sacking, Hessian, CBC and diversified products like Shopping Bags, nursery pots, bottle bags, mats etc. Yarn sector in Bangladesh is progressing very well as is evident from the export figures. Export of yarns from Bangladesh was 189,679 MT in 2002-03 while it was 380,000 MT in 2009-10 showing a big jump. The domestic consumption of jute goods in India is given in Fig.-9.

Jute Matters

Fig.-9: Domestic consumption of different jute products in India The mandatory packaging order in India and Bangladesh is a welcome approach as it ensures more domestic consumption and opens up scope for more value addition. However, it has to be carefully monitored that it does not stand as a barrier towards modernization and product diversification. The mill owners that produce sacking and hessian or yarn may feel complacent with a assured market and may not feel encouraged in going for diversification, the area which is going to be necessary for further value addition and expansion of jute sector in future. In Bangladesh the necessary notification for implementing the policy is yet to be published in the official gazette. b) Diversified Products: Besides being used as packaging materials, jute is now widely used as floor covering, home textiles, decorative fabrics, shopping bags, carry bags, handicrafts, cushion cover, curtains, blankets, nursery pots, insulation material, soil saver and jute based composites, etc. Bangladesh, India and China export jute diversified products (JDP) like Floor Covering, Hand bags, Shopping Bags, Decorative Fabrics, Wall Hangings, Gift Articles, etc. Exports of JDP from India have been showing an increasing trend. India exported JDP of value US$

Jute Matters 56.39 m in 2004-05 and US$ 65.46 m in 2008-09 (Fig.-10). Share of JDP export to all jute goods export by India was 22% in 2004-05, 26% in 2007-08 and 28 % in 2008-09.
E p rt v lu o Ju D e ifie P d c fro In ia x o a e f te iv rs d ro u ts m d 8 0 million US$ 7 0 6 0 5 0 4 0 3 0 2 0 1 0 2004-05 2007-08 0 2008-09 2005-06 2006-07

Fig.-10: Export value of Jute Diversified Products from India Export value of Hand Bags & Shopping Bags from India was US$ 36.82 million in 2008-09. In Bangladesh no separate figure for shopping bags is available which is shown in the other jute products category that includes mats, floor coverings, decoratives, wine bottle bags, nursery sheets etc. The export figure shows that in 2008-09 Bangladesh exported 1970 MT of these products of value US$ 2.3 million. The figures about China are not available but the trend is continuously rising. The upward trend of export of JDP indicates that JDPs are receiving appreciation from the foreign consumers. Promotional activities such as participation in International Fairs and Exhibitions on the patterns of mainstream textile sector may be useful as this would make the consumers familiar with various jute products and their applications and the source of their availability. Organizing standalone jute Fairs by producing countries may also be considered which will be very useful. The Jute mills can also get involved and promote JDP sector by supplying yarns and fabrics necessary for production of JDP to medium and small entrepreneurs as a constant source for their market. The mills will get a local market and production of JDP will increase. The JDP production could also be enhanced and organized

Jute Matters by forming cooperatives or Self-Help Groups with the small entrepreneurs of the unorganized sector. IJSG has recently implemented a project on Small-Scale Entrepreneurship Development in Diversified Jute Products through which a large number of small entrepreneurs about 1150 in India and about 1420 in Bangladesh have been trained to develop and produce diversified jute products and many of them have already started production and sale of various jute products in the local as well as the foreign markets. Through this project some Raw Material Banks (RMB) and Jute Entrepreneurs Service Centres (JESC) have been established both in India and Bangladesh which encourage the new entrepreneurs to start producing and marketing the diversified jute products. This is in addition to the efforts by producing countries through their own organizations like Jute Diversification Promotion Centre (JDPC) in Bangladesh and National Jute Board (NJB) in India. 10. Future Growth areas that need attention for promotion 10. a. Shopping Bags Manufacturing and export of jute shopping bag is an important area that needs attention of the policy makers as well as the manufacturers. Jute has established itself as the most versatile and economically viable alternative to polythene and other synthetic products. The adverse impact of polythene bags resulting into environmental degradation has made people inclined to use more natural fibre products. As a consequence of adverse impact of polythene on the environment many countries around the globe including Bangladesh, India and others have already taken regulatory measures to reduce the use of polythene bags. UAE has decided to completely ban the use of polythene bags by 2014. Several other countries like Ireland, Thailand, Japan, and some States in USA, Denmark and Norway have already taken such steps to discourage use of polythene bags in some form or others. These measures include from complete ban on polythene bags to taxing the use of synthetic bags (plastitax in Ireland) and some other mix of incentives and disincentives. Steps taken by the producing countries to supply jute bags so far are quite inadequate to meet the requirements at a competitive price. A long term plan aiming at large scale production and supply of shopping bags needs to be drawn up to produce huge quantities of jute bags and make them easily available to the consumers.

Jute Matters It has been estimated that annual world demand for shopping bags is approximately 500 billion pieces whereas the supply of jute shopping bags is almost negligible in comparison. If this demand could be met by light weight jute shopping bags weighing 15 gm, the annual raw jute requirement will be about 7 MT which is more than double the current total raw jute production in the world if only one bag is used per week per family. The table-7 below shows the type of bags with carrying capacity and estimated cost per piece. If a 3 kg or 5 kg capacity bags are used the raw jute requirement will be much higher. It goes without saying that by promoting jute shopping bags around the world the sector could flourish and more labourers / workers would find job in producing and manufacturing countries where unemployment is a major problem. Table-7: Type of jute bags, size and costs Type of bags Low cost Size light 10 cm X 25 cm and 35 cm X 25 cm Average weight 15 g Total required 7 million tons jute Estimated cost(US$)

shopping bags Conventional shopping bags of CBCa. 3 Kg capacity b. 5 Kg capacity c. 10 Kg capacity

35 cm X 26 cm 39 cm X 32 cm 50 cm X 38 cm

55.9 g 73.8 g 93.3 g

29.65 million tons 0.202 39.1 million tons 0.236 49.45 million tons 0.325

Big jute mills and BJMC and IJMA can take steps for manufacturing of jute shopping bags as one of their commercial product lines. Similarly the small entrepreneurs can join hands and form groups and approach a big mill to supply required raw materials to store it in existing or new Raw Material Banks (RMB) which can be set up by the associations of JDP manufacturers. Mills should open Warehouses in various parts of the country to supply to the RMBs. Thus a number of warehouses and Raw Material Banks (RMB) in different zones of the country may be opened under this arrangement. Government subsidy in some form may act as a catalyst in promoting the growth of such Warehouses and the RMBs. The Warehouses will feed the Raw Material Banks which, in turn, will supply to clusters of entrepreneurs. This will boost the production of shopping bags and ultimately will justify and successfully implement the ban on polythene bags by making

Jute Matters the alternative bags readily available. Such a growth model can become a vehicle for additional employment generation in countries like Nepal, Pakistan, Vietnam, Myanmar etc. apart from Bangladesh and India. Each entrepreneurs would employ a number of workers, artisans particularly women for manufacturing shopping bags and different diversified products of jute. This may pave the way for the development of JDP sector on the pattern of ready made garment (RMG) sector in Bangladesh and India. The proposed production and export model in Fig.-11 explains how the different sectors in the production, manufacturing and exports can be organically linked to create a win-win situation for all the stakeholders. This phenomenon is happening at present in a limited way and without much organic relations between the different players. Mills, both in Bangladesh and India, except for few exceptions, have not been very enthusiastic to such diversification because of their present assured markets. The Government agencies like the National Jute Board (NJB) in India and JDPC in Bangladesh should step into this process to catalyze the development of JDP sector to realize benefits of higher value addition. In India, NJB has been implementing some schemes for promotion of this JDP sector under which financial assistance is being given for setting up new units, hiring market outlets and also for participation in international fairs. Scheme has been giving positive results as reflected in rising export of shopping bags.

Jute Mill

Warehouse

Warehouse

Warehouse

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

Entrepreneurs

Entrepreneurs

Entrepreneurs

Direct Export to buyers

Export through cooperatives, self-help groups, NGOs

Export through industry

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Fig.-11: Development of entrepreneurs and employment generation 10. b. Food Grade Jute Bags Food Grade Jute Bag is another important jute product which needs vigorous market promotion as it provides hydrocarbon contamination free jute bags for storage and transportation of food items. According to International Cocoa Organizations (ICCO) latest estimate the requirement of food grade jute bags is 32 million bags which will rise with the higher production of cocoa that is witnessing constant annual growth. The supply of food grade jute bags from Bangladesh and India is about 12 million bags. Sisal bags are also being used in transportation of cocoa. Over 100 million (60 kg) bags of Coffee are now produced in over 70 countries throughout the world which need as many bags for transportation. A recent study on Sustainable
Sale of sustainable green coffee Sustainable Market, 8.7

Conventional Market , 91.3

Sustainable Market

Conventional Market

Fig.-12: Sales of sustainable green coffee

Jute Matters

Markets: A (Challenging) Opportunity for Sustainable Development by Jason Potts (UNCTAD Global Commodities Forum 2011) shows that sustainable markets of some food items like coffee, cocoa and banana are entering the mainstream markets. The sustainable coffee has already attained a market share of 8.7% of global green coffee exports and reached from 65,000 MT in 2004 to 1, 85,000 MT in 2009 (Fig.-12) Through sustainability initiative the export of sustainable cocoa reached from 8,000 MT in 2000-01 to 45,000 MT in 2008-09 indicating a steady growth. The growth of Cocoa and Coffee would create more demand for food grade jute bags, which may, in turn, further add to the growth of jute as a sustainable commodity. Renewed interest of Brazilian industries in their capacity expansion is evidence of this high growth market. Because of increasing demand for these commodities there is tremendous scope for jute industries in Bangladesh, India and also Pakistan to regain and expand the food grade jute bags market in the Cocoa and Coffee producing countries. IJSG is in touch with the Coffee and Cocoa Associations and would like to work with the national governments and the industries in producing countries to strengthen and consolidate this potential market.

