Introduction:

Jute is a natural fibre with golden and silky shine and hence called “The Golden Fibre”. It is the
cheapest vegetable fibre procured from the bast or skin of the plant's stem and the second most
important vegetable fibre after cotton, in terms of usage, global consumption, production, and
availability.

It has high tensile strength, low extensibility, and ensures better breath ability of fabrics. Jute fibre is
100% bio-degradable and recyclable and thus environmentally friendly.  It is one of the most versatile
natural fibres that have been used in raw materials for packaging, textiles, non-textile, construction, and
agricultural sectors. It helps to make best quality industrial yarn, fabric, net, and sacks. It is one of the
cheapest and the strongest of all natural fibers and considered as “fiber of the future”. Jute is second
only to cotton in world's production of textile fibers.

The first jute mill started production in Bengal in 1856. After more than 150 years, the jute industry is
now challenged by competition from alternative materials, by the recession in the international markets
and by low awareness among consumers of the versatile, eco-friendly nature of jute fabric itself. It is a
golden bond with the Earth; its use is a statement about ecological awareness as it is a fully bio-
degradable and eco-friendly fibre. It comes from the earth, it helps the earth and once its life is done it
merges back into the earth. 

Physical Properties:

Jute, as a natural fibre, has many inherent advantages like lusture, high tensile strength, low
extensibility, moderate heat and fire resistance and long staple lengths. It is a biodegradable and eco-
friendly. It has much advantage over synthetics and protects the environment and maintains the
ecological balance. The best quality fibres are pale white or silvery grey, common qualities are brownish
and greenish are inferior, roots are usually darker without any luster. Better quality fibres shows matt
and pitted surface with very poor strength. Better quality fibres have fairly high luster but inferior
quality fibres shows matt and pitted surface with very poor strength. It is attacked and damaged by the
action of micro-biological agents like bacteria, fungus, moths, insects etc. in worm damp condition.
Yellowing of the fibre is observed due to the effect of sunlight.

Advantages of Jute:

Advantages of jute include good insulating and antistatic properties, as well as having low thermal
conductivity and moderate moisture regain. It includes acoustic insulating properties and manufacture
with no skin irritations. Jute has the ability to be blended with other fibres, both synthetic and natural,
and accepts cellulosic dye classes such as natural, basic, vat, sulfur, reactive, and pigment dyes. While
jute is being replaced by relatively cheap synthetic materials in many uses, but jute’s biodegradable
nature is suitable for the storage of food materials, where synthetics would be unsuitable.

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Cultivating Area and Producing Countries:

Jute is a rain-fed crop. Almost 85% of the world's jute cultivation is concentrated in the Ganges Delta.
India is one of the largest importers of Jute in South Asia and also produces processed jute products in
the world, while Bangladesh is the largest producer and exporter of raw jute. India, Bangladesh, China
and Thailand are the leading producers of Jute.  It is also produced in southwest Asia and Brazil.  The
jute fiber is also known as Pat, kosta, Nalita, Bimli or Mesta (kenaf). Kenaf known as Mesta or Ambari
(species Hibiscus Cannabinus) is also considered as a variety of Jute.  It is cultivated in Indian
subcontinent, Thailand, China and Africa.  The two main types of jute, white jute (Corchorus
Capsularies)and dark jute or tossa (Corchorus Olitorius) are  grown in India, Bangladesh, Thailand,
China, south Asian countries and Brazil. 

India is the largest producer of jute goods in the world, while Bangladesh is the largest cultivator of raw
jute.  The cultivation of Jute in India is mainly confined to the eastern region states - West Bengal,
Bihar, Assam, Tripura, Meghalaya, Orrissa and Uttar Pradesh.  Nearly 50 percent of total raw jute
production in India alone figures in West Bengal. 

The following districts are the main jute producing districts of Bangladesh; Comilla, Chandpur,
Brahmanbaria, Dhaka, Gazipur, Manikgonj, Munsigonj, Narayngonj, Narsingdi, Faridpur, Rajbari,
Madaripur, Gopalgonj, Shariatpur, Jamalpur, Sherpur, Kishorgonj, Netrokona, Mymensingh, Tangail,
Barishal, Pirojpur, Jessor, Jenidah, Magura, Narail, Khulna, Bagerhat, Shatkhira, kustia, Meherpur,
Chuadanga, Bogra, Pabna, Sirajgonj, Rajshahi, Joypurhat, Naogaon, Natore, Nawabgonj, Dinajpur,
Thakurgaon, Panchagar, Rangpur, Gaibandha, Kurigram, Lalmonirhat, Nilphamari.

