Presentation on Profitability and Marketing of Jute in Bangladeshby

Uttam Deb Head, Research Divisionand Subir Kanti Bairagi Research AssociateCentre for Policy Dialogue (CPD) At the International Conference on Prospects of Jute & Kenaf as Natural FibresBangladesh-China Friendship Conference Centre Dhaka: 08-09 February 2008

I. Introduction: Jute production situationII. Objectives of the StudyIII. Input Use Level and Profitability in Jute Production IV. Marketing System of Raw JuteV. Problems in Jute Production and MarketingVI. Policy Implications Presentation Outline

I. INTRODUCTION: Jute Production Situation Trends in area, production and yield of jute: 1981/82-2007/08In 2007/08, jute production (46.22 lakh bales) was 0.5% lower than that of 1981/82 (46.46 lakh bales). Jute area has decreased from 5.72 lac hectare to 4.40 lakh hectare (23.1% decrease). Jute yield increased from 8.1 lakh bales per hectare to 10.5 lakh bales per hectare (29.6% increase).

Chart1

46.465.728.1

48.815.778.5

52.166.887.6

51.116.767.6

86.610.588.2

67.537.728.7

475.129.2

44.365.448.2

46.395.428.6

53.025.839.1

52.735.889

49.1959.8

44.534.789.3

53.15.69.5

40.744.588.9

48.665.079.6

58.245.7710.1

44.754.789.4

39.214.089.6

45.264.4810.1

47.334.5610.4

44.084.3710.1

43.764.0810.7

40.353.910.3

46.194.0211.5

48.844.1911.7

46.224434.4049210.4938182759

.

Production (lakh bales)

Area (lakh ha)

Yield (bales/ha)

Area (lakh ha), Production (lakh bales)

Yield (bales/ha)

same as BBS data sheet

Table: Jute Area, Production and Yield of Jute over the year

Area (Hectare), Production (Bales), Yield (Blaes per hectare)

District/Region2003-042004-052005-062006-072007-08

AreaYieldProductionAreaYieldProductionAreaYieldProductionAreaYieldProductionAreaProductionYield

1Bandarban Region00.00000.00000.00000.000

Chittagong00.00000.00000.00000.000

Cox's Bazar00.00000.00000.00000.000

2Chittagong Region00.00000.00000.00000.000

Comilla26608.6623042173510.6418460162710.1116442174811.151948311291171810.379

Chandpur43508.313616838258.673318040809.293790836109.09328263511302768.624

Brahmanbaria35908.533062029905.761721239149.4937140365410.58386483753372869.934

3Comilla Region106008.478983085508.056885296219.5191490901210.09909578393792809.446

4Khgrachari Region00.00000.00000.00000.000000

Noakhali506.703351006.58658579.2852900.000000

Lakshmipur4005.722289905.825241258.981122898.7377714612648.676

Feni53.2016654.92320366.2522500.000000

5Noakhali Region4555.8026402555.8915022188.611876898.7377714612648.676

6Rangamati Region1013.0013000.00000.00000.00000

Sylhet1659.191516407.03281387.58288347.76264342818.169

Maulavibazar00.00000.00000.00000.000000

Sunamgonj9006.9362351207.48897859.68823578.72497614918.089

Hbigonj6259.2157597655.9545554248.9437901038.57883978218.453

7Sylhet Region16907.99135109256.2057335478.9649011948.47164419215938.287

Dhaka51209.434827138857.6629776419710.924583547359.64456303509298258.501

Gazipur16908.601454113157.29958815119.191389015269.241410012711507211.861

Manikgonj50958.264207951256.1331402432010.0343345373510.11377513929369959.415

Munsigonj44456.973097048106.603173051998.454393755877.56422435688421657.413

Narayangonj19207.311404213005.4170284388.1835814259.02383336636209.884

Narsingdi55757.884394653957.7441735487210.315020751929.91514484415424409.613

8Dhaka Region238458.13193849218306.93151259205379.78200795212009.20195005191781701178.871