10. c. Jute Geo-textiles Geotextiles are materials that are used to increase stability and decrease wind and water erosion. Jute geotextile is one of the most important diversified jute products with a potentially large-scale application. JGT has some inherent advantages over its synthetic counterparts like high moisture / water absorbing capacity, excellent drapability, high initial strength, biodegradability, easy availability and environment friendliness. JGT can be used to perform functions like filtration, separation, drainage, reinforcement, stabilization / consolidation of soft soil etc. in an effective manner. It can have several applications in soil erosion control, soil consolidation, agro-mulching, protection of riverbanks & embankments, land reclamation and in road pavement construction. JGT can promote growth of vegetation by exerting mulching action, adding nutrients to the soil and augmenting its permeability. The demand for jute geotextiles is increasing in various parts of the world. However, absence of adequate awareness and lack of standards and specifications regarding product

Jute Matters specifications, its life cycle and its disposal protocol analysis seem to be adversely affecting the possible expansion of the market. An analysis (Jute Basics-International Jute Study Group) of the broad consumption pattern of different geo-textiles in the year 2000 shows that synthetic materials account for 94 %, jute 1 % and other natural fibres 5 % of the total geotextiles market. The total consumption of geo-textiles of all categories was 1400 million sqm in 2000-01. The aggregate demand had increased to 1621 million sqm in 2002. Presently the market for geo-textiles is estimated at about 5300 million sqm (Fig.-13). Based on current projections, it is estimated that by 2014, a 10% market share for jute geo-textiles may be considered realistic which would need 250,000 - 300,000 tons of jute.

Quantity of Geo-Textiles consumption in million sqm

1400 2000-01 5300 1621 2001-02 2009-10

Fig.-13: Quantity of geo-textiles consumption in million sqm It has been found in an earlier study conducted by Silsoe College, Cranfield University, UK during the erstwhile IJO that jute geo-textiles are suitable for rural road construction, soil erosion control and agro-plant mulching. IJSG is currently implementing a project on Jute Geo-textiles (JGT) involving Bangladesh, India and UK with the funding support from CFC. Under the project activities JGT would be used in rural road construction, protection of hill slope and river banks & embankments. Specifications will be developed and effectiveness of jute geo-textiles would be standardized for use in various parts of the world In India there has been a good number of field trials of jute geo-textiles in the past and under the Prime

Jute Matters Minister Gramin Sadak Yojna (PMGSY) 20% of rural roads are to use jute geo-textiles to strengthen the roads. The Railway budget 2011-12, too, envisages compulsory use of jute geo-textiles in laying of some rail tracks in India. The Government intervention is extremely necessary to induce use of jute geo-textiles in various applications in the producing countries. Bangladesh Government, too, can think of taking such initiative not only for promotion of jute sector but also for better durability of rural roads. It has been established by several earlier studies that some additional cost on use of jute geo-textiles is made up by increased life of the roads. The limiting factors for the growth of jute geotextiles sector, however, remain in the form of lack of standardization, eco-parameters, disposal parameters and adoption in public sector projects. The project under implementation by the IJSG will remove most of these limitations but the national governments and the industry in the jute producing countries have to look forward towards the sector in a proactive manner. 10. d. Traditional Jute Products: Floor Coverings, Carpet backing cloth, Sacking From the conventional carpet backing cloth, jute has moved up the value chain and is being used for making attractive floor coverings. Consumer preference is also shifting away from synthetics to natural floor coverings. Jute floor coverings include woven tufted and piled carpets, rugs, runners, floor mats, matting, braided carpets, durries etc. of jute alone or blended with other textile fibres. The traditional Satranji carpet is becoming very popular for home dcor in Bangladesh and also abroad. The world demand for jute floor coverings was 7.7 million sqm in 2002 while the world demand for flooring and carpets is estimated to grow 5.0 percent annually through 2014 to 15.3 billion square meters. USA has been the major importer accounting for 54% of the total world imports demand. The USA market for carpets and rugs is projected to rise only 1.6 percent per year through 2011 to over 2.1 billion square meters but will still account for 65 percent of the floor covering market. Europe is the second largest consumer (19%). Recent information indicates India as the major supplier of jute floor coverings catering to 90% of the total world import demand. This item needs further promotion. Future demand of these products will be driven by acceleration in world residential building construction activity, supported by an upturn in spending in industrialized countries such as the US, and by healthy consumption environment in a number of middle income and

Jute Matters developing countries. Renewed growth in automobile sector is also likely to contribute to overall growth of jute flooring and carpet market. China alone is estimated to account for 38 percent of all additional sales by 2014 (www.news.wooeb.com, 2011) strengthening its position as the largest flooring and carpet market in the world in terms of square meters. Growth is also expected to be healthy in lower-volume markets like Ukraine, India, Vietnam, Turkey and Thailand. Although increases will generally be not as strong as in North America or developing parts of the world, floor covering demand in Japan and Western Europe is likely to be positive. 10. e. Jute Composites Natural fibres particularly jute has been found to be useful in making bio composite materials. This can have wide-ranging applications ranging from environment-friendly, biodegradable composites to biomedical composites for drug delivery and tissue engineering applications. Current applications for natural fibres reinforced composites can be classified into two main areas- Construction and Automotive although there are a number of more niche applications such as manufacturing of musical instruments, house hold items, furniture, etc. Almost all the major car manufacturers in Germany use natural fibre composites. A study conducted in 1999 (Nonwoven Structures for Applications as Automotive Component Substrates, by G C Ellison & R McNaught in 200) indicates that there is scope for about 20 kg of natural fibres to be used in each of the approximately 53 million vehicles being produced globally each year. Even if 5-10 kg natural fibre is used per vehicle then 265000530000 tons of natural fibre would be required and jute is the most suitable fibre to meet this demand. Jute based composites are also emerging as a true substitute of wood and plastic automobile structures. Renowned car manufacturing companies like Mercedes Benz, Daimler-Chrysler, Germany; Toyota, Japan; Ambassador Suzuki-Maruti, India; Hyundai, Korea and Proton, Malaysia etc. are using jute based composites in making different molded body structures in their different automobiles to make them more eco-friendly. Other products that are presently being produced from jute based composites are sheets/boards, doors, window frames, furniture, corrugated sheets and chequered boards, etc. Jute based composites may be considered as a focused area of development as it holds the prospect of an entirely new application areas leading to future development and an increased

Jute Matters market share for jute. It also paves the way towards growth of an entirely new market where the raw material does not enter into traditional industrial production system through processing but finds direct industrial application at the stage of raw jute in the form of jute cuttings. This is a very positive growth signal for farmers to grow more jute in areas having scarcity of water for retting. IJSG has implemented a project on Jute Reinforced Polyolefines for Industrial Applications through which the technologies for production of Jute-Polypropylene granules have been developed and with those granules a number of products like electric extension cable cover, car parts, house hold items, step of a lorry, etc .have been produced in Bangladesh and India. IJSG is trying to demonstrate the feasibility of the technology but not succeeded in getting actual investment in spite of tremendous commercial possibilities of the technology. Jute industries need to have a fresh look at this investment opportunity. Jute Particle Boards Particle boards made from jute sticks find wide applications as substitutes for wood. Particle Boards in different size, shapes, thickness, design, colour and fashion are available in the market for use as a raw material for furniture, home decoration such as tables, chairs, garden tables, door frames, cans, and containers etc. as a substitute of wood and plastic materials. The availability of the technology for the production of particle boards and its high socioeconomic value are in favour of the future development of this jute product. Use of jute particle boards has been found to be quite acceptable both in terms of quality and price. This is an area for future investment and needs to be promoted by the Governments in the jute producing and manufacturing countries.

Bioplastics
(The Myth and Reality of Biodegradation) Bioplastics or organic plastics are becoming popular with time. It is a form of plastics derived from renewable biomass sources, such as vegetable oil, corn starch, pea starch, palm oil etc. Some, but not all, bioplastics are designed to biodegrade. Starch-based plastics constitute about 50% of the bioplastics market and are used for drug capsules in the pharmaceutical sector. By varying the amounts of flexibilisers and plasticisers starch can be processed thermo-plastically and the characteristics of the material can be tailored to specific needs.