End Uses of Jute and Jute Products:

During the era of the great Mughal Emperor Akbar (1542 –1605) states that the poor villagers of India
used to wear clothes made of jute. Simple handlooms and hand spinning wheels were used by the
weavers, who used to spin cotton yarns as well. History also states that Indians, especially Bengalis,
used ropes and twines made of white jute from ancient times for household and other uses. Chinese
papermakers from very ancient times had selected almost all the kinds of plants as hemp, silk, jute,
cotton etc. for 
papermaking. Jute is not only a major textile fibre but also a raw material for nontraditional and value
added non-textile products. Jute is used extensively in the manufacture of different types of traditional
packaging fabrics, manufacturing Hessian, saking, carpet backing, mats, bags, tarpaulins, ropes and
twines. The fibres are also woven into curtains, chair coverings, carpets, area rugs, hessian cloth, and
backing for linoleum.

Jute Diversification:

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Recently jute fibres are used in a wide range of diversified products: decorative fabrics, chic-saris,
salwar kamizes, soft luggage's, footwear, greeting cards, molded door panels and other innumerable
useful consumer products.  Supported by several technological developments today jute can be used to
replace expensive fibres and scare forest materials. Very fine threads of jute can be separated out and
made into imitation silk. As jute fibres are also being used to make pulp and paper, and with increasing
concern over forest destruction for the wood pulp used to make most paper, the importance of jute for
this purpose may increase.

Jute has entered various diversified sectors, where natural fibres are gradually becoming better
substitution. Among these industries are paper, celluloid products (films), non-woven textiles,
composites (pseudo-wood), and geotextiles. Diversified jute products are becoming more and more
valuable to the consumer today. Among these are espadrilles, floor coverings, home textiles,
high performance technical textiles, Geotextiles, composites, and more. Diversified byproducts which can
be cultivated from jute include uses in cosmetics, medicine, paints, and other products.

Geotextiles:

Geotextiles is more popular in the agricultural sector. It is a lightly woven fabric made from natural fibres that is
used for soil erosion control, seed protection, weed control, and many other agricultural and landscaping uses.
The Geotextiles can be used more than a year and the bio-degradable jute Geotextiles left to rot on the ground
keeps the ground cool and is able to make the land more fertile.

Fig-01: Traditional Products of Jute

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 Fig-02: Various Jute diversified products

Past and Present of Jute in Bangladesh:

Jute manufacturing sector has emerged in East Pakistan (current Bangladesh) in the early 1950s. In
1960s and 1970s, major share of national income and manufacturing employment was largely
contributed by Jute sector. After 1960, demand for raw jute and jute products reached its tip that
suppliers of Bengal (mainly Bangladesh) couldn’t meet. But the demand had to be filled. So, there came
the synthetic alternatives – Nylon & Polythene. As the use of polythene and other synthetic materials as
a substitute for jute increasingly captured the market, the jute industry in general experienced a decline.
During some years in the 1980s, farmers in Bangladesh burnt their jute crops when an adequate price
could not be obtained. Many jute exporters diversified away from jute to other commodities. Jute-related
organizations and government bodies were also forced to close, change or downsize. The long decline in
demand forced the largest jute mill in the world (Adamjee Jute Mills) to close in Bangladesh. In the year
2009, this sector accounted for a more 3.9 per cent of the country's total export, which is of extremely
low compared to its contribution in the overall export observed during the1970s (89.9 per cent in 1973).

Farmers in Bangladesh have not completely ceased growing jute, however, mainly due to demand in the
internal market. Between 2004–2010, the jute market recovered and the price of raw jute increased more
than 500%. Jute has entered many diverse sectors of industry, where natural fibres are gradually
becoming better substitutes. Among these industries are paper, celluloid products (films), non-woven
textiles, composites (pseudo-wood), and geotextiles.

