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P RESENTED BY:

IFFAT ARA AHMED NIKITA MASHIAT S.M. ABU RAYHAN FATEMA BINTE MANSUR

ID # 2007-1-10-038 ID # 2007-1-10-140 ID # 2006-1-10-068 ID # 2006-1-10-114

J UTE D IVERSIFIED P RODUCTS

O VERVIEW: Introduction Major jute producing countries Portfolio of Bangladesh Bangladesh major jute producing Associations Average Production and Sales Trend Major Importers of jute products Market survey for jute diversified products Entry mode decision of Foreign Companies Bangladesh involving in different Economic Integration Declining trend and drawbacks Policy implication Recommendation and Conclusion .

I NTRODUCTION JUTE A NATURAL FIBRE .

D IVERSIFIED P RODUCTS Jute Yarn Jute Hessian Jute bag Jute Geotextile Jute Floor covering Jute Shopping bag .

TOP JUTE PRODUCING COUNTRIES Top ten jute producers — 11 June 2008 Country Production (Tonnes) India 2140000 Bangladesh 800000 People's Republic of China 99000 Thailand Myanmar Brazil Uzbekistan Nepal 31000 30000 26711 20000 16775 Vietnam World 11000 3225551 Source: Food And Agricultural Organization of United Nations: Economic And Social Department: The Statistical Division .

P RODUCING C OUNTRIES IN THOUSAND TONES 4500 4000 3500 3000 2500 2004-05 2005-06 2000 1500 2006-07 1000 500 0 India Bangladesh Myanmar Nepal .

. The best quality jute is found at the most competitive prices from Bangladesh.P ORTFOLIO OF B ANGLADESH Bangladesh is the Home of Jute and World's Largest Producer.

B ANGLADESH MAJOR JUTE PRODUCING A SSOCIATIONS    BJMC (Bangladesh Jute Mills Corporation) BJMA (Bangladesh Jute Mills Association) BJSA (Bangladesh Jute Spinner Association) .

AVERAGE P RODUCTION .

S ALES T REND : .

6% Egypt. 7% Ghana. 5% Belgium. 16% UK. 9% Germany Saudi Arabia UK Belgium Egypt Turkey Syria Ghana USA UAE . 4% UAE. 11% Syria. 9% Turkey.M AJOR J UTE I MPORTERS Major Jute goods Importers in 2006-07 Saudi Arabia. Germany. 3% 4% USA.

J UTE P RODUCTS IN THE I NTERNATIONAL M ARKET: .

2000-01 2001-02 2002-03 2003-04 2000 Other EU GERMANY UK USA Other World .M ARKET SURVEY FOR YARN Trend in Export of Jute Yarn 140 120 100 80 '000 MT 60 40 20 0 1999.

2000-01 2001-02 2002-03 2003-04 2000 Other EU GERMANY UK USA Other World .M ARKET SURVEY FOR H ESSIAN Export Trend of Jute Hessian 200 150 '000 MT 100 50 0 1999.

M ARKET S URVEY OF F OOD GRADE J UTE B AG Projected growth in demand of Food grade Jute bags 500 INR Million 400 300 200 100 0 2002-03 2003-04 2004-05 2005-06 2006-07 .

M ARKET SURVEY FOR J UTE G EO T EXTILES Consumption pattern of Geo-Textiles Synthetic material other natural jute .

M ARKET SURVEY FOR J UTE G EO T EXTILES Trend in the consumption of jute geotextiles by European countries 1400 1200 1000 MTs 800 600 400 200 0 1997-98 1998-99 1999-2000 2000-01 2001-02 .

JUTE: P RODUCT S UPPLY CHAIN .

E NTRY D ECISION OF F OREIGN M ARKET .

B ILATERAL TRADE : B ANGLADESH AND I NDIA .

B ARRIERS : .

B ILATERAL TRADE : B ANGLADESH AND PAKISTAN .

B ILATERAL TRADE : B ANGLADESH AND C HINA .

B ILATERAL TRADE : B ANGLADESH AND A MERICA .

R EGIONAL I NTEGRATION : B ANGLADESH AND N AFTA .

R EGIONAL I NTEGRATION : B ANGLADESH AND A SEAN .

R EGIONAL I NTEGRATION : B ANGLADESH AND EU-27 .

R EGIONAL I NTEGRATION : B ANGLADESH AND M IDDLE E AST .

DECLINING TREND OF BANGLADESH JUTE SECTOR .

C HANGES IN E CONOMIC A SPECTS : FY2002-FY2007 .

M AJOR E CONOMIC D RAWBACKS OF B ANGLADESH J UTE S ECTOR :  Jute farmers getting no buyers despite bumper harvest Bangladesh unhappy over tax on 'duty-free' garment Brazil moves to file anti-dumping case against Bangladesh jute yarn The Adamjee Jute mills closure Jute price decline worries farmers     .

there is no reason to close any jute mill based on the argument that Bangladesh’s jute sector had no prospect. Second. Third.P OLICY I MPLICATIONS  First. . especially for those in the public sector. rationalization of size of the workforce in BJMC mills is urgently required. marketing system of BJMC jute mills needs to be changed.    Fourth. is urgently required. a rationalization of the size of jute mills.

CHANGES IN ECONOMIC ASPECTS: FY2002-FY2007 .

M ARKET D EVELOPMENT I NITIATIVES  Explore possibility of re-capturing some part of the secondary carpet backing market in USA .   Market development of jute sacking Development and promotion of jute geotextiles applications .

Lack of contingency plan to combat weather uncertainties as well as adverse situations.R ECOMMENDATION   Lack of crop varieties for quality fibre production.  .  Lack of infrastructural facilities and administrative goodwill. There is a strong need to develop jute genome for precise development of the crop to meet the quality attributes.

International organizations like IJO if made stronger would help to make jute more popular across the globe.C ONCLUSION  More surveys like CPD’s recent study on jute sector would help to identify strengths and weaknesses. Such surveys would help us arrest the decline of jute industry in Bangladesh and once again to take steps to bolster the industry.   .