Jute Matters Similarly the cellulose based plastics; the cellulose esters like cellulose acetate, nitrocellulose could also be produced. Bio-derived polyethylene is chemically and physically similar to traditional polyethylene - it does not biodegrade but can be recycled. It can also considerably reduce greenhouse gas emissions. Brazilian chemicals group Braskem claims that using its route from sugar cane ethanol to produce one ton of polyethylene captures (removes from the environment) 2.5 MT of carbon dioxide while the traditional petrochemical route results in emissions of close to 3.5 MT of CO2. The production and use of bioplastics is generally regarded as a more sustainable activity when compared with plastic production from petroleum because it relies less on fossil fuel as a carbon source and also introduces fewer, net-new greenhouse emissions if it biodegrades. They significantly reduce hazardous waste caused by crude oil-derived plastics, which remain solid for hundreds of years. It has opened a new era in packing technology and industry. As commonly understood, bio-plastics are plastic materials produced from a biological source. One of the oldest plastics, cellulose film, is made from wood cellulose. All (bio- and petroleum-based) plastics are technically biodegradable, meaning they can be degraded by microbes under suitable conditions. However, many degrade at such slow rates as to be considered non-biodegradable. The degree of biodegradation varies with temperature, polymer stability, and available oxygen content. Consequently, most bioplastics will only degrade in the tightly controlled conditions of industrial composting units. Traditional plastics such as polyethylene are degraded by ultra-violet (UV) light and oxygen. To prevent this process manufacturers add stabilizing chemicals. However with the addition of a degradation initiator to the plastic, it is possible to achieve a controlled UV/oxidation disintegration process. There are also concerns that bioplastics will damage existing recycling projects. Packaging such as HDPE milk bottles and PET water and soft drinks bottles is easily identified and hence setting up a recycling infrastructure has been quite successful in many parts of the world. Because of the fragmentation in the market and ambiguous definitions it is difficult to describe the total market size for bioplastics, but estimates put global production capacity at 327,000 tonnes. In contrast, global consumption of all flexible packaging is estimated at around 12.3 million MT.

Jute Matters COPA (Committee of Agricultural Organisation in the European Union) and COGEGA (General Committee for the Agricultural Cooperation in the European Union) have made an assessment of the potential application of bioplastics in different sectors of the European economy: 1) Catering products: 450,000 MT/year; 2) Organic waste bags: 100,000 MT/ year; 3) Biodegradable mulch foils: 130,000 MT/ year; 4) Biodegradable foils for diapers 80,000 MT/ year; 5) Diapers, 100% biodegradable: 240,000 MT/ year; 6) Foil packaging: 400,000 MT/ year; 7) Vegetable packaging: 400,000 MT/ year and 8) Tyre components: 200,000 MT/ year totaling 2,000,000 MT/ year. In the years 2000 to 2008, worldwide consumption of biodegradable plastics based on starch, sugar, and cellulose - so far the three most important raw materials - has increased by 600 %. The National Non-Food Crops Centre (NNFCC) predicted global annual capacity would grow more than six-fold to 2.1 million tonnes by 2013. BCC Research forecasts the global market for biodegradable polymers to grow at a compound average growth rate of more than 17 percent through 2012. Even so, bioplastics will encompass a small niche of the overall plastic market, which is forecast to reach 500 billion pounds (220 million MT) globally by 2010. With the exception of cellulose, most bioplastics technology is relatively new and is currently not cost competitive with petroplastics. However, in certain special applications bioplastics are already unbeatable because pure material costs form only a part of the entire product costs. For example, medical implants made of PLA, which dissolve in the body, save patients from a second operation. The market of bio-plastics and bio-polythenes is fast growing since plastic and polymer industry in developed countries have been able to promote it as the more eco-friendly option to petro-based products. This growing trend is fast taking over a sizeable part of the market share of natural fibres, especially jute. This bio-plastics route, however, directly uses many food crops for its origin which will become a limiting factor in its future growth beyond a point because of global pressure of ensuring food security. Natural jute bags obviously remain the best available option but needs to compete with these products in future. The issue involves the need for generic promotion of jute and creating the knowledge and the awareness that jute products are much more natural and sustainable than any bioplastic or bio-polyethylene. Recently a technology has been developed by the Institute of Tropical Forestry and Forest Products (INTROP) of the University of Putra Malaysia to make Bio-plastics with starch and

Jute Matters kenaf. This technology can be used in making bio-plastics with jute and starch which may lead to a very important new application of jute in future. The bio-plastic industry should explore this option to become even more eco-friendly and reduce its dependence on food crops. IJSG is intending to popularize this technology in association with INTROP. 10. f. Pulp and Paper The demand for pulp and paper is increasing globally and is expected to grow further. According to a paper demand and supply study published by the global consulting group Jaakko Pyry, Finland, world demand for paper and paperboard has grown rapidly over the years, reaching a record level of 359 million tons in 2004 from 300 million tons in 1999 and is estimated to grow by 2.1% annually in the long term, reaching an estimated 490 million tons by the year 2020. A drastic reduction in the supply of wood and bamboo pulp the world over coupled with increasing concerns regarding reduced forest resources have forced many countries to search for alternatives for making paper from so called tree free pulp. Jute and kenaf plants are annually renewable resources and have been found to be an excellent raw material for making good quality pulp and paper. IJSG has recently implemented a project on Biotechnological Application of Enzyme for making paper pulp using jute/kenaf as a raw material (the whole plant). The technologies for biopulping and biobleaching for making pulp and paper from whole jute/kenaf plants as well as from jute fibre and jute sticks have been developed under this project. It has been found that energy requirement under this technology will be about 30% less than the conventional process. It has also been found that mechanical pulping is suitable for making newsprint grade paper with jute/kenaf. IJSG has a plan to carry out a techno-economic feasibility study on the findings of the project so that the entrepreneurs could be convinced about the viability of industrial production of pulp and paper using jute/kenaf plants as raw material. It may be mentioned here that retting of jute plants is a major problem in the water scarce area. A section of farmers would be benefited if the raw jute plants could be sold as such without the retting, extraction, washing and drying processes which are both cost and labour intensive. It may be cited here that Maubin Paper Mill of Myanmar has been producing 5,000 MT of paper a year consisting of 2,500 MT of writing and 2,500 MT of offset printing paper using dried jute plants raw materials. There is another paper mill in Myanmar that uses kenaf plants

Jute Matters as raw material which indicates the suitability and viability of jute/kenaf being commercially used as raw material for making pulp and paper. This possibility needs to be explored by the jute industry and also the producing country Governments. It has been reported that the Government of Bangladesh is considering reopening of the North Bengal Paper Mills (NBPM) to be operated on jute pulp as raw material. It is a very welcome development for jute sector. Jute Trade 11. Export of Jute and Jute Products:

11. 1 World Export of raw Jute World export of raw jute in 2008-09 and 2009-10 appears to be lower than those of previous three years (Table-8). Bangladesh is the only major raw jute exporter accounting for 90-95% of total raw jute export. The export of raw jute from Bangladesh in volume terms has gone down which may be attributed to the fact that recently the Bangladesh Government has taken steps to open some of the closed public sector jute mills because of which domestic consumption of raw jute has increased. The temporary ban on export of raw jute from Bangladesh in 2009-10, and the high prices of raw jute since last few years are responsible for low export volume. The export by the developed countries has also decreased drastically since 2008-09 due to high price. It indicates that the jute traders in the developed countries are becoming less active due to high prices and uncertainty in the supply system. Table-8: World export of raw jute, kenaf and allied fibres (in '000 MT) 2000World Bangladesh China Myanmar Thailand Developed Countries 20012002200320042005200620072008200901 02 03 04 05 06 07 08 09 10 307.4 304.9 473.0 374.2 343.3 468.7 467.1 523.2 326.7 325.5 279.8 253.9 453.4 342.9 306.7 440.5 439.7 495.0 314.9 315.0 2.2 2.0 1.3 1.0 0.6 0.3 0.1 0.2 0.6 0.1 10.0 30.6 4.1 16.9 13.7 5.6 9.0 0 0 0 1.8 1.1 1.1 1.1 1 1.1 0 0 0.1 0 8.2 5.6 12.8 16.5 10.8 10.9 16.8 16.1 14.6 23.4 8.2 5.6

Jute Matters 11.2. World Exports of Jute Products World export of jute products in volume terms in 2008 and 2009 appears to be somewhat static although lower than those in 2005 and 2007 (Fig. 14 and Table 9). In case of export of Bangladesh jute products the scenario is a little different and encouraging as the export in 2009 has increased to 560 thousand tons which is 16.7% higher than the previous year. Export of jute products by India shows an increasing trend as it exported 177.8 thousand MT in 2000 and 207.6 thousand MT in 2008, an increase of 16.8% during the last 8 years. Export by Europe and Thailand has a declining trend while export by Nepal and China shows an increasing trend. China is now exporting jute shopping bags to various countries reflected in its increasing exports. Exports from India also show a declining trend except in the year 2008. The increase of export of jute products by China is due to initiative taken by China to become a major manufacturer and exporter of jute shopping bags to different countries. This is a good sign for the jute sector as a whole since the manufacturing capacities of China are well known to capture the market which is likely to sustain the demand of jute products in global market. At the same time, however, this trend is a matter of concern for JDP manufacturers in both India and Bangladesh since the JDP manufacturers in these countries need to reposition themselves for such a formidable future competition. With the growing awareness about pollution free environment natural fibres products made of jute are going to have a huge potential market and this growth prospect seems to have been fully captured by China. IJSG feels that it is high time to launch a generic promotion of jute and allied natural fibres by way of holding international seminars, exhibitions, buyer-seller meets and even jute specific international exhibitions along with simultaneously increasing production capacities, establish reliable supply mechanism to cash on the global ecoenthusiasm.