Many small entrepreneurs are now getting interest in jute and jute products. They are engaging
themselves in the production of many diversified products. Growing international interest for diversified
and lifestyle jute products have prompted Bangladeshi jute manufacturers and exporters to develop
value-added jute products like jute gunny bag or sack bags, jute yarn and twine, handicrafts, shopping
bags, beach bags, sports and travel bags, wine bags and other jute textiles. Jute is one of the most
valuable natural resources of Bangladesh and is truly ruled the world market. Bangladeshi Jute bags are

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available in neutral and earthy colors like olive green and different shades of white. These quality jute
bags made their way into almost every nature lovers home.

Export Performance of Jute:

Please see the below figures, here are data of jute and jute products export share percentage for last four
decades of Bangladesh.

800 100
700 90
Value (Million USD) Share (%) of total export 80
600
70
500 60
400 50
300 40
30
200
20
100 10
0 0
1972-73 1980-81 1990-91 2000-01 2004-05 2007-08 2008-09 2009-10

Fig-03: Jute export in Million USD and share % in total export

As the data indicate, export-oriented jute sector of Bangladesh used to contribute USD 313.1 million of
export revenue in FY1972-73, which was about 90 per cent of the total export from Bangladesh at that
time. This had come down to 23 per cent by FY1990-91, whilst in FY2000-01 the share came down to
4.6 per cent, which declined further to 2.7 per cent in FY2008-09 (Table 1). It is notable; however, that
share began to rise over the next year to reach 4.5 per cent in FY2009-10. Phenomenal growth of
Bangladesh’s export oriented garments sector in the 1990s was the major reason for the decline in the
share of jute; however, fact remains that the picture also did not improve much in terms of absolute
value. It is interesting to note that, in FY2009-10 total export of Bangladesh was USD 16.2 billion,
which was higher than the total amount (USD 15.3 billion) earned from raw jute and jute goods export
between FY1972-73 to FY2009-10. Total export of raw jute and jute goods did not increase
significantly; it rose from USD 313.1 million in FY1972-73 to USD 736.4 million in FY2009-10 (Table
1), whilst total export of Bangladesh rose from USD 348.4 million to USD 16.2 billion in FY2009-10.
However, Bangladesh continued to remain the leading exporter globally with the country accounting for
over 90 per cent of the world’s raw jute and allied fibre export. It is important to mention here that, raw
jute and jute goods export increased significantly and almost doubled in FY2009-10 compared to
FY2008-09 (by about 98.5 per cent), to reach USD 736.4 million. In FY2009-10, Bangladesh exported
4,471 thousand bells of raw jute and 906 thousand tonnes of jute goods. Major jute items that were
exported included – raw jute, jute yarn and twine jute carpet, jute ropes, and other jute items.
Prospect of Jute in Bangladesh:

A ban on the use of plastic bags in different countries -- from the US to Europe, Africa, Asia and
Australia -- has opened new opportunities to export diversified jute products. The global demand for

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shopping bags is estimated to be 500 billion pieces, worth around $500 billion a year, according to
International Jute Study Group. The US, Europe and China would be the biggest markets for shopping
bags, once the ban on the use of plastic bags would fully come into force in a few years. Local
manufacturers and exporters fear they would lose the market to India, as entrepreneurs in the
neighboring country have built factories that are able to produce quality yarn, fabric and diversified
products. India exported more than 70 million jute shopping bags in 2012-13, against around 1 million
by Bangladesh.

 A global consciousness has already developed against the use of artificial fibres and synthetic
products, which are now being replaced by the environment friendly jute goods.

 The Govt. of Bangladesh banned production, sale and use of polythene from 01 March, 2002. As
a result the demand of Jute & Jute goods is increasing.

 There is a huge local demand of jute stick as a primary substitute for diesel/wood. Moreover,
Jute sticks are very useful material for various purposes as fencing and roofing materials for
making sheds. These are also used as important industrial raw material for making particle board
whose demand is increasing in national and international Market.

 Due to increasing price of Jute & Jute goods more entrepreneurs (SMEs) are entering the market
for Jute business and introducing new Jute Diversified Products.

 Series of R&D project and programmers had been implemented and these have generated new
technologies for production of diversified jute products. There is huge demand of Diversified
Jute Products in National and International Market.

