The jute industry is seeking the government’s support to increase export of value-added jute products which currently stands at around $ 14 million only. All it needs is government’s resolve to avoid using hazardous packaging material like polypropylene for food storage and utilise jute so that the industry can plan investments in capacity utilisation and local cultivation of jute.
This would not only make the country self-sufficient viz raw material but also help concentrate more on finding export avenues as the majority of foreign markets are in tight grip of two regional countries.
“If the government provides support in technical infrastructure for industry along with guidance and long-term policy support for jute cultivation in Pakistan to substitute import of raw material, the exports of jute products after value addition could earn handsome amount of foreign exchange for the country,” said Saqlain Akhtar, Senior Vice President of Pakistan Jute Mills Association (PJMA).
In a statement about the industry’s process, potential and impediments, he said the industry was established in 1966 on the request of the then government to fulfil the local needs of grain storage whose production factories and cultivation were in East Pakistan.
“The cultivation in Southern Punjab region was started 3-4 years ago on experimental basis on a small piece of land. Now it has grown to 200 acres solely on local industry’s initiative. Therefore, the industry needs support from the government,” he added. The SVP of PJMA added that proper local production of jute will not only eliminate the risks of international trade issues but will also save foreign exchange spent on raw jute procurement from neighbouring countries. “The local production will bring the industry’s costs down and would increase production,” he reasoned.
He added that there were five jute mills in operation in the private sector with combined capacity of 1,25,000 tons per annum while the current production was 1,00,000 tons per annum.