Jute Matters

World Export of jute products

900 800 700 600
'000 Tons

500 400 300 200 100 0 2000 2001 2002

World

2003

2004

2005
China

2006

2007
India

2008
Europe

2009

Bangladesh

Fig.-14: World export of jute products Table-9: World Exports of Products of Jute, Kenaf and Allied Fibres (in '000 Tonnes) 2000 World Africa El Salvador Turkey Bangladesh China India Nepal Pakistan Thailand USA 643. 8 1.3 0.1 0.3 378. 0 6.5 177. 8 10.0 7.2 2.1 2001 649. 9 4.4 0.2 0.2 409. 2 11.2 151 10.0 8.3 1.8 2002 680. 3 2.5 0.1 1.0 400. 6 11.1 189. 9 10.0 7.3 2.6 2003 729. 5 2.3 0.1 3.7 391. 9 15.9 243. 8 10.0 9.1 7.9 2.1 2004 748. 1 2.6 0.3 4.2 439. 4 16.1 193. 0 13.0 14.5 6.3 1.4 2005 800. 3 2.6 0.3 6.4 476. 0 7.6 208. 1 13.0 18.9 6.3 1.6 2006 774. 1 3.0 0.3 4.3 478. 9 18.5 189. 5 13.0 17.1 3.4 1.2 2007 832. 7 3.0 0.3 5.7 549. 7 21.1 175. 6 13.0 15.1 2.8 1.9 2008 773.0 3.0 0.3 5.1 480. 0 12.6 207.6 13.0 6.1 1.5 1.8 2009
(provisional)

768.0 3.0 0.1 4.4 560.0 16.8 135. 17.4 10.0 0.9 3.4

Jute Matters Europe BelgiumLux France Germany Netherland s UK 52.3 26.6 3.7 5.4 6.5 5.1 44.1 20.9 2.0 5.3 4.8 5.7 48.1 19.2 2.3 5.2 9.5 5.8 39 18.3 1.6 5.2 3.2 4.5 52.4 25.4 1.7 4.9 5.1 5.9 55.6 27.2 1.3 6.0 5.6 6.6 42.2 19.6 0.5 6.4 4.3 4.3 41.4 22.2 0.5 4.9 4.1 3.0 21.1 11.1 0.2 3.7 2.0 1.7 17.6 10.3 0.3 1.9 1.0 1.4

12. Import of Jute and Jute Products: 12. 1. Raw Jute Pakistan, India, China, Thailand, Europe and Ivory Coast are the major importers of raw jute mainly from Bangladesh (Table-10 and Fig.-15). The world import of raw jute in terms of volumes in 2009 shows that it has gone down by 5.5% from import in 2008 and by 18.8% from import in 2007 and the world import of jute products also has gone down by 11.47%. The world import was highest in 2007 (512.7 thousand MT) when import by China was 125.7 thousand MT, an increase of about 42% from the previous year. Import by Brazil was 11,000 MT in 2001 which has gone down to only 1,800 MT in 2009 indicating a sharp fall. In fact Brazil has started growing jute to meet part of its domestic requirement. The three big jute companies in Brazil are responsible for production of substantial part of jute bags required for storage and transportation of Coffee and Cocoa beans produced in Brazil. Brazil produces about 1, 50,000 MT of Cocoa and 30,000-35,000 bags (60 kg) of coffee beans every year that are transported in jute bags. It has imposed anti-dumping duty on import of jute bags (with an exception to only a few overseas industries) to protect its own industries. Brazil also takes the advantages of LAFTA (Latin American Free Trade Agreement) in its efforts to export some of its jute products to neighbouring countries. Import of raw jute by Europe was 24,900 MT in 2001 which has come down to 15,900 MT in 2009, a reduction of about 36% in 8 years. The reduction of import of raw jute by Europe is due to the fact that no jute yarn and twine spinning mills and composite jute mills are left in Europe except two small units in Rumania which, too, are gradually switching to importing jute yarns/twines. Also, European companies that used to tease jute cuttings for making felt and materials for manufacture of composites have virtually ceased to exist under the competition from low cost production in Bangladesh. The reduction of jute imports is also related to the lower production in 2004-05 in Bangladesh and India due to flood and also due

Jute Matters to partial ban on exports by Bangladesh in 1984 and in 2010.The volatility in the prices of raw jute has also been a factor in decline of imports by European buyers. Import of raw jute by Pakistan was showing increasing trend but was reduced by 20.8% in 2009 from that of the previous year due to short supplies from Bangladesh. Pakistan exports jute products to countries like Iran and other middle-east countries. The Indian import of raw jute was up by about 50% and Thailand import was up by 59% in 2009 from the previous year. Import by Cote dIvoire is more or less steady which is around 10,00012,000 MT a year. Import by Saudi Arabia is showing the increasing trend. Import by Saudi Arabia was only 300 MT in 2001 which increased to 3500 MT in 2009 and 4100 MT in 2008. Import by Tunisia is also on the increasing trend reaching 3500 MT in 2009 from just 200 MT in 2001. These increases are due to declining use of synthetics. The import by El Salvador is almost steady at about 800 MT a year. During the last 10 years the import by Egypt has decreased substantially from 6200 MT in 2001 to 800 MT in 2009 due to preference for cheaper synthetic alternatives. Import by Iran also has decreased from 5900 MT in 2001 to 1000 MT in 2009 due to international embargo. Import in USA was only 500 MT in 2001 which increased to 1700 MT in 2009 after attaining its peak in 2008 when it was 3500 MT. Import in Europe maintains a declining trend with 24900 tons in 2001 and only 15900 MT in 2009 which is less by about 36%. The global import trend of raw jute seems to be on the higher side compared to previous years with an exceptional growth in 2007 which shows all time highest import as a result of global economic upswing and increased global environmental awareness. The trend, however, could not be sustained due to increased domestic demand in producing countries, reduced production and temporary ban on raw jute export from Bangladesh resulting in high export prices. It is observed that in 2007 the world production of jute, export of jute products and import of jute were highest. Table-10: World Imports of Raw Jute, Kenaf and Allied Fibres (in '000 MT) 2001 279. World Cote d'Ivoire 0 12.1 2002 337.3 24.2 2003 385.5 15.2 2004 331.3 6.9 2005 380.1 12.9 2006 343 12.0 2007 512.7 7.5 2008 2009 440. 416.2 3 12.7 10.0

Jute Matters Ethiopia Nigeria Tunisia Egypt Brazil El Salvador Cuba Asia Iran Saudi Arabia Turkey China India Indonesia Pakistan Thailand United States Europe Belgium-Lux Germany Netherlands Spain UK Other Europe Oceania Australia Japan
600 500
'000 tons

3.0 0.2 0.2 6.2 11 0.8 0.3 5.9 0.3 0 7.2 69.3 3.8 78 38 0.5 24.9 5.0 2.6 0.5 4.1 5.3 2.2 2.8 2.8 2.6

2.4 0.1 1.5 1.3 4.0 0.1 3.0 2.3 0.3 2.7 41.1 110.4 2.3 90.9 15 0.3 20.0 3.4 1.5 0.5 4.4 4 2.8 2.4 2.4 2.1

5.4 0.1 1.2 1.0 13.8 1.0 3.0 1.8 1.8 0.1 34.3 144.2 2.2 89.2 36.7 0.3 19.1 4.0 1.3 0.4 5.4 2.8 1.5 2.1 2.1 1.0

5.0 0.1 0.8 1.7 1.9 0.7 3.0 1.3 1.9 0.1 65.1 62.3 2.4 129.4 17.6 0.9 16.6 3.8 1.9 0.7 3.3 0.3 1.5 1.5 1.5 1.2

5.0 0.1 0.9 1.5 0.2 0.8 3.0 1.0 1.9 0.2 82.2 97.5 2.2 128.5 6.3 2.5 17.0 2.9 2.0 1.4 1.5 2.4 2.1 2.3 2.3 0.7

5.0 0.1 0.9 1.6 2.1 0.8 3.0 1.0 0.8 0.2 88.6 60.3 2.2 115. 8 15.6 1.6 15.3 1.1 1.3 1.3 1.3 2.5 2.3 1.5 1.5 0.9

5.0 0.1 1.7 0.3 0.2 0.7 3.0 1.1 1.0 0 125.7 162.7 2.6 126.4 23.3 3.6 23.2 2.4 3.3 0.3 1.4 6.3 2.5 1.5 1.5 0.7

5.6 0.1 1.4 08. 1.7 0.9 1.7 1.0 4.1 0.1 114.