 The first and foremost strength of the Bangladesh Jute Industry is that it is based on the raw
material that is available at the doorstep. Moreover, the quality of the raw material is the best
available in the world. Bangladesh is the natural abode of jute cultivation on account of its
climatic situation and soil condition. Bangladesh is recognized as one of the major jute
producing countries.

 Jute is a rapidly growing crop with 120 days for its production. In addition, Jute and Jute
products are renewable, biodegradable, eco-friendly, easily disposable and natural commodity.

 The availability of cheap labour in Bangladesh is a known fact and jute industry is bestowed with
this factor of production. The activities pertaining to the traditional jute industries do not require
much skilled labour. Again, the skill that is required can be improved through simple training on
the job itself. There are educated and professionally experienced people in the country to run
industries including jute industries.
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  Bangladesh jute industry is based on old technology and machinery. New technologies for
production of diversified jute products are now available. Bangladesh is in jute business for
decades. There are adequate arrangements for facilitation of jute trade inside and outside the
country. An elaborate system exists for procurement and disposal of raw jute.

 Jute is one of the most versatile natural fibres used as raw material for packaging, textiles, the
non-textile and agricultural sectors. Some jute products are naturally fire resistant.

Constraints-Delaying the Take-off of this sector:

The cost of producing quality yarn is 40 percent higher in Bangladesh than India because of
technological disadvantages. India has set up composite jute mills with modern machinery and
technologies to make fabric, dyeing or lamination under one roof, he said. Bangladesh has nearly 250
jute mills, but none with dyeing and lamination facilities, which are essential to producing diversified
products.

 The cultivable land is decreasing due to increase of population day by day. To meet the demand
farmers motivate to take up high earning agricultural activities resulting in decreased Jute
production. Water is necessary for Jute retting. Scarcity of water will threat jute retting in future
resulting motivates farmers to take up other agricultural activities.

 Other countries have successfully established a favourable image of their jute diversified
products in the international market. Indian, Chinese and Vietnamese jute diversified goods are
more popular because of their product range and depth, colours, designs and quality.

 Extensive governmental support in the jute sector by neighbouring countries made their Jute
products more competitive in international markets.

 Unavailability of high yielding varieties of jute seed leads farmers to use poor quality seed
resulting in lower productivity. Low price of raw jute for which the farmers are losing interest to
continue production of jute. Higher production cost compared to competing countries.

 Absence of cost effective modern jute cultivation systems motivates farmers to take up other
agricultural activities resulting in decreased jute production. Lack of practical experience for jute
retting in modern system.

 Lack of advanced technology/machines and unavailability of spare parts in some jute mills lead
to use of obsolete machines resulting in reduced production efficiency. Old machineries, low
productivity, irregular power supply, labour unrest and political unrest in the manufacturing
sector.

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  Continued financial crisis in the public sector jute mills. Competition of substitute synthetic
products in international market as well as in the domestic market. Low export price of jute
goods in the overseas market.

 Lack of skilled labour and skilled designers in the jute sector leads to production of inferior
quality products resulting in loss of competitiveness in the export market.

 Inadequate R & D facilities at both public and private levels in the Jute sector leads to absence of
continuous product innovation resulting in loss of growth opportunities.

 Inadequate backward linkages in the Jute sector leads to import of accessories by local producers
resulting in higher cost of production.

 Lack of market development knowledge by the exporters lead to ineffective promotion of

products in both international and domestic markets resulting in loss of potential market
opportunities. Lack of awareness of Jute diversified products in the domestic market.

 Bangladesh Jute Research Institute (BJRI) lacks close coordination with the Ministry of Textiles
& Jute as well as Jute Industries as it is under the Ministry of Agriculture. This lack of
coordination creates a problem in maintaining the supply chain of certified jute seeds on which
the quality of Jute fibre vis-a-vis the production of quality Jute goods depends.

Policies and Possible Solutions:

 There has been a demand from the industry circle to allow them to procure independent electric
generators for industry's use under a special 'long term soft loan' arrangement. This issue needs
serious consideration of the government.
 The Jute Sector should be considered a "Thrust Sector". The Government should take strategic
policy measures for the promotion of jute sector in short, medium and long terms.
 The management situation of the Jute sector should be improved bringing all Jute related
activities including Bangladesh Jute Research Institute (BJRI) under a single umbrella of the
Ministry of Textiles & Jute.
 High yielding variety (HYV) of Jute seeds should be available at farmers level.
 The remunerative price of Jute fibre should be ensured at growers level.
 The research and development activities should be continued and strengthened for production
and processing of raw Jute to increase yield and reduce production cost by interacting with
International promotional bodies.
 The government may consider creating a technology up-gradation fund for the jute sector.

