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The possibility of mass production of paper from jute pulp is hardly news. Years ago, Bangladeshi scientists successfully conducted genome sequencing of jute. The hope had been that out of this accomplishment would come the next step, i.e., some government directive leading to a policy whereby the 'golden fiber' would find new meaning in Bangladesh's economic development. Sadly, that hasn't happened. But why?
Today, the economy is in trouble with its ever-shrinking foreign exchange reserve. Yet, for all practical purposes, policymakers remain focused on an import-driven "development" which is increasingly looking out of touch with reality. Despite other sectors taking up the collective imagination of people, jute could be so much more than what it is today in Bangladesh. If policies were undertaken to commercialise jute pulp for paper production, a significant amount of foreign exchange could be saved. It would save livelihoods of millions of people engaged in the production of jute. Five years ago, it was estimated that the country was importing 500-600 tonnes of pulp annually worth US$600 million. Switching to jute pulp (for paper)would also aid in mitigating significant deforestation in the country as the bulk of paper pulp and other pulp products like viscose, cellulose derivatives are obtained from wood.
The Business Initiative Leading development (BUILD) has been working on this issue for the last few years and some interesting data have surfaced. Six out of every 10 paper mills (approximately 100 in operation in the private sector) are small-scale. The pulp used today is largely imported, but the process of import is impeded by the fact that these mills do not traditionally have import licences. Hence, their import cost is much more. The problems associated with import (and other factors) have led to many of them shutting down and also there is production overcapacity. So far as import of pulp is concerned, cost of imported wood pulp shot up nearly 100 per cent to US$810 (2018) from $470 (2016). As per BUILD data, price of soft wood pulp (per ton) also registered a near 100 per cent increase retailing at $950 (2018) from $500 over the same period.
Use of jute pulp for paper is not simply a question of import substitution but there is a substantial gain to be made in the export market. Recent market trends point to the fact that China and the European Union are in the process of shutting down their respective paper mills on the grounds of higher production costs and environmental concerns. Bangladesh has a huge advantage here. It is the second largest producer of jute that employs approximately 5.0 million people (directly and indirectly). Over the years, jute farmers sustained losses --- although the prices have gone up in recent years --- because the uses of jute have not seen diversification. So, jute-pulp-to paper could be just the thing needed to revive jute economy.
There exists an ever-increasing demand for products made from paper. If the right policy framework was in place, it could lead to value-added products made from jute. India, the largest jute producer has gone in that direction. That country is reducing export of raw jute and instead using this precious fibre to make value-added products for both domestic and foreign sale. With the advent of better technology, experts opine that low grade jute can produce up to 60 per cent of its weight. Looking at the data available, it is clear that jute can work "as an alternative to wood-based fibre for making pulp which will be more environment friendly" and that up to 40 per cent pulp could be produced from green jute plants.
According to a presentation titled 'Reviving the Past Glory of Jute. Jute-based Pulp & Paper for Industrial Diversification' by BUILD in 2021, the country exported jute and jute goods (July - February FY 2020-21) worth $765.63 million, a 27 per cent rise over the preceding fiscal. With 4.0 million people engaged in jute production (same as the RMG sector), what has often been overlooked is this sector's potential for growing by leaps and bounds if it got some policy support. As stated before, Bangladesh is exporting mostly raw jute, while India has already begun shifting away from raw jute export to value-added products which bring in more foreign exchange.
For the private sector (which now dominates the market in light of closure of big government-owned jute mills), the State must shift its focus to developing the sector by enacting a jute-based pulp and paper-producing policy. This needs to be supported by incentives (as a fledgling industry) so that more private sector entities (domestic and foreign) may be encouraged to make investments here. Since raw material for making pulp and labour is in abundant supply in the country, what is missing is the right policy support to push the industry in the right direction. Import-substitution policies are the need of the hour as the country faces multi-pronged problems with foreign exchange reserves. The private sector is ready to take the challenge if the government is up to the task of putting in place the various tools needed to make Bangladesh 'the land of golden fibre' again.