3.7 0.1 3.5 0.8 1.8 0.8 1.8 1.0 3.5 0.0 95.7

2 68.7 102.9 5.5 2.2 143. 113.7 6 11.0 3.5 23.5 1.1 1.7 0.1 1.3 11.3 2.5 1.4 1.4 0.5 17.5 1.7 15.9 1.0 1.9 0.1 0.8 4.5 2.2 1.5 1.5 0.5

W orld Im port of Jute Fibre

400 300 200 100 0 2001 2002 2003

W orld

2004

2005
P istan ak

2006

2007

2008
India

2009

C hina

Jute Matters Fig-15: World import of Jute fibre 12. 2 Jute Products Import of jute products by Africa has gone down in 2009 by about 15 % from the previous year. However, import by Ghana is on the increase from 5000 MT in 2000 to 12,000 MT in 2009 due to more import of food grade jute bags (Table-11 and Fig.-16). Iran, Syria, Turkey, Saudi Arabia, Australia and Indonesia are the major importers of jute products. Turkey imports a lot of jute yarn from Bangladesh to produce carpets, prayer mats, etc. Import of jute products by Europe has decreased remarkably during the last ten years for reasons of non conformity of stipulated product standards and lack of regular and timely supply by the product manufacturers. It was 207,900 MT in 2000 but only 79,200 MT in 2009. Import of jute products in North America has also gone down sharply. It was 70,700 MT in 2000 with only 28,400 MT in 2009. Import of jute products in Japan also shows a decreasing trend. It was 24,000 MT in 2000 but only 14,200 MT in 2009. Import by Sudan was 30,000 MT in 2000 which has come down to only 1,000 in 2009. However, import in Indonesia, Malaysia, Thailand and Korean Republic is showing an upward trend. Indonesia imports food grade jute bags for cocoa transportation and Korea is producing jute base composites for making moulded automobile structures. The shrinkage of the jute products market in Europe can be attributed to changes in customers preferences. The customers have been opting for new and alternative products partly for price reasons but primarily for lack of dependability of timely supply of jute goods which are still to develop a mass production and supply chain. Competition from synthetics with their huge capacities worldwide and drastic changes in transport methods is also responsible for low imports. Change of strategy by synthetic products manufacturers from purely petro-based to so called bio-degradable polythenes has been able to sustain their markets and they have been able to satisfy the eco-preferences of the discerning Western customers. These alternatives of jute and natural fibre bags are no doubt more versatile than jute products but certainly less eco-friendly. Thus jute based products have lost European market because of price considerations, lack of mass production and reliable supply chain and last but not the least because of strict adherence to environment and social compliances by buyers and failure on the part of jute manufacturers to establish the social and ecological credentials of their products.

Jute Matters

World Import of Products of Jute, K enaf and Allied Fibres

700 600 500
'000 tons

400 300 200 100 0 2000 2001 2003 2004 2006 2007 2009 2002 2005 2008
Euro pe

Turk e y

Ir an

Wor ld

Unite d State s

Fig.-16: World import of products of Jute, Kenaf and Allied fibres Table-11: World Imports of Products of Jute, Kenaf and Allied Fibres (in '000 MT)
2008 596.5 44.2 5.9 12.8 12.3 12.8 5.6 60.0 16.0 1.0 33.4 148.3 5.4 13.0 5.5 2.7 1.0 2.6 2.9 40.8 37.2 2009 528.1 37.5 5.8 12.0 12.0 9.9 3.1 60.0 17.5 1.0 35.0 137.5 5.0 10.7 5.5 3.7 1.0 2.6 21.2 28.4 25.1

2001 World Africa Algeria Ghana Egypt Latin America Brazil Asia Iran Saudi Arabia Sudan Syria Turkey China Indonesia Korea Republic Malaysia Pakistan Sri Lanka Thailand North America United States 558.9 32.8 1.0 7.3 15.9 10.2 1.9 57 14.9 15.4 35.8 43.4 3.2 2.5 3.0 0.9 1.2 2.3 0.4 52.8 48.4

2002 594.2 22.6 1.0 8.4 6.5 8 1.8 67.2 13.9 11.0 65.9 64.6 3.7 3.1 3.5 1.0 0.5 2.0 0.3 61.4 56.6

2003 608.7 34.5 5.4 10.3 4.0 10.5 2 63.1 15.2 3.7 80.0 78.1 4.3 4.5 3.4 1.1 0.2 2.3 0.9 56.7 51.9

2004 587.6 44.2 8.7 14.6 3.8 9.2 2.4 68.2 16.5 3.9 30.8 108.5 3.5 6.0 3.0 1.7 0.2 2.2 1.7 60.1 55.4

2005 589.7 35.1 5.7 4.7 5.5 9.8 2.7 75.1 18.7 3.0 42.3 101.2 4.0 7.1 4.8 1.4 0.2 3.2 0.4 59.3 54.7

2006 574.2 50.7 5.1 19.8 5.4 11.9 3.9 60.02 18.9 3.2 53.7 127.9 4.5 8.8 5.0 1.8 0.4 2.5 0.6 49.9 46.5

2007 590.8 49.9 7.2 14.2 4.6 12.3 4.1 60.01 19.3 2.1 39.7 125.1 4.7 11.1 5.7 2.0 1.3 2.1 0.5 46.3 42.4

Jute Matters
Europe Belgium-Lux Germany Netherlands Spain United Kingdom Poland Australia Japan South Africa 189.1 91.8 15.6 14.7 7.8 28.4 2.4 27.6 22.9 5.5 176.4 79.4 16.6 16.8 8.1 24.0 2.7 31.0 19.9 4.7 175.6 70.8 15.9 25 6.7 26.2 2.4 28.0 19.1 4.2 155.2 67.2 14.8 15.2 6.9 23.1 2.3 25.4 17.8 4.6 149.2 62.7 14.1 16.3 8.4 18.0 3.2 28.7 17.3 3.7 137.1 60.7 13.5 12.1 7.9 14.0 3.5 23.3 14.5 3.5 132.5 56.5 14.7 14.1 5.3 12.0 3.6 23.6 13.6 3.3 126.7 50.7 11.9 15.9 4.9 10.2 2.6 23.2 14.3 2.3 79.2 35.9 9.3 9.3 2.9 6.7 0.9 23.0 14.2 1.7

Reduction in use of jute bags for Cotton and Tobacco packaging is the reason for decrease in the import of jute products by some countries like Pakistan. Negotiating with the concerned cotton, coffee, cocoa, sugar and tobacco Associations to use jute fabrics for packing may bring forth a positive result and jute may regain its market in these commodities producing countries. IJSG is in touch with these Associations but it requires Government level initiative and support from the producing countries. IJSG proposes to organize high level interactions with these Governments, the commodity Associations along with diplomatic assistance from the producing countries. However, regaining these lost markets requires competitive price and assured supply chain of food grade jute bags. 13. Sustainable Development of the Jute / Kenaf Sector A study carried out by the International Institute for Sustainable Development (IISD) on Sustainable Markets-An Opportunity for Sustainable Development has shown that Sustainable Markets are outpacing Conventional Markets in case of Cocoa and Coffee (Fig.17 & Fig.18 ). In view of the points mentioned above the concerned stakeholders may think
Sales of sustainable green coffee 2003-2009
125,000 100,000 75,000 50,000 25,000 0 2004 2005 2006 2007 2008 2009 F airtrade Organic 25,000 20,000 15,000 10,000 5,000 0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Time series of Cocoa exports by sustainability initiative, 2000-2009

Organic Fare Trade

Fig.-17. Sales of sustainable green coffee, 2003-09

Fig.-18: Cocoa export by sustainable initiative, 2000-09

Jute Matters of Sustainable Jute/Kenaf for the greater and lasting benefit of all. Sustainable development is a policy approach that has gained quite a lot of popularity in the recent years. It is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present but also for generations to come. Jute/Kenaf is a fibre that through its production and applications can bring about environmental, economic social sustainability. In view of the current global awareness for healthy and pollution free environment, it is absolutely necessary to take a sustainable commodity initiative to make the jute/kenaf sector more sustainable so that it can grow by virtue of its own characteristics and inherent potential. The initiative would include reducing GHG emissions at all levels of its life cycle which will include efficient agriculture practices like reducing use of chemicals for jute cultivation and more efficient water management, modernization of processing machinery to cut down on fossil fuel consumption and cutting on consumption of fossil fuel in transportation. By having a life cycle analysis of jute products with measurements of carbon, water and chemical footprints, jute and other natural fibres need to do vigorous marketing of its green value along with ensuring a dependable production and distribution network. This is an area where less eco-friendly bio-alternatives developed by plastic and synthetic industries have taken a lead over natural fibres. For the development of a sustainable market for jute it is absolutely necessary to harmonize with the Green Market Compliances as will be discussed in the next Para. Examples of some popular Eco-labels and Products Life Cycle are shown in Fig.-19 and Fig.-20.