Faridpur3326012.424131043462512.904466183868513.345162134259613.15559983533045084399.538

Rajbari2074012.542600181676011.791975691869213.122452692484913.153266752276923350010.255

Madaripur1885010.812038211496010.751607981719012.972230101990212.032395072609827537210.552

Gopalgonj73509.6771079944010.651005521263311.79148905943712.551184661496917496311.688

Shariatpur108409.0598088142808.161164571747210.551843621456010.40151476201211844619.168

9Faridpur Region9104011.4910461109006511.35102199410467212.59131775911134412.541396107137261137673510.03

Jamalpur1682512.322073281715510.97188212146059.981458041321310.431377831192212019710.082

Sherpur60257.774679245908.523912338408.853397447638.18389595293473508.945

10Jamalpur Region2285011.122541202174510.45227335184459.75179778179769.83176742172151675479.733

Kishoregonj1228511.28138519147059.641417261176410.48123257684111.007522773458131211.071

Netrokona65006.974530134907.572640835068.873110046178.33384523768323998.599

11Kishoregonj Region187859.79183820181959.241681341527010.11154357114589.921136791111211371110.233

12Mymensingh Region79458.947106073558.676378767388.2555611631311.64734766372508567.982

13Tangail Region205309.51195310186708.40156873165189.861628601763210.23180380146821251668.525

Barisal21258.361776215756.421011417247.591307815787.64120512341216949.267

Jalakati1209.071088856.155231054.88512894.82429874214.839

Pirojpur509.60480456.82307494.67229496.96341241576.466

Bhola00.000156.0791284.29120224.1491000

14Barisal Region22958.421933017206.421103519067.311393917387.43129122452222729.082

Jessore1242014.341781091185514.411707901519213.372030911486813.842057441589621014813.22

Jhenaidah649011.1872536675510.8773432861712.18104974933012.231141221215913790711.342

Magura982011.101090081431511.241609561572411.761849501895711.642206402154523585310.947

Narail447510.944895748308.4540807677312.2683011736912.73937821172813881411.837

15Jessore Region3320512.314086103775511.814459854630612.445760265052412.556342886133972272211.782

Khulna35511.06392532512.16395142311.33479146910.935127698812511.639

Bagerhar1508.1512223510.833794710.9651525511.642967206243811.813

Sathkhira462512.7959163513512.9266353629213.2583343665913.298852869507660111.021

16Khulna Region513012.5464310549512.8670683676213.1188649738313.099662278558716411.097

Kustia1053011.901253491057512.041272921543712.972002671798412.952328662019323902111.837

Chuadanga1195512.531498031294013.451739881287114.111816121489614.212116581226218452715.049

Meherpur1191513.861651981329514.081872451273115.351953671512314.782234751232216625713.492

17Kustia Region3440012.804403503681013.274885254103914.075772464800313.926679994477858980513.172

Patuakhali1103.54389903.4831300.00000.0002427611.367

Barguna102.102153.601800.00000.0000-

18Patuakhali Region1203.42410953.4833100.00000.0002427611.367

Bogra503511.8559687401511.3145420369311.0740889374711.644361542054633911.021

Joypurhat128010.0412853135011.3015255138311.2915620144712.331783915421630710.576

19Bogra Region631511.4972540536511.3160675507611.1356509519411.836145457466264610.902

Dinajpur57409.2853274539010.9559030463010.0646565483010.30497696780636699.39

Thakurgaon40655.082064643407.343186242657.863351741167.12292905125382487.463

Panchagar47959.574587043108.223544549908.994488164478.67559146863593608.649

20Dinajpur Region146008.20119790140409.00126337138859.00124963153938.77134973187691612778.593

Pabna1161515.161761371357510.281395471426611.961706201945112.33239844186311837009.86

Sirajgonj127605.7873813105255.685981487719.097976484179.64811207466658678.822

21Pabna Region2437510.25249950241008.271993612303710.872503842786811.52320964260982495679.563