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  The Government should give mandatory order to use Jute bags as packaging materials for
specific sector like food grain, cement, sugar, fertilizer etc.
 The Jute industries in Bangladesh need immediate Balancing, Modernization and Rehabilitation
(BMR) Programme to increase the productivity and lowering down the production cost.
 Strong and committed endeavors are essential for market survey and market promotion for
increasing the volume of export of both raw jute and jute products. For this it is necessary for the
Government to come forward and organise international market promotion facilities on a regular
basis and organise Buyers-Sellers Meet (BSM) , participation at the International Fairs, etc., in
association with the Industry.
 The Jute industry lacks adequate trained human resources at all levels of production causing
serious handicaps in productivity of both man and machine and quality of products. A need
assessment and comprehensive Human Resource Development programme should be prepared in
consultation with the Industry and implemented through the channels of exiting
educational/training Institutions.
 The Jute Sector Restructuring programme (JSRP) should be reintroduced with the help of donor
agency/other sources.
 To promote new products in the international market, it is necessary to establish acceptable
international standards. The Government should take necessary measures for promoting and
adopting standardization of all jute and jute products.
 In view of the banning of polythene, there is an urgent need for development of cheaper jute
bags. For these R&D organizations both government and private should put their concerted
efforts into such development.
 The Government should be approached to set up some sort of mechanism to maximize internal
usage of diversified new jute products including usage by the relevant government departments.

Jute Promotion, Marketing and Innovation

Promoting jute and jute products are always been a problem that pave the way of its success. Lack of
using modern promotional means and distribution methods are causing negative jute market demand
over the years. Even many of the jute manufacturers and marketers do not have sufficient expertise of
how they can effectively promote their products as many of them are not reluctant to hire professional
marketing personnel; because, most of them are low capital firms having small number of individuals
working. Hence, they are mainly relied on „copy cat‟ marketing strategy by following other’s traditional
pro-motion and distributional system; e. g. merchant show room and delivery through retail outlets.

Modern jute product should have

Variety Wide & Larger varieties that omit all substitute and competing product’s need.
Quality Higher quality that negate competitors.

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 Design Superior design that best reflect the customer’s expectation.
Features Improved & sophisticated features that differentiae the product from rest of the market
players.
Brand Strong Brand Identity that secures significant position in the mind of the Target
Identity customer.
(name)

Packagin User-friendly packaging that portray ease-of-use and communicate user information on
g top.( for shopping & specialty jute products)
Services Outstanding customer and after sales service that exceeds customer desire.

Specific tools for 21st Century Jute Marketing:

a) Larger In-Store Display/ Partnering Display

Wider assortment of in-store display are considered to be the best promoting and marketing means for
jute products focusing specially on the variety, ingenuity and environmental friendliness of the product.
Besides using their own in-store display centre and show room that requires larger sole investment, jute
marketers can also partner with other existing super shop, chain shop and mega shop to display and sell
jute products by establishing a within store jute corner e.g. Partnering with Wal-Mart, K-mart, Aarong,
Bigbazzar etc. would add a new dimension in jute sec-tor.

b) Connecting to Global Market-Space

Modern market requires modern tools and marketing means to cope with the market pace, therefore
demands to be connected to the global market-platform by going beyond to physical market place.
Connecting to global gateway, e-commerce will eventually help the jute marketers to increase their
marketing scope by shifting to what 21st century customers have demanded the most.

c) Frequent Jute Trade Fair

Trade fair is known to be the traditional means of commodity promotion that is also very effective in
present days marketing. Jute marketers can also leverage this tool with others to have the greater
awareness and sales. Frequently organizing Jute trade fair with the help of local authority or government
will surely be the best local promoting means of jute and other allied fibers products.

d) Establishing Sector Specific Buying House

Success in apparel industry in countries like China, Bangladesh, India, Vietnam, and Sri-lanka are vastly
attributable to the effort of buying house concepts in this sector. Same buying house concepts could be
used in jute sector as well. Therefore, establishing separate jute buying house will be one of the new
scope to successfully promote jute sector and its products.

e) Co-Branding With Regular Apparel Brands,

Promoting one new brand with another established brand together is known as co-branding (Keller,
2011). Most of the co-branding is formed with similar products. As jute and jute composite could be
used with others textile fibres to make innovative finished product, using this as a meaning and
leveraging with existing apparel brands, jute manufacturer can effectively co-brand their product. e.g.