Ecolabel - Examples

Fig. - 19: Some popular Eco labels (Source: Pricewaterhousecoopers Presentation toIJSG2011)

Jute Matters

Fig: 20: Products Life Cycle 14. Human Resource Development The jute industry is one of the most labour-intensive industries and it requires skilled manpower for efficient processing and management. The dearth of trained manpower in the jute industry is regarded as one of the key impediment in the growth of the jute sector as it fails to maintain the required productivity and the quality of products.

Jute Matters For the growth and efficient management of jute mills IJSG feels it necessary to improve the efficiency of the jute mill personnel like supervisors and technologists through seminar / workshops and training programmes on modern processing technology and resource management to reduce the conversion cost, improve the productivity and the quality of the jute products. In October-November 2010 IJSG, in consultation with jute industry, organised a modular based training programme for the jute mill personnel on Jute Spinning and Jute Weaving attended by a total of 63 participants from Bangladesh and Pakistan. The training was conducted by the faculty members of the Institute of Jute Technology, Kolkata, India. Seeing the enthusiasm shown by the trainees for such training IJSG intends to continue holding such demand driven short term training courses in future as well. The National Jute Board, India, under Jute Technology Mission, is implementing a scheme for training of workers and supervisors on various aspects of jute processing. The scheme is being implemented through IJT which is developing training modules for each of the various categories of personnel employed in the jute mills. The feedback has not been very encouraging because of several reasons. No similar efforts are being done in Bangladesh in a planned manner. IJSG can help in developing such training modules with expertise in India and Bangladesh and organise training courses with financial support from the concerned Governments/industries. Such training modules are also necessary for other jute manufacturing countries like Pakistan, Myanmar, and Nepal etc. In order to meet the skill development demand of JDP sector IJSG proposes to enter into an MOU with the National Centre for Design and Product Development (NCDPD), New Delhi, India to promote design interventions for producing value added JDP in Bangladesh and other countries. IJSG intends to hold training programs in future and also to develop a JDP design bank in future in association with NCDPD. 15. Jute and the Environment Jute has an intense relationship with the environment. It is bestowed with natural process to clean the air. One hectare of jute plants can consume up to 15 tons of carbon dioxide and release 11 tons of oxygen during the jute growing season (about 100 days). It improves soil fertility by providing nutrients to the soil thereby increasing the yield of other crops. Jute agricultural practices are environmentally sound. They cause minimal impact to the natural environment as it gives back to nature 60% of the nutrients it takes for its growth. Jute products are 100% biodegradable and recyclable and can be disposed of without causing

Jute Matters environmental hazards. Jute Products could be disposed of in 100 days by dumping in soil containing 22% water. Dumping requires very small amount of space and can be conveniently done at any place. After completion of dumping period, the soil could be used as natural manure. The concept of Green Market is becoming very popular rapidly and jute trade is also likely to come under the influence of Green Market very soon. The Green Markets are being driven by the factors such as Carbon Footprint, Water Footprint, Eco-label, Supply Chain Audits and Retail Chain Sustainability Policies, Fair trade, Chemicals in the value chain and Life Cycle Assessment and comparative assertions with peer review. As it has been discussed earlier, non-compliance with green market requirements by jute product manufacturers has been the prime reason in decline of import of jute products in Europe. In jute manufacturing some chemicals are used which would have to address the REACH ( Registration, Evaluation and Authorisation of Chemicals) requirements for retention of its existing market as well as for regaining lost markets in Europe. It may be mentioned that REACH is the European Community Regulation on chemicals and their safe use (EC 1907/2006) and it is important that all manufacturers, importers and downstream users of chemicals are prepared and fully aware of the impact this legislation has on their business. Thus jute products in spite of the fact of being eco-friendly by origin need to compete with the existing and future compliances to achieve its rightful market. The superiority of natural fibres as an environmentally friendly product over synthetics could be understood from the facts that as per a rough estimate plastic bags cause over 100,000 sea turtle and other marine animals deaths every year when animal mistake them for food. The manufactures of plastic bags add tons of carbon emission into the air annually. In UK the banning of plastic bags would be the equivalent of taking 18,000 cars off the roads every year. Approximately 60100 million barrels of oil are required to make 500 billion to 1 trillion plastic bags used each year. Most plastic bags take over 400 years to biodegrade while some figures indicate that some plastic bags could take over 1000 years to break down. In 2002 Ireland imposed a 15 euro cent tax on plastic bags and as a result its use dropped over 90% within 5 months. In the same year Bangladesh banned polyethylene bags in Dhaka as the bags were choking the drainage system and causing floods in the capital. China has banned plastic bags in 2008 and, a year later, it was reported that the country saved the equivalent of 1.6 million tons of oil and 40 billion bags. United Arab Emirates has recently

Jute Matters announced that there will not be any plastic bag in UAE after 2014. India also has banned plastic bags in several cities. Other countries that have introduced additional charges or tax on plastic bags include Rwanda, Eritrea and Swaziland. Bangkok is holding a No Bag, No Baht campaign to reduce the 600,000 plastic bags which offers consumers one Baht (3 US cents) discount for every 100 Baht (3 US$) purchase if they use their own cloth bags when shopping. This means each plastic bag will cost them one Baht. Bangkok Metropolitan Administration figures show that about 600,000 plastic bags are used every day in this city of 9 million people and the disposal cost is around US$ 18.4 million The National Jute Board (NJB) of Kolkata, India commissioned a study on Life Cycle Assessment for developing Eco-labeling and Disposal Protocol for Jute Products. The study (2006) has shown that Eutrophication and air acidification by jute product is much lower as compared to the competing product such as paper bags, disposable PE bags, biodegradable PE bags and reusable PE bags. Greenhouse Gas Emissions from jute are negative on account of the large sequestration that occurs during the jute growing stage (Fig.-21). The IJSG Secretariat has taken initiative in this regard and has already organised two seminars, one in Kolkata and one in Dhaka which were attended by stakeholders from India and Bangladesh. The IJSG Secretariat is working in developing a project report for Eco-labeling and Disposal Protocol for overall promotion of jute products as per discussion and recommendations of the seminars. It will be taken to donor agencies for funding. Jute life cycle impact on the environment is lesser than Polypropylene (PP) life cycle stage impacts. 1 MT of PP releases 7 MT of carbon dioxide (CO 2) in the nature whereas 1 MT of Jute fibre removes 2 MT of CO2 from nature. Jute and jute products are also photodegradable, thermal degradable, non-toxic, and have UV absorbing capacity.

Jute Matters

Fig.-21: Benchmarking of Green House Gas emissions of different products

Being environment friendly is the biggest unique selling point of jute but the sector is still short of catching the imaginations of eco-friendly consumers because of non-availability of desired quantities complying with green compliances and other parameters. As per a study on A Road Map for Sustainable Consumption (World Economic Forum, January 2010) it was observed that 95% of the consumers surveyed remarked that they would buy Green, 75% know what a Green product is, 63% are looking for Green, 47% saw Green products and only 22% bought Green products (Fig.-22). This figure suggests an unfulfilled, latent demand for green products that could be realized through the development of right products and ensuring product availability.

Jute Matters

Fig.-22: A Road Map for Sustainable Consumption 16. Jute & Carbon Credits Carbon trading is a market mechanism intended to tackle global warming around the world. It took off as a marketable product after the Kyoto Protocol was signed in 1997. The protocol calls for 39 industrialized countries to reduce their green house gas emissions (GHG) between 2008 and 2012 to levels that are 5.25 tons lower than those of 1990. Developed countries including USA are now promoting carbon trading because they are the biggest emitters of GHG and can purchase unused tradable permits from other less polluting industrialized countries or earn Certified Emission Reductions (CER) through implementing projects in developing countries under Clean Development Mechanism (CDM). It allows developed countries to achieve part of their reduction obligations through investment in projects in developing countries that fix or sequester carbon dioxide from the atmosphere. Such projects can earn CER credits which can be counted towards meeting Kyoto Protocol targets of the investing countries. Bangladesh and India are comparatively low carbon dioxide emitting countries as evident from the Green House Gas Emission (GHG) by different countries given in Table-12. Forestry is one of the three major sectors in which the GHG can be reduced through CDM mechanism. The United Nations General Assembly has declared 2011 as the International Year of Forest to focus on raising awareness at all levels to strengthen the sustainable management, conservation and sustainable development of all types of forests for the benefit of current and future generations. Jute cultivation could be regarded as aforestation and

Jute Matters reforestation. Total area of jute, kenaf and allied fibres cultivation is around 1,312,000 hectare per year. Since one hectare of jute plantation consumes about 15 tons of CO2 the total amount of CO2 consumed per year is about 20 million tons which is equivalent to 20 million Carbon Credits. Organized jute farming may have the potential to claim Carbon Credits. Possibility may be explored whether a project could be initiated to group the jute farmers together to form a jute growing farm through which they can lay claim to carbon credits after meeting the necessary requirements and enter into an agreement with industries, power plants of foreign countries that emit GHG beyond permissible limit. If this could be achieved, the farmers as well as the producing countries would be immensely benefited. IJSG is working on the feasibility of such proposition.