Rajshahi332510.6435392340512.6543064376214.4354289379014.315422354966857912.479

Noagaon434010.224436141607.763226742559.4440163495310.03496943290318709.687

Natore67759.5464663283510.8030629284311.0931542312611.393561244014458810.132

Nawabgonj1257.879841057.32769997.8577710710.6711428788810.206

22Rajshahi Region145659.981454001050510.161067291095911.571267711197611.751406711327314592510.994

Rangpur1935511.02213208179809.861772761379611.81162960992311.7911696082649760811.812

Gaibanda987010.5410399880659.5777148677410.0167797638810.706834982518482210.28

Kurigram2163010.682309561888510.411965022010010.972205351891911.102099081508216398810.873

Nilphamari1649510.60174888150609.44142180135799.79132878123839.91122706945710399710.996

Lalmonirhat784010.398146070309.446635362088.135046976738.80674984565441059.662

23Rangpur Region7519010.70804510670209.846594596045710.506346395528610.595854214561949452010.84

Bangladesh40794510.73437557939049510.33403458940199311.49461855341858311.674884071440492462244310.494

Source: BBS-2394297

analysis

Table: Area, Production and Yield of Jute in Different Districts of Bangladesh: 2004/05 to 2006-07 (Average)

Area (Hectare), Production (Bales), Yield (Bales/Ha)

DistrictsAverage (2005/06 to 2007/08)Rank of Districts in terms ofShare of the district (%)

AreaProductionYieldAreaProductionYieldAreaProduction

37Meherpur1339219503314.5411913.194.14

10Chuadanga1334319259914.46121023.174.09

54Rajshahi43495903013.74312431.031.25

23Jessore1531920632813.4810643.644.38

30Kustia1787122405112.596454.254.76

57Sathkhira66348282412.52222061.581.76

40Narail862310520212.27191872.052.23

53Rajbari2210326848112.172285.265.70

15Faridpur4486252821212.0111910.6711.22

19Gopalgonj1234614744512.011413102.943.13

24Jhenaidah1003511900111.921717112.392.53Faridpur, Rajbari, Madaripur, Magura and Kurigram

33Madaripur2106324596311.8533125.015.22in terms of area (top five)

56Rangpur1066112584311.801615132.542.6715.29

1Bagerhar169197311.474746140.040.04

34Magura1874221381411.4545154.464.54

25Joypurhat14571658911.404240160.350.35

49Pabna1744919805511.3878174.154.21

27Khulna530601411.304444180.130.13in terms of production

6Bogra38824361411.243629190.920.93Faridpur, Rajbari, Madaripur, Kustia and Magura.

