The New Nation - Internet Edition

ACCORDING to experts as reported recently by media, jute can be used in manufacturing more value-added products 'to revitalise' the industry that involves hundreds of thousands of farmers and workers. Four of the country's private sector jute mills have gained 10 per cent additional productivity without increasing costs under a Japanese 'Kaizen' management method or continuous improvement. Japanese and Bangladeshi experts, involved in the process, expressed their optimism that the method could strengthen competitiveness globally and improve the quality of jute products, leading to an increase in value and volume of exports.

The Japan International Cooperation Agency selected two sub-sectors - software and jute - to support Bangladesh's export diversification efforts at the request of the government and sent an expert team through the pilot project. The 'Kaizen' method, recognised as effective, in South East Asia and South America, would be replicated in jute mills to help boost productivity. It has been acknowledged that the Kaizen process would reduce costs of production. Revitalisation of jute and diversification of products would help add more items to the country's narrow export basket.

The country's major export items include readymade garments, frozen food, jute and jute goods, leather, tea and pharmaceuticals. Export destinations are also a few - the USA and the European Union, although Bangladesh exports 166 items to 176 countries. Jute and jute goods accounted for 90 per cent of exports way back in 1972 and that came down to 25 per cent in 1991, and to approximately four per cent in 2007 despite incremental growth in jute exports in value. A researcher, however, explained that the decline of the jute sector was caused by competition with synthetic products, old machinery in mills, low quality of products besides rampant corruption and widespread management inefficiency.