Table-12: Greenhouse Gas Emissions by Countries SL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 CO2e SL 21 22 23 24 25 26 27 28 29 30 31 32 33 34 CO2e t/person/year 10.13 9.68 10.09 25.09 7.01 22.35 11.13 23.57 8.48 13.79 0.85 7.99 58.01 11.21

Country

t/person/year Argentina 4.12 Australia 18.75 Bahrain 28.23 Bangladesh 0.25 Belgium 9.97 Brunei Darussalam 14.97 Canada 17.37 China Cyprus Czech Republic Estonia Finland France Germany 4.57 9.34 11.83 13.45 12.19 5.81 9.71

Country Ireland Japan Korea, Republic Kuwait Libya Luxembourg Netherlands Netherlands Antilles New Zealand Oman Pakistan Poland Qatar Russian

Jute Matters Federation Saudi Arabia 14.79 Switzerland 5.62 Trinidad And 21.85 Tobago United Arab 29.91 Emirates United Kingdom 8.6 United States 19.1

15 16 17 18

Gibraltar Greece Hungary Iceland

16.79 8.74 5.36 7.53

35 36 37 38 39 40

19 India 1.18 20 Iran 6.56 Source: International Energy Agency

17. Food Security (Inclusive growth of green fuel) The global concern for food security is becoming one of the biggest challenges to further expansion of natural fibres in getting more acreage under cultivation and even saving the existing area under fibre cultivation. The total population of the jute producing countries is about 1.6 billion and about 400 million experience the hardship that hunger imposes as they have income below the poverty level. With population growth, food security has become an urgent challenge for national and global governance. It is well established that the food availability in the domestic market does not necessarily ensure food security for the masses if they do not have the required purchasing capacity. The role of food production and bringing more land under food crop cultivation for food security cannot be overemphasized given the low income of the producing countries, where a large section of population is deprived of required minimum calories because of low purchasing power. The strategy adopted by developing countries needs to be for inclusive and rapid growth of economy including agricultural productivity. There is limited rationale in switching over to food crops from jute production in order to increase food production and ensure food security. It would be pertinent to mention here that while many people in the Least Developed Countries suffer from shortage of food grains some countries are converting food items like cassava, corn, sugar, palm oil to biofuel to meet green energy requirements. The trend to use food crops for biofuel started in 2004 and by 2010, 6% of all the food crops went into making biofuel. Some developed countries have set targets to produce higher quantity of biofuel.

Jute Matters Encouraged by national biofuel subsidies, nearly 40% of the corn grown in the United Stares now goes to make fuel resulting in a rise of price of corn. This diversion of food to fuel is a major contributing factor in rising food prices and can pose a threat to future food security. Food and Agriculture Organisation (FAO) has reported record inflation of 15% in food prices from October 2010 to January 2011 alone pushing an additional 44 million people in low and middle-income countries below poverty. It also reported that during the second half of 2010 the price of corn rose steeply-73 % in the United States-a rise that the World Food Program of the United Nations attributed in part to the increasing use of U.S. corn for bio-ethanol. In the United States, Congress has mandated that biofuel use must reach 36 billion gallons annually by 2022, four times the level in 2008. The European Union stipulates that 10% of transportation fuel must come from renewable sources like biofuel or wind power by 2020. Countries like China, India, Indonesia and Thailand have adopted biofuel targets as well. Jute is grown as a rotation of crops and the duration of jute plants in the field is, on an average, 120 days and after harvesting of jute the field is ready for plantation of rice which is a usual practice in the jute producing countries. Jute, unlike some other natural fiber crops, is an intermediary crop of short duration and does not hinder plantation of rice in any substantial manner. Jute cultivation provides employment to millions of farmers including women at a time when they hardly find any job / work to do. It is harvested, extracted, washed and dried in the rainy season when most of the land is inundated resulting in reduced scope for work. Jute cultivation provides a good source of income generation for the labourers leading to poverty alleviation and providing them necessary purchasing power. Jute fibres are processed in the mills and factories to produce jute products where thousands of workers find employment that provides food security for them and their families. Thus growth of jute and other natural fibres is not a hindrance towards ensuring global food security to any significant extent. The bigger threat is from diversion of food crops for fuel. IJSG is trying to appeal to world community to appreciate the significance of jute and promote it as a precious commodity. 18. Jute and the International Organizations A. UNCTAD:

Jute Matters The United Nations Conference on Trade and Development (UNCTAD), established in 1964 as a permanent intergovernmental body, is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues. Currently, UNCTAD has 193 member states and is headquartered in Geneva, Switzerland. The goals of UNCTAD are to maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis. The primary objective of the UNCTAD is to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology. . UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development. To fulfill the mandate UNCTAD 1) functions as a forum for intergovernmental deliberations, supported by discussions with experts and exchange of experiences aimed at consensus building; 2) undertakes research, policy analysis and data collection for the debates of government representatives and experts and 3) provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. One of the principal achievements of UNCTAD has been to conceive and implement the Generalized System of Preferences (GSP). Recently UNCTAD had organised two international conferences-Global Commodities Forum 2011 (January-February 2011) and Multi-year Expert Meeting on Commodities and Development during 23-25 March 2011in Geneva where various commodity related issues like Developments and Challenges in Commodity Markets were discussed. IJSG always maintain a close relationship with UNCTAD, attends its meetings and put forward the views of IJSG for the development of the global natural fibres sectors, particularly jute, kenaf and other allied fibres. B. Food and Agriculture Organization (FAO) The Food and Agriculture Organization of the United Nations leads international efforts to fight global hunger. Serving both developed and developing countries, FAO acts as a neutral forum where all nations meet as equals to negotiate agreements and debate policies. FAO is also a source of knowledge and information. FAO helps developing countries and countries in transition, modernize and improve agriculture, forestry and fisheries practices and ensure

Jute Matters good nutrition for all. Since its founding in 1945, FAO has focused special attention on developing rural areas, home to 70 percent of the world's poor and hungry people. IJSG and FAO maintain a relationship of mutual cooperation. FAO enjoys the status of an Observer in IJSG Council meetings and its representatives attend IJSG Council Session. IJSG was a member of the Steering Committee for observance of the International Year of Natural Finres (IYNF) 2009 initiated by FAO. Under the umbrella of FAO there are Inter Governmental Group of Hard Fibres (IGGHF) and IGG for Jute, Kenaf and Allied Fibres (IGGJKAF). For better coopperation among the IGGHF and IGG on jute/kenaf a common programme may be helpful for development and growth of all these fibres. IJSG being the ICB for jute and kenaf plays a crucial role at FAO during the joint meetings between above IGGs and IJSG. C. The Common Fund for Commodities (CFC) The Common Fund for Commodities is an intergovernmental financial institution established within the framework of the United Nations. The Fund operates under the novel approach of commodity focus instead of the traditional country focus. Member countries benefit from projects financed by the Fund, whose basic rationale is to enhance socio-economic development of commodity producers; and to contribute to the development of the society as a whole. The Fund finances projects for smallholder farmers, as well as small and medium size enterprises involved in commodity production, processing and trade in developing and least developed countries. IJSG sponsors and implements projects on various jute related aspects to develop technologies, products and to set standards and specifications of jute products to suit the consumer needs. CFC has provided a total of US$ 2,863,358 since 2001 for the implimentation of 8 important IJSG projects in areas like Bio-pulping to make paper pulp with jute/kenaf plants, Jute based composites, Road Map for Jute, Small-scale Entrepreneurship Development, etc.and is currently funding two important projects, one on jute geo-textiles involving Bangladesh and India and the other on selection of Kenaf germplasm for specific industrial applications involving Bangladesh, Malaysia and China. Both CFC and ICBs are passing through a crucial phase and facing resource crunch in the light of fast depleating financial commitment from the donor countries. IJSG feels that for the

