Jute joy amid coronavirus cloud over Bangladesh exports

In the dark and unforgiving cloud that is the coronavirus hanging over Bangladesh's foreign income, jute exports have grown 14 percent year-on-year to $791.3 million in the July-April period of the current fiscal year.

It has beaten the target by 17 percent when export earnings from every other major sector have slumped due to the coronavirus crisis.

This is the first time jute, once called the golden fibre for both its shiny golden colour and economic benefits, has toppled leather as the second best exporting sector behind readymade garments.

The country’s total export earnings in the 10 months were worth nearly $29.5 billion, more than 21 percent shy of the target and 13 percent less than the amount earned in the same period last fiscal year.

Apparel exports dropped by 14 percent year-on-year to $24.48 billion while leather exports fell by 16.26 percent to $700 million.

M Saajjad Hussain Sohel, the chairman of Bangladesh Jute Goods Exporters' Association or BJGEA, however, says that the money from jute export increased due to rise in prices in the global market, but the volume has not increased much.

Visitors looking at different jute products on display at a stall at the Jute Exhibition at the Bangabandhu International Conference Centre on Tuesday. Photo: mostafigur rahman

“But we are hopeful that jute will finally bring us good news,” he added.

He noted that the coronavirus pandemic has also hit the sector hard. Export growth dropped to 17 percent in April from 23 percent in March due to the lockdown.

The BJGEA chief believes the more people concern themselves with the environment, the better it is for the jute sector. Countries around the world are scrapping polythene bags and the demand for jute sacks is high to pack food grains.

“The demand will rise further. We will be able to bring back the glory of the golden fibre if we take care of the sector,” he said.

The exporters are even selling raw jute to India rather than to the local mills as the price has increased in the international market, he said. “But it’s bad for our farmers because they are not getting the share of the profit,” Sohel said.

Workers taking newly harvested jute down from a boat at 'Ghior Haat' in Manikganj. Photo: Mostafigur Rahman

He also alleged traders were not following the law that makes it mandatory to use jute sacks to pack paddy, rice, wheat, corn, fertiliser, sugar, onion, ginger, garlic, pulses, potato, flour, chili, turmeric, coriander seeds and husks of rice and wheat.

The government has 22 jute mills while around 200 others are run privately.