Full enforcement of ‘Mandatory Use of Jute Packaging Act, 2010’ to create demand of 840 mn jute bags: Study
12/31/11unb
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Dhaka, Dec 31- Demand for 840 million of jute bags will be created in a year for packaging of selected agricultural and non-agricultural products if the ‘Mandatory Use of Jute Packaging Act, 2010’ can be enforced fully.

This will require 539,200 metric tons of raw jute in a year, equivalent to about 77 percent of the total production of the fibre, according to the findings of a study revealed at a workshop Saturday at BRAC Centre Inn in city’s Mohakhali.

The study titled ‘Jute and Bangladesh Economy: Study report on jute
mill machinery up-gradation for higher productivity’ was jointly
carried out by the Centre for Policy Dialogue (CPD) and Bangladesh
University of Engineering and Technology (BUET) in association with
Katalyst, a project of the Ministry of Commerce.

The selected agricultural products under the ‘Mandatory Use of Jute
Packaging Act, 2010’ are rice, wheat, pulses, oilseeds, potato and
sugar while the non-agricultural products referred to cement.

The study was based on the data collected from 10 selected jute mills
of both spinning and composite categories under the authority and
membership of Bangladesh Jute Mills Corporation (BJMC), Bangladesh
Jute Mills Association (BJMA), and Bangladesh Jute Spinners
Association (BJSA).

CPD senior research fellow Dr. Khondaker Golam Moazzem presented the
economic part of the study findings while Dr. Nur Al Quddus of BUET
the technical part of the findings.

The study findings showed that there are ample scopes for raising
productivity in different kinds of operation of jute mills.

Proper balance of machines and workforce will result in significant
cost cuts which could be in nominal terms as high as Tk 537,000 in a
year for a mill.

Jute procurement during the harvest season could save up to 28
percent production cost (in nominal term) compared to post-harvest
season while the possible savings of electricity cost will be much
higher in case of public sector jute mills.

For private sector jute mills, the savings will range between Tk 34
lakh to Tk 63 lakh.

The findings also showed that productivity of the mills could be
increased by about 10 percent with proper production balancing,
proper maintenance practice, and scheduled overhauling of the old
machinery.

The government should provide the jute mills with timely financing
and training facilities and educational programmes for employees as
well as other institutional support.

The survey also put forward a set of recommendations including
penetrating the market potentials at domestic and international
levels, finalise the action plan of the jute policy, improvement of
production process, improvement of knowledge-base regarding fibre
quality, building a strong base for research and development (R&D),
and investment for technology upgradation.

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