29Kurigram1803419814410.9857204.294.2118.63

43Natore34573724710.873936210.820.79

28Kishoregonj86509326510.851819222.061.98

11Comilla15011588110.544141230.360.34

17Gaibanda71387365610.332122241.701.56

46Nilphamari1180611986010.231516252.812.55

22Jamalpur1324713459510.161314263.152.86

18Gazipur14361435410.104343270.340.30

58Shariatpur1738417343310.04811284.143.68

7Brahmanbaria37743769110.003735290.900.80

42Narsingdi4826480329.942828301.151.02

14Dinajpur5413533349.922727311.291.13

35Manikgonj3995393649.853434320.950.84

47Noagaon4166405769.723231330.990.86

13Dhaka4147404309.693332340.990.86

44Nawabgonj989369.584949350.020.02

63Tangail162771561359.54912363.873.32

39Mymensingh6474599819.292323371.541.27

60Sirajgonj8218755849.182021381.961.61

41Narayangonj41036789.034545390.100.08

8Chandpur3734336709.003839400.890.72

32Lalmonirhat6149540248.862425411.461.15

61Sunamgonj686048.835150420.020.01

31Lakshmipur12010548.794848430.030.02

50Panchagar6100533858.772526441.451.13

59Sherpur4632400948.662933451.100.85

20Hobigonj20818318.654647460.050.04

45Netrokona3964339848.603537470.940.72

4Barisal1881156088.164042480.450.33

62Sylhet352787.845352490.010.01

38Munsigonj5491427827.812630501.310.91

64Thakurgaon4502336857.483038511.070.72

52Pirojpur412426.035253520.010.01

21Jalakathi944544.855051530.020.01

51Patuakhali8923.795755540.000.00

48Noakhali191763.095454550.000.00

5Bhola17702.815557560.000.00

16Feni12752.085656570.000.00

2Bandarban000.00

3Barguna000.00

9Chittagong000.00

12Cox's Bazar000.00

26Khgrachari000.00

36Maulavibazar000.00

55Rangamati000.00

BANGLADESH4203564708356558100.00100.00

Source: Author's calculation, based on data collected from Bangladesh Bureau of Statistics (BBS)

year-wise

Table 2: Area, Production and Yield in Bangladesh: 1981/82 to 2006/07

YearProduction (lakh bales)Area (lakh ha)Yield (bales/ha)

1981-8246.465.728.1

1982-8348.815.778.5

1983-8452.166.887.6

1984-8551.116.767.6

1985-8686.610.588.2

1986-8767.537.728.7

1987-88475.129.2

1988-8944.365.448.2

1989-9046.395.428.6

1990-9153.025.839.1

1991-9252.735.889

1992-9349.1959.8

1993-9444.534.789.3

1994-9553.15.69.5

1995-9640.744.588.9

1996-9748.665.079.6

1997 -9858.245.7710.1

1998-9944.754.789.4

1999-0039.214.089.6

2000-0145.264.4810.1

2001-0247.334.5610.4

2002-0344.084.3710.1

2003-0443.764.0810.7

2004-0540.353.910.3

2005-0646.194.0211.5

2006-0748.844.1911.7

2007-0846.224.4010.5

-5.3553849304

% change in 2007/08 compared to 1981/82-0.51-22.9929.55

% change in 2007/08 compared to 1991/92-12.34-25.0916.60

% change in 2007/08 compared to 2001/02-2.34-3.400.90

1980s54.3446.5248.38

1990s54.9716.548.47

200s55.0096.4638.6

year-wise

46.465.728.1

48.815.778.5

52.166.887.6

51.116.767.6

86.610.588.2

67.537.728.7

475.129.2

44.365.448.2

46.395.428.6

53.025.839.1

52.735.889

49.1959.8

44.534.789.3

53.15.69.5

40.744.588.9

48.665.079.6

58.245.7710.1

44.754.789.4

39.214.089.6

45.264.4810.1

47.334.5610.4

44.084.3710.1

43.764.0810.7

40.353.910.3

46.194.0211.5

48.844.1911.7

46.224434.4049210.4938182759

Production (lakh bales)

Area (lakh ha)

Yield (bales/ha)

Area (lakh ha), Production (bales)

Yield (bales/ha)

District to region

Bales

Old districtsAdministrative districtsArea (ha)Yield (bales/ha)Production (bales)

11BarisalBarguna, Barisal , Bhola, Jhalakati and Pirojpur24529.083197389922272

16BograBogra and Joypurhat574710.9062646

1ChittagongChittagonj and Coxe's bazar00.000

21Chittagong H.T.Bandarban, Khagrachhari and Rangamati00.000

2ComillaBrahmanbaria, Chandpur and Comilla83939.4579280

5DhakaDhaka, Gazipur, Manikganj, Munshiganj, Narayanganj and Narsingdi191788.87170117

17DinajpurDinajpur, Panchagarh and Thakurgaon187688.59161277

6FaridpurFaridpur, Rajbari, Gopalganj, Madaripur, and Shariatpur13726110.031376735

