. .



The government must save this industry and provide incentives which are required to the mill owners.

By Dr MUHAMMED AYOOB SHAIKH
Dec 17 - 30 , 2001

Jute has an important position among the natural fibres found in the world. Jute cultivation began in Indo-genetic valley for long time ago about 800 b.c. Jute fibre has several colours but mainly it is found in golden colours, therefore it is also known as "Golden Fibre".

The area of jute crop in Pakistan dropped from 1323 hectares in 1980-81 to 22 hectares, in 1999-2000. In this way the production of jute also declined from 981 tons to 24 tons in the above same period. There has been decreasing trend of jute area and production during 1995-96 to 1999-2000. It is clear from the statistical data that the area and production of jute over the years has recorded a downward trend.

Study reveals that in our country the per hectare yield of jute crop is very low as compared to other countries. Therefore, income of the growers is also affected due to low yields. It is also clear that the yield per hectare in Pakistan fluctuates from 1097 to 1091 kgs. During the last five years i.e. from 1995-96 to 1999-2000, the average recorded yield has been 1095.6 kgs.

The table-1 shows the area, table-2 shows the productionand table-3 shows the yield per hectare in kgs.

In Pakistan four jute mills had been established between 1964 and 1971, Pakistan had a small production capacity, which means that virtually the entire domestic demand for jute goods had to be met through imports. To reduce dependence on imports, high priority was given by the government to the development of jute industry in Pakistan. In the wake of a liberal government policy, the jute industry has passed through an expansionary phase. The number of jute mills has now reached a fairly mature stage.

There are 14 jute mills currently operating in the country with an installed capacity of 150,000 tons. At present the industry is working with an installed capacity of 38894 spindles and 2124 looms. Four of these units are closed due to shrinking demand of jute goods in the country. The production of jute goods declined by 9.3% in July-March 1999-2000. Over the corresponding period of last year by moving 57.3 thousand tons this year from 63.2 thousand tons in the comparable period of last year. Table-4 shows the productionof jute goods and number of looms and spindles. Out of the 14 jute mills eight are located in Punjab, four in Sindh and one each in NWFP and Balochistan. All these are in the private sector and employs more than 20,000 workers.

The jute industry is based on raw jute imported from Bangladesh. It consists of integrated units equipped with facilities for spinning, weaving and finishing of both hessian and sacking and production of carpet backing. The principal buyers of jute goods are public sector corporations and other government agencies. Nearly all sacking out-put is used for procurement and storage of food grains.

Besides being used for packing and transportation of major agricultural commodities such as rice, cotton, wheat, jute goods are also used for packing and transportation of minor crops like pulses, ripe seed, cotton seed etc. Jute bags are cheaper, stronger, safer, easier and are flame retardant and hooks can be used by labourers in shipments without damaging the bags. Besides, jute bag can be revised many times or resold to recover cost. No fibre, either natural or synthetic can compete with true jute fibre economically either natural or synthetic can compete with true jute fibre economically or quality wise.

Jute is produced from a renewable source. Being versatile, the fibre has multipurpose use. Jute is also used for the production of various kinds of twine, Gunny bags Broad loom cloth for carpet making, matting carpets, carpet yarn, brattice cloth, filter cloth, wire rope cores plaited soles, cable filing, wrappings and steel iron tube and electric cables wrapping and jute sticks make the best raw material in the chipboard industry.

It is clear from the table-5 that in 1996-97 the import of jute commodities increased by 33.77% and value also went-up by 38.47% when compared to the import of jute commodities during 1995-96. During the year 1997-98 import rose by 10% and value reduced by 11.68%. Study reveals that the import of jute commodities declined by 25.56% and value also declined by 19.15% in 1998-99 in comparison of 1997-98. Similarly, import and value of jute commodities increased by 71.1% and 23.88% in 1999-2000 in comparison of 1998-99.