Jute Matters overall development and greater interest of the commodity driven economy, the CFC needs to be strengthened with more financial support and wider mandate so as to enable it to provide more funds to the ICBs for implimentation of projects of diverse nature and of immediate priority needs endorsed by the stakeholders. CFC in turrn requires to strengthen the institution of ICBs for the growth of commodity sector. It may be pointed out here that objectives of CFC and those of ICBs sometimes do not match. ICBs do not get funds for implimentation of some projects like for Human Resource Development/Training etc. which is very essential for the substantive development of the relevant commodity. ICBs have been formed with a mandate and specified objectives to work for the respective commodities. CFC should take this into consideration and try to support the projects sponsored by the ICBs. In some instances, CFC has funded projects initiated by private sources with a justification that independent initiatives need to be tapped. This perception negates the fact that the ICBs are represented not only by Governments but have a strong representation from all other stakeholders of the sector including private sector.Thus there is no dearth of good projects or innovative ideas emanating from ICBs. In order to strengthen the existing institutional framework and also to ensure transparency and accountability in allocation of limited resources, it will be nice on the part of CFC to fund only the projects sponsored by the ICBs. D. The South Asian Association for Regional Cooperation (SAARC) is an organization of South Asian nations, founded in December 1985 and dedicated to economic, technological, social, and cultural development emphasizing collective self-reliance with its headquarters in Kathmandu, Nepal. The 11 stated areas of cooperation are agriculture, education, culture, sports, health, population, child welfare, the environment and meteorology, rural development (including the SAARC Youth Volunteers Program), tourism, transport, science and technology and communications. At present there is almost no cooperation between the member countries in jute sector though it is a major commodity in several countries. IJSG is holding discussion meetings with the SAARC Information Centre (SAIC) at Dhaka and is proposing to sign an Memorandum of Understanding (MOU) soon for the promotion of jute and jute products among the SAARC countries with a regional approach. This is likely to strengthen the efforts of IJSG in addressing the various jute related issues for the overall development and generic promotion of jute and jute products. E. Economic and Social Commission for Asia and the Pacific (ESCAP)

Jute Matters ESCAP is the regional development arm of the United Nations (UN) for the Asia Pacific region. ESCAP is working for a number of issues including environment and sustainable development. Jute and Kenaf are important crops in several countries in the region. IJSG is trying to revive its IJO days association with ESCAP and work with it to bring in more cooperation on jute and kenaf issues within the regional countries. F. Discover Natural Fibres Initiative (DNFI) Discover Natural Fibres Initiative (DNFI has been established as an international Forum of natural fiber organizations in continuation of the International Year of Natural Fibres 2009 (IYNF 2009) declared by the United Nations General Assembly. The year was celebrated with the objective to raise the awareness, stimulate demand and enhance the profile of natural fibers. It was unanimously agreed by the members of the IYNF Steering Committee to continue the co-operation between all relevant natural fibers in the future as a permanent ongoing project with the name of Discover Natural Fibres Initiative (DNFI). It is an alliance of key international natural fibre associations/organizations including IJSG, CCI, ICAC, Bremen Cotton Exchange, International Textile Manufacturers Federation (ITMF); and the International Wool Textile Organisation (IWTO), and many others. The DNFI intends to build on the achievements of the IYNF 2009 and maintain future cooperation between different natural fibre organizations. IJSG continues to be an enthusiastic member and supporter of DNFI. IJSG is actively pursuing the common cause with other natural fibres as a key partner in DNFI.

Conclusion: Importance of natural fibres like jute/kenaf in the lives of the people of the producing countries as well as in the context of the global urge for a pollution free environment is a well established reality now. The road ahead is full of challenges and requires some out of box thinking and innovative approaches for the development of the sector in a sustainable manner. For the growth of global jute economy growers and entrepreneurs face a number of challenges which need to be addressed appropriately. Jute still matters a lot and it is

Jute Matters worthwhile to recapitulate and summarise the most important issues discussed in the previous chapters as follows. a) Challenges for jute cultivation: Farmers face a number of challenges like availability of good quality HYV seed as well as the problem of retting for scarcity of sufficient water. R&D institutes have developed some retting technologies but the farmers still prefer conventional retting technique. There is need for proper demonstration and extension of these technologies and also explore the possibilities of community retting facilities to solve this problem. b) Raw Jute: Raw jute production needs to be increased to meet the enhanced present and future demand in the domestic as well as the export market. The need for large scale production of jute shopping bags to meet even a small fraction of potential global demand, the increasing use of jute geo-textiles, the fast growing application of jute-composites in automobile, household and construction sector would further enhance the demand. Thus there is a strong opportunity for revival and expansion of jute cultivation in producing countries. c) Productivity Issue: In the light of increasing pressure on cultivable land from food crops and construction sectors, the present productivity of jute is to be increased to boost up fibre production to meet the projected demand. R&D investment in seed sector needs to be strengthened to develop still higher yielding races and also to minimise the existing productivity gap between the lab and the land by concerted extension efforts for adoption of existing HYV races after diligent soil testing and mapping. d) Seed scenario: The present overall short supply of HYV jute seeds can be addressed in a better way by having a regional approach to the issue in producing countries specially Bangladesh and India. Private entrepreneurs of both Bangladesh and India may be encouraged to commercially produce HYV seeds under strict quality control in Bangladesh, and other jute producing countries facing shortage of certified seeds. The shortage of HYV seeds can be met only by large scale private investment in the sector till BT jute on the patterns of BT cotton is developed with the recent breakthrough in the jute genome sequence decoding. Private sector investment,

Jute Matters however, will be required even for the multiplication of any future BT jute races hence a regional approach is to be taken as a long term serious proposition. e) Raw jute prices: In order to rationalize the current volatility in the raw jute prices the Governments do need to play a role of limited positive intervention in the producing countries. Both BJMC in Bangladesh and JCI in India can act as national agencies to do limited commercial trading of raw jute not for profit making but primarily for stabilising the prices of raw jute in such a way that it helps both the farmers and the industry. Prices of both raw jute and jute products need to be rationalized for retention of the existing export market and overall global consumption level of jute. f) Commodity Exchange: In the long run the jute sector does need a well developed commodity exchange on the pattern of other commodities to let the market forces function independently with the provision of limited Government intervention only crisis situations. g) Contract system of jute cultivation: To avoid volatility of high market price of raw jute the mills must consider a policy of contract growing of jute in their catchments area on the patterns of sugar sector in sugar producing countries where the system is well regulated by legislative measure and very well functioning to the benefit of both the sugarcane farmers and the sugar industry. In Bangladesh the big tobacco mills are having such kind of arrangement in an informal but very effective manner resulting into exceptional growth in tobacco production in past few years. With such kind of contractual arrangement the jute mills can remain assured of raw jute supply and the farmers of assured market. The arrangement, however, involves some assistance from mills to the farmers in the form of supply of HYV seeds, proper retting facility, soft loan or any other assistance subject to formal or informal agreement between the two parties. The arrangement will also lead to higher productivity since the mills will like to help the farmer in procuring good quality HYV seeds in return for assured good quality raw materials. h) Modernisation of Jute Mills: Jute mills in Bangladesh and India need to be modernised to reduce the conversion cost, maintain product quality, make jute products price competitive and for ensuring compliances with environmental protocols. It is a long term investment and there is no shortcut to future growth.

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i) Diversification of jute: A host of diversified jute products have been developed which need to be produced in large scale and marketed in domestic as well as foreign market. Thus while the jute spinning sector in Bangladesh can look towards transforming into composite mills, the composite mills in India need to diversify from traditional to new sectors. These are logical steps to greater value addition beneficial to both the industry and the country as a whole. j) Jute Bags: Successful replacement of polythene bags can be ensured only if we make the alternative jute bags readily available in required numbers and at reasonable price. Jute mills should take initiative in such efforts and also encourage small entrepreneurs by supplying required raw materials to them through warehouses and raw material banks established by them. k) Food grade jute bags: Possibility of expansion of the market for food grade jute bags need to be explored and promotional activity in this regard is to be carried out as this market segment holds bright prospects. Concerted negotiation both at Government and private level are required to regain the lost sacking market of jute for packaging and transport of cocoa, coffee, tobacco, etc. l) Jute based composites: Technologies have been developed to produce a number of jute based composite products which require focussed attention from jute industry. It opens up a new area of investment for both jute and plastic industries. The Governments in producing countries need to aggressively promote this area since the increasing trend of application of jute based composites in the automobiles, construction and home furniture segment signals a double digit growth in eco-friendly direction. In fact the entire plastic sector can theoretically take the bio-composites route to become more eco-friendly. The sector has unending untapped potential. m) Paper Pulp: Bio-technologies have been developed under a project implemented by the IJSG to make paper pulp using green jute/kenaf plants where energy requirement will be 30% less. In the backdrop of dwindling forest resources and to use renewable raw materials, entrepreneurs may take a leap forward in taking up these technologies for commercialization. In this International Year of Forests, jute producing countries can subside entrepreneurs in some form to go for adoption of this technology.

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n) Eco-labelling and Disposal Protocol: Compliances with various socio-ecological standards is going to be a major factor in the jute export market in the near future. The industry should take a pragmatic approach in this regard and take appropriate steps with an eye for future expansion. These compliances now need to be taken as green drivers for growth and gradually adopted in the sector. o) Human Resource Development: In view of dearth of trained man power in the Jute mills of Bangladesh, India, Pakistan and Nepal there is need for organising training programmes for the jute mill personnel working in different categories.

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