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jute producer could tie up with denim, cK, Levi and other strong brand in innovating newer products and
promote as co-brands.
In conclusion, jute marketers are suggested to use its environmental friendliness and ecological
helpfulness for man-kind in developing communicational means and value propositions. They can also
blend other forms of eye-catching marketing means to establish and create larger product awareness. e.g.
fashion show, Kiosk ads, free standing bill board and road shows are now widely spread forms of neo-
marketing.

Jute……the green effect

 In 120 days one hectare of jute plants absorb about 15 MT of CO2 and liberate 11 MT of O2.
 Kenaf plant absorbs CO2 from the atmosphere more than any other crop.
 Every hectare of kenaf consumes 30-40 tons of CO2 for each growing cycle which equals to exhaust
from 20 cars in a year.
 1 MT of PP releases 7 MT of carbon dioxide (CO2) in the nature.
 Jute products are carbon neutral if the entre life cycle of the product is taken into account.
Push-Needed to Revive the Jute products Global:

Research shows that low price penetration, offering product at a lower price to offend the existing
competitor at the initial stage to generate larger volume and greater market awareness, is very effective
to enter into the market. Later, following the product life cycle, jute marketers need to adjust the price
according to the value it provides to the customer and make it global.

Strategy Description

Dynamic Pricing Adjusting jute price continuously to meet the

characteristics and needs of individual customers and
situations. It is also effective to keep up with the
market pace.
Promotional Pricing To generate short run sales volume and market
demand, jute marketer can use promotional price
adjustment strategy by reducing price temporarily.
Mostly used for adjusting seasonal sales variation.
Psychological Pricing Sometimes jute marketers can adjust price only to
have psychological effects in the mind of the customer
as customers perceive higher-priced products as
having higher quality.
Discount & allowance Pricing Cash discount, quantity discount, functional discount
or promotional allowances are the forms of this
pricing strategy. Used mostly for store traffic.
International Pricing Adjusting price for international markets. Sometimes,
also termed as International segmented pricing.

Conclusion:

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Bangladesh can claim as a country of jute as everywhere in this country jute and allied fibers can be
grown. Bangladesh has got relative advantage on the production of best quality jute fibre. Though uses
of traditional jute products are declining jute has versatile intrinsic and extrinsic properties. So a wide
range of diversified jute products can be produced by exploring these properties. These diversified
products are biodegradable, photo biodegradable, non toxic, non plastic, acidic, hydrophilic, high
absorption of UV capacity & moisture, eco-friendly and easy disposability. These products not only
preserve environment but also help to protect environment from degradation.

Mulitfibre-Composite Concept with vertical and horizontal diversification application areas of jute &
jute products can be explored in wide dimension. In fact scientific and technological information of
production of these diversified jute products are more or less available. It needs concerted and
international intervention to develop marketable diversified jute products on needs basis. A huge
potential market of these products is created in the developed countries. To convert these potential
markets into real market, comprehensive market promotional activity is highly needed. In this respect
International Jute Study Group (IJSG) along with other international bodies can play vital role with the
involvement of relevant national and International organizations.

The era of jute is not ended. It is the beginning of jute in new Dimensions & Perspective.

References:

1. http://www.worldjute.com/about_jute/juthist.html
2. https://www.linkedin.com/pulse/brief-history-jute-bangladesh-from-dundee-mehadi-faisal
3. 21st Century: Marketing Potentials for Promotion of Jute & Jute Products-Jute Matters-Volume-0-Issue-
0-March-2014-IJSG
4. Policy & Prospect of Jute & Allied Fibers with Special Reference to Bangladesh- Dr. Mohammad
Mahbubur Rahman, Secretary, Ministry of Textiles & Jute, Govt. of the People's Republic of Bangladesh

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