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Exploring the Future Potential of Jute in Bangladesh

Author

Listed:
  • Sanzidur Rahman

    (School of Geography, Earth and Environmental Sciences, University of Plymouth, Plymouth PL4 8AA, UK)

  • Mohammad Mizanul Haque Kazal

    (Department of Development and Poverty Studies, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh
    These authors contributed equally to this work.)

  • Ismat Ara Begum

    (Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
    These authors contributed equally to this work.)

  • Mohammad Jahangir Alam

    (Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
    These authors contributed equally to this work.)

Abstract

The study assesses the future potential of the jute sector in Bangladesh by examining its growth performance, international competitiveness, profitability, and production efficiency using national time-series data of over the period 1973–2013 and farm survey data from 289 farmers from two major jute growing areas of Bangladesh. Results revealed that the jute sector has experienced substantial growth in area, production, productivity, prices, and exports. However, productivity has stagnated during the latter 10-year period (2004–2013), while it grew at a rate of 1.3% per annum (p.a.) during the first 31-year period (1973–2003). Only traditional jute production is globally competitive, although financial profitability of white jute is relatively higher (benefit cost ratio = 1.24 and 1.17, respectively). Land, labor, and irrigation are the main productivity drivers for jute. The mean production efficiency of jute is estimated at 75% indicating substantial scope to improve yield by eliminating inefficiency. Marginal farmers are relatively inefficient. Policy implications include investments in research and development, irrigation, and tenurial reform and export protection for white jute in order to revive the sector and boost export earnings.

Suggested Citation

  • Sanzidur Rahman & Mohammad Mizanul Haque Kazal & Ismat Ara Begum & Mohammad Jahangir Alam, 2017. "Exploring the Future Potential of Jute in Bangladesh," Agriculture, MDPI, vol. 7(12), pages 1-16, November.
    • Handle: RePEc:gam:jagris:v:7:y:2017:i:12:p:96-:d:120345
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    References listed on IDEAS

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