7JamalpurJamalpur1192210.08120197

12JessoreJessore, Jhenaidah, Magura and Narail6132811.78722722

13KhulnaKhulna, Bagerhat and Satkhira785411.1087164

8KishoregonjKishoreganj734511.0781312

14KushtiaKustia, Chuadanga and Meherpur4477713.17589805

9MymensinghMymensingh, Netrakona and Sherpur154338.46130605

3NoakhaliNoakhali, Feni, and Lakshmipur1468.661264

18PabnaPabna and Sirajganj260979.56249567

15PatuakhaliPatuakhali2411.50276

19RajshahiRajshahi, Naogaon, Natore and Nawabganj1327410.99145925

20RangpurRangpur, Gaibandha, Kurigram, Lalmonirhat and Nilphamari4561910.84494520

4SylhetSylhet, Habiganj, Maulavi bazar and Sunamganj1928.301593

10TangailTangail146828.53125166

BD44049210.494622443

MT

Old districtsAdministrative districtsAreaYield (mt/ha)Production (mt)

11BarisalBarguna, Barisal , Bhola, Jhalakati and Pirojpur24521.654041

16BograBogra and Joypurhat57471.9811366

1ChittagongChittagonj and Coxe's bazar10.000

21Chittagong H.T.Bandarban, Khagrachhari and Rangamati10.000

2ComillaBrahmanbaria, Chandpur and Comilla83931.7114385

5DhakaDhaka, Gazipur, Manikganj, Munshiganj, Narayanganj and Narsingdi191781.6130866

17DinajpurDinajpur, Panchagarh and Thakurgaon187681.5629262

6FaridpurFaridpur, Rajbari, Gopalganj, Madaripur, and Shariatpur1372611.82249795

7JamalpurJamalpur119221.8321809

12JessoreJessore, Jhenaidah, Magura and Narail613282.14131131

13KhulnaKhulna, Bagerhat and Satkhira78542.0115815

8KishoregonjKishoreganj73452.0114753

14KushtiaKustia, Chuadanga and Meherpur447772.39107014

9MymensinghMymensingh, Netrakona and Sherpur154331.5423697

3NoakhaliNoakhali, Feni, and Lakshmipur1461.57229

18PabnaPabna and Sirajganj260971.7445281

15PatuakhaliPatuakhali242.0950

19RajshahiRajshahi, Naogaon, Natore and Nawabganj132741.9926477

20RangpurRangpur, Gaibandha, Kurigram, Lalmonirhat and Nilphamari456191.9789726

4SylhetSylhet, Habiganj, Maulavi bazar and Sunamganj1921.51289

10TangailTangail146821.5522710

1 metric ton = 181.44 kg

Only value

Old districtsAdministrative districtsAreaYield (mt/ha)Production (mt)

1.00ChittagongChittagonj and Coxe's bazar1.000.000.00

2.00ComillaBrahmanbaria, Chandpur and Comilla8393.001.7114384.56

3.00NoakhaliNoakhali, Feni, and Lakshmipur146.001.57229.34

4.00SylhetSylhet, Habiganj, Maulavi bazar and Sunamganj192.001.51289.03

5.00DhakaDhaka, Gazipur, Manikganj, Munshiganj, Narayanganj and Narsingdi19178.001.6130866.03

6.00FaridpurFaridpur, Rajbari, Gopalganj, Madaripur, and Shariatpur137261.001.82249794.80

7.00JamalpurJamalpur11922.001.8321808.54

8.00KishoregonjKishoreganj7345.002.0114753.25

9.00MymensinghMymensingh, Netrakona and Sherpur15433.001.5423696.97

10.00TangailTangail14682.001.5522710.12

11.00BarisalBarguna, Barisal , Bhola, Jhalakati and Pirojpur2452.001.654041.03

12.00JessoreJessore, Jhenaidah, Magura and Narail61328.002.14131130.68

13.00KhulnaKhulna, Bagerhat and Satkhira7854.002.0115815.04

14.00KushtiaKustia, Chuadanga and Meherpur44777.002.39107014.22

15.00PatuakhaliPatuakhali24.002.0950.08

16.00BograBogra and Joypurhat5747.001.9811366.49

17.00DinajpurDinajpur, Panchagarh and Thakurgaon18768.001.5629262.10

18.00PabnaPabna and Sirajganj26097.001.7445281.44

19.00RajshahiRajshahi, Naogaon, Natore and Nawabganj13274.001.9926476.63

20.00RangpurRangpur, Gaibandha, Kurigram, Lalmonirhat and Nilphamari45619.001.9789725.71

