Time to utilise 'jhut' gainfully

The debate on whether the byproduct of readymade garments (RMG) waste (popularly known as 'jhut') should be exported or recycled into yarn is an old one. With about half a million tonnes of jhut being yielded annually from RMG production, a substantial trade has developed around it that involves more than 20,000 traders who collect it from factories and about 300 of them export it to other countries. These importing countries are utilising jhut and recycling it into thread, a value-added item that is used by their own textile industry. So, why not Bangladesh? It is after all the second largest RMG power in the world global readymade apparels. Today, the country recycles a measly 5.0 per cent of this waste.

When one takes into account changing preferences of the fashion industry that is progressively placing more emphasis on recycled materials, why is Bangladesh not taking advantage of this abundant supply of jhut? Jhut consists of cutting waste, scraps and fluffs. For years the terry-towel exporters and textile mills have been trying to attract the attention of policymakers to do something about this because they stress that jhut can be utilised more effectively by turning them into finished products for export.

The annual value of jhut export ranges anywhere between slightly over US$116 million (Export Promotion Bureau) and US$600 million, according to the Bangladesh Textile and Garment Waste Processors and Exporters Association. Regardless of this data discrepancy, the fact that jhut from Bangladesh is in high demand in other countries (which as stated before) are turning what is treated as 'waste' in Bangladesh into 'finished products' there retailing at a much higher value. Industry insiders state that 90 per cent of this RMG byproduct makes its way to European Union, the United States and India.

The value of recycled textile waste could potentially earn the country anywhere between US$4.0-5.0 billion but that requires policy support which has not been forthcoming. According to the RMG representative body, the BGMEA estimates that the industry is producing around 400,000 tonnes of "recyclable pre-consumer waste" every year. In the absence of a comprehensive policy on recycling, the country is losing out on big export earnings.

Given that the country is facing an uncertain global economic climate brought on by external factors beyond its control, it is now more imperative than before to boost exports. The dollar crunch is playing havoc with its balance of payments and repayment of billion-dollar loans taken in the past decade for infrastructure development is gradually coming due. In that respect, every avenue to boost sales by the RMG sector must be prioritised. Recycling jhut presents a unique opportunity as it aligns with "a change in Western customers' taste influenced by environmental concerns".

Reportedly, a lot of political clout is involved in the export of jhut and that perhaps accounts for discrepancy in reporting the actual value of the byproduct being exported from the country. Even if one is to take the highest export value of $600 million as the benchmark, the fact --- to which the BGMEA subscribes to --- that $1.0 billion jhut can be transformed into apparels worth $3.0 billion in the export market simply cannot be overlooked, especially in today's economic climate. There is ample evidence that importing countries of Bangladesh-origin jhut have been turning this waste into yarn and fabric to suit the demand of the more discerning foreign buyers.

Bangladesh has been missing out on this lucrative business for long, and because of the lack of interest (for years gone by) from the industry that produces jhut in the first place, other countries have benefitted from our ignorance. Of course, it is impossible to ignore the fact that the jhut business today involves some 300 exporters, more than 20,000 traders, some 0.6 million workers and a million dependants. However, given the gains the country will reap by stopping the export of jhut in its raw form and aiding in the expansion of the recycling sub-sector far outweigh whatever revenue the country is earning presently from wholesale export of jhut.

As reported by this newspaper, some RMG factories have already started manufacturing yarn and fabric. This is not limited to domestic manufacturers, there is also foreign investment being made in the country to manufacture yarn. The technology and the intention to make yarn locally exists, and so does the raw material - the only thing missing is the policy framework that would incentivise the recycling sub-sector to flourish. This is an opportunity for the country to add yet another component to the supply chain that will make the RMG sector more independent and at the same time augment income through value addition. As it is impossible to predict how long the dire economic conditions will last, it is now more imperative than ever to find every opportunity to expand the yarn manufacturing sector to conserve foreign exchange by reducing import vis-à-vis boost exports to bring in much needed foreign currencies.

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