Bangladesh government to boost exports of diversified jute products
Bangladesh textile and jute ministry to boost exports of goods made from the natural fibre jute has listed 232 diversified jute products. The move comes as many jute goods producers are facing problems in receiving cash incentive in the absence of any list of diversified jute products and any definition of diversified jute goods
The list has already been sent to the finance ministry for circulation, said Nasima Begum, joint secretary of the ministry and also the executive director of Jute Diversification Promotion Centre (JDPC). They hope these products will get the incentive
The panel finalised the list that includes shopping bags, curtains, cushion cover, pillow cover, sofa cover, table mats, flower vases, storage items, indoor and outdoor gardening materials, and lifestyle products like shoes.
To enjoy the benefit, exporters will have to get certification from JDPC that their products are diversified jute goods, Nasima said.
Md Rashedul Karim, convener of Bangladesh Jute Diversified Product Manufacturers and Exporters Association said that they expect the listing of products will facilitate the growth of export. They urge the government to issue notification so that exporters reap benefits. The incentive will boost the competitive edge of Bangladesh’s exporters in the global market.
Due to higher production costs, Bangladesh’s diversified jute goods producers have to face tough competition, mainly from their Indian counterparts, in the global market.
This deters local producers from getting a bigger slice of the global market. The annual demand for shopping bags stands at around 500 billion pieces globally.
The market for natural fibre-based products is rising 5-7 % every year. Despite the bright prospects, diversified jute goods got little attention from policymakers earlier.
The recent move by the government will go some way towards changing that situation. Now, they have to give importance to research and development.
The export of diversified jute goods has edged up in recent years because of increased demand, he said. The amount soared to Tk 700 crore in fiscal 2015-16 to export of diversified jute goods for Tk300 crore in fiscal 2010-11.