Jute Industry

Jute Industry

Jute Industry

Bangladesh holds the second position as jute producer in the world with the average production of Jute 1.08 m ton/Year. More than 85% of world production of jute is cultivated in the Ganges Delta. having the major portion of Ganges Delta within it, Bangladesh has become the largest producer of raw jute or jute fiber in the world. Bangladeshi jute has considerable demand in the international market for high quality fibers. Fabrics made of jute fibres are carbon-dioxide neutral and naturally decomposable and hence,  the same can be used in high performance technical textiles. A unique combination of long bast and short core fibres along with lower lignin content than some other feedstock of pulp/paper makes jute suitable for a range of paper and cardboard products.  The average export earnings from jute & jute goods is US$ 611 million (60 lakh bales) per annum. The size of the global jute yarn import market is estimated at 4,50,000 tonnes, with Bangladeshi spinners accounting for around 80 per cent of the supply. The Government of Bangladesh has declared jute goods processing as an agro-based industry. Presently, all jute goods and goods made of jute yarn enjoy 10 per cent and 7.5 per cent cash subsidy respectively. Besides, Bangladesh Bank has created a refinance fund worth Tk 2.0 billion for the jute sector. The fund is open for the exporters and traders of the concerned sector. The Government has made jute packaging compulsory for 90 per cent food grains and 20 per cent sugar produced during the current jute year (1st July 2015 to 30th June, 2016) subject to availability of the packaging material.