The
cumulative effect of developments in North America, the former Soviet Union,
Western Europe, Africa and Latin America has been a steady and substantial
erosion of the export market for jute and jute goods, especially for exporters
in Bangladesh. At the same time, demand for jute has increased in India, which
has become the centre of both global production and consumption.
Jute
could once again compete in export markets if producers and processers could
convert to higher quality fibre and increase productivity. Producers are facing
a unique opportunity with the increase the price of oil, which hurts the
competitiveness of otherwise cheaper synthetic jute substitutes. The technology
is available today for the production of higher quality yarn and fabrics from
natural jute.
The
other key element to a new strategy is the development of new major, rather
than niche, markets. If there is to be a shift from Indian consumption of
sacking to alternatives, it will involve developing markets for hundreds of thousands
of tons of jute.
Report
A Road Map for Jute, ITC’s research paper on the challenges and
opportunities for the industry, was produced in collaboration with the
Dhaka-based International Jute Study Group. To download the report in pdf free
of charge, click here.
External sites
Here are links to associations that can provide further information relating to jute: