Reduced jute consumption causes environmental degradation

KARACHI: The export, consumption and production of jute are gradually declining in the country, which calls for immediate attention of the government, said Muhammad Younus, Secretary General of Pakistan Jute Manufacturers Association (PJMA), on Thursday.
The production of jute (hessian, sacking, and others) in the country was 103,957 tons in 2003/04, but it stands at 101,722 tons in 2013/14, while it touched heights of 137,411 tons during 2008/09. Similarly, the consumption of raw jute in 2007/08 was 134,427 tons and now in 2013/14 it came down to 108,917 tons, according to the data. The consumption patterns reached a peak of 145,147 tons in 2008/09.
The declining pattern of consumption and production has adversely affected exports, as well.
“The government should introduce mandatory packaging acts like many regional countries have done. But in Pakistan the situation is entirely different. The government itself contributed heavily to the environment degradation in 2014 by using 64 million polypropylene bags (equivalent to 3.520 billion polyethylene bags) for wheat and grain storage,” Younus said.
The exports of jute goods were 13,563 tons in 2007/08, which touched the highest figure of 19,102 tons in 2012/13, but now it fell down to just 10,039 tons in 2013/14. In contrast, the import substitution has also declined from $100,350,000 in 2006/07 to $95,828,000 in 2013/14, whereas it touched the heights of $116,291,000 in 2008/09.
“The jute sector in Pakistan is under tremendous pressure due to several challenges. Some of these encompass synthetic packaging like PP/PE, lack of research, development and innovation, import dependence, labor intensive segment, and rising food commodity prices,” Younus said, adding, the sector is in need of government support in order to become one of the key sectors of the country.
He said import dependence of raw material could further be reduced if the government promotes jute production. “Pakistan used to be the biggest importer of raw fibre for its domestic consumption, but now China and India lead the fibre imports market,” he added.
In the region, India is leading producer and the biggest consumer of jute with around 45 percent contribution to the total jute produced in the world, while Bangladesh is the largest exporter of raw fibre.
Similarly, he said, this sector came under textile domain, but no export subsidies on finished goods were given by the government and this factor did not let exports increase.
Besides, he said, the jute industry is labour intensive as compared to other industries in the country. “The manufacturing wages as percentage of manufacturing cost in the jute industry is around 20 percent, while it is seven percent in textile and three percent each in polyester and tractor industries,” Younus said.
This shows the industry needs support from the government in terms of utilities, including power and improvement in laws regarding minimum wages and labour.
“The government should also help the cottage sector grow. The progress of the allied sector of the jute industry would prove much beneficial for the country’s economy,” he said.
There are five mills in the private sector and the total capacity of the industry is 125,000 tons per annum with the current production level of 100,000 tons. The direct employment in the industry is 25,000 and it provides indirect livelihood to 100,000 people. If provided with proper working environment, not only can the number of firms present within the sector increase, but the livelihood of many can also augment.
Furthermore, it can also lead to a positive impact on the exchequer.
He said the government should encourage the use of jute instead of polypropylene with regard to wheat storage. Jute has long life with multiple usage and can withstand sunlight, intense weathering to keep grain quality intact. It is biodegradable and eco-friendly, he said.
PP bags have shorter life with single usage and cannot withstand sunlight and intense weathering. They contain carcinogenic contents (that cause cancer) that affect quality of grains. They also carry toxic pollutants with harmful emissions throughout the lifecycle, he added.