MARKETING ASPECTS
Bangladesh is traditionally rural and agro-based, agricultural contributes largest share of Bangladesh economy i.e. 25% of the Gross Domestic Product (GDP) of the country. Subsistence/low – tech mode of production in pre-dominant in this sector. Due to mode of production and disproportionate population growth, the jute goods production could never meet the demand of the population. A shift from subsistence mode of production to capital intensive, commercially viable of production is essential to meet and sustain demand of jute fiber.
Although jute sector is striving for its existence with a huge accumulated financial burden on it and losses being incurred every year, yet the rays of hopes are not totally disappeared. As renewable, biodegradable, easily disposable and environment friendly natural commodity, there is a good prospect of Jute and Jute products which is described in brief below:
A global consciousness has already developed against the use of artificial fibers 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. JDPC has established contact with different foreign bodies which are interested in R&D activities along with commercial exploration of diversification of jute uses like, IFTH, West Australian Agriculture Department (wool service desk), Toyota Tsusho Corporation, GTZ-Progress, Innovation Bio-Fibers Corporation AG, Rovotex AG, Miaco International, MITSUI & Co. LTD, Asia-Pacific Coalition for Environment, Euro Mode Fashion, General Motor, Cosmic International Inc, Freudenberg-Vilene, different Universities of Europe and USA, Dong Bang Textiles Ltd. etc. The successful completion of these activities may open up a new horizon in Jute sector.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 labor 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 labor. Again, the skill that is required can be improve through simple training on the job itself. There are educated and professionally experienced people in the country to run industries including jute industries. Bangladesh jute industry is based on old technology and machinery. New technologies for production of diversified jute products are now available. The Ministry of Textiles & Jute is going to be published its latest Jute Policy/2007 highlighting the importance of jute in the economy of Bangladesh, its prospects and problem quite elaborately.
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 goods produced by public sector mills are marketed centrally by BJMC. There are standard procedures and contract forms for jute trade exist in private sector mills under BJMA and BJSA.Jute is one of the most versatile natural fibers used as raw material for packaging, textiles, the non-textile and agricultural sectors.
SOCIO-ECONOMIC ASPECTS
Employment is an occupation that is productive of wealth. Unemployment is the opposite of employment. When a man is out of any kind of productive work, he is said to be in a state of unemployment. Now a day’s unemployment is a worldwide problem. But in Bangladesh the problem is very acute. For the peace and prosperity of social life it is imperative that all the able-bodied persons in the society should be engaged in any occupation so that he can earn money to maintain themselves and their families. So creation of employment is a social demand.
Under the situation of project, upon implementation, will create employment opportunity for 1151 peoples of different categories. Thus the project will play a role to deducing the unemployment problem slightly. It will also improve the living standard of the employed people. At the same time employment opportunity will be created for production, supply and distribution of raw materials and suppliers. Thus the project will play a role to fulfill its special obligation to solve unemployment and upgrade the living standard of the concerned people.