In spite of over production due to which the jute mills are increasing losses, the import of jute goods has continued to increase. The continuing rise in imports is likely to impede the domestic industry's growth and now four mills closed down. The jute industry has asked the government for protection. The import of jute goods is justified on the ground that the prices of locally manufactured jute goods are not comparable with those of imported substitutes. However, industry's sources counter that the local industry's products should be patronized, arguing that it is impossible for the jute industry to match the prices of imported jute goods from Bangladesh which sells its products at dumping prices, Bangladesh follows such a policy despite the availability of indigenous raw material and cheaper labour and power rates.

Conclusion

It is concluded from the above study that the area of jute crop declined by 29.03%, production decreased by 29.14 and yield per hectare declined by 54%. Import of jute commodities increased by 18.89% and value wet-up by 22.48% in the year 1999-2000 when compared to 1995-96.

The government should permit to imports of raw jute according to demand to feed the jute mills in the country because their rated capacity for consumption of raw jute per year about 150,000 tons. To create fair competition prices of jute product, the government should also allow private traders to import may quantity of jute bags and jute goods required within the country. It is also noted that the jute industry is not placed in a favourable position. The government must save this industry and provide incentives which are required to the mill owners.

Table-1
Area of jute (In hectares)

Year

Sindh

Punjab

N.W.F.P.

Balochistan

Pakistan

%(+)
%(-)

1995-96

3

28

-

-

31

-

1996-97

3

26

-

-

29

6.45

1997-98

3

24

-

-

27

6.89

1998-99

-

23

-

-

23

14.8

1999-2000

-

22

-

-

22

4.30

Total

9

123

-

-

132

.

Average

1.8

24.6

. .

26.4

.

Share

6.8

93.18

. .

100

.

Source: Agricultural statistics of Pakistan 1999-2000 P-36

 


 

Table-2
Production of jute (Production in tons)

Year

Sindh

Punjab

N.W.F.P.

Balochistan

Pakistan

%(+)

1995-96

3

31

-

-

34

-

1996-97

3

29

-

-

32

5.88

1997-98

2

27

-

 

29

9.37

1998-99

-

26

-

-

26

10.34

1999-2000

-

24

-

-

24

7.69

Total

8

137

-

-

145

-

Average

1.6

27.4

-

-

29

.

Share

5.5

94.48

-

-

100

.

Increase over the period

29.41

-

Source: Agricultural statistics of Pakistan 1999-2000 P-36

 


 

Table-3
Yield per hectare of jute (In kgs)

Year

Sindh

Punjab

N.W.F.P.

Balochistan

Pakistan

%(+)(-)

1995-96

1000

1107

-

-

1097

-

1996-97

833

1115

. .

1086

-

1997-98

667

1125

-

-

1074

.

1998-99

-

1130

-

-

1130

.

1999-2000

-

1091

.

-

1091

.

Total

2500

5568

-

-

5478

-

Average

833.3

1113.6

. .

1095.6

.

Source: Agricultural statistics of Pakistan 1999-2000 P-137

 


 

Table-4
Production of jute goods and number of looms and spindles

Year

Production of jute goods (000 Tons)

%(+)
%(-)

Looms

Spindles

1995-96

54.4

-

2198

42000

1996-97

50.2

-

1844

34832

1997-98

68.5

-

1946

37876

1998-99

63.2

-

2008

38894

1999-2000

57.3

-

2124

38894

Total

293.6

.

10120

192496

Average

58.72

.

2024

38499.2

Source: Economic survey of Pakistan 1999-2000.

 


 

Table-5
Import of jute commodities

(Qty. 000, tons) (Value in Million Rs.)

Year

Quantity

Variation

Value

Variation

1995-96

59.8

-

842.3

-

1996-97

80.0

33.77

1166.4

38.47

1997-98

88.0

10.00

1030.1

-11.68

1998-99

65.5

-25.56

832.8

-19.15

1999-2000

71.1

8.54

1031.7

23.88

Total

364.4

-

4903.3

-

Average

72.88

-

980.66

-

% Increase over the period

18.89

-

22.486

-

Source: Agricultural Statistics of Pakistan 1999-2000 Government of Pakistan, Ministry of Food Agriculture & Livestock food, Agriculture & Livestock Division (Economic Wing) Islamabad.P-230