21.00Chittagong H.T.Bandarban, Khagrachhari and Rangamati1.000.000.00

district wise

Table: Jute Area, Production and Yield of Jute over the year

Area (Hectare), Production (Bales), Yield (Blaes per hectare)

District/Region200300420040052005/062006/072007008Net Cultivaed Area (ha) in 2005% of NCARank of NCA

AreaYieldProductionAreaYieldProductionAreaYieldProductionAreaYieldProductionAreaYieldProduction

Bagerhar1508.1512223510.833794710.9651525511.64296720611.8124381370030.19

Bandarban00.00000.00000.00000.000515280.00

Barguna102.102153.601800.00000.00000913700.0038.24

Barisal21258.361776215756.421011417247.591307815787.641205123419.27216941519531.04

Bhola00.000156.0791284.29120224.149100.0001164330.02

Bogra503511.8559687401511.3145420369311.0740889374711.6443615420511.02463391908061.96

Brahmanbaria35908.533062029905.761721239149.4937140365410.583864837539.93372861149073.18

Chandpur43508.313616838258.673318040809.293790836109.093282635118.6230276719385.02

Chittagong00.00000.00000.00000.0001507860.00

Chuadanga1195512.531498031294013.451739881287114.111816121489614.212116581226215.051845278509117.51

Comilla26608.6623042173510.6418460162710.1116442174811.1519483112910.38117181795100.97

Cox's Bazar00.00000.00000.00000.000623950.00

Dhaka51209.434827138857.6629776419710.924583547359.644563035098.5029825910465.20

Dinajpur57409.2853274539010.9559030463010.0646565483010.304976967809.39636692388912.02

Faridpur3326012.424131043462512.904466183868513.345162134259613.15559983533049.5450843910995138.74

Feni53.2016654.92320366.2522500.00000.000480650.00

Gaibanda987010.5410399880659.5777148677410.0167797638810.7068349825110.28848221269255.03

Gazipur16908.601454113157.29958815119.191389015269.2414100127111.8615072851851.79

Gopalgonj73509.6771079944010.651005521263311.79148905943712.551184661496911.691749639076210.40

Hobigonj6259.2157597655.9545554248.9437901038.57883978.458211388480.07

Jalakati1209.071088856.155231054.88512894.82429874.84421490240.18

Jamalpur1682512.322073281715510.97188212146059.981458041321310.431377831192210.081201971430139.24

Jessore1242014.341781091185514.411707901519213.372030911486813.842057441589613.222101481527449.73

Jhenaidah649011.1872536675510.8773432861712.18104974933012.231141221215911.341379071244907.49

Joypurhat128010.0412853135011.3015255138311.2915620144712.3317839154210.5816307777641.86

Khgrachari00.00000.00000.00000.00000.000635260.00

Khulna35511.06392532512.16395142311.33479146910.93512769811.6481251081590.43

Kishoregonj1228511.28138519147059.641417261176410.48123257684111.0075227734511.07813121589424.30

Kurigram2163010.682309561888510.411965022010010.972205351891911.102099081508210.8716398811452916.52

Kustia1053011.901253491057512.041272921543712.972002671798412.952328662019311.842390219926118.12

Lakshmipur4005.722289905.825241258.981122898.737771468.681264707430.13

Lalmonirhat784010.398146070309.446635362088.135046976738.806749845659.66441057619110.07

Madaripur1885010.812038211496010.751607981719012.972230101990212.032395072609810.552753727148227.84

Magura982011.101090081431511.241609561572411.761849501895711.642206402154510.952358535861232.34

Manikgonj50958.264207951256.1331402432010.0343345373510.113775139299.4236995704555.30

Maulavibazar00.00000.00000.00000.00000.000926540.00

Meherpur1191513.861651981329514.081872451273115.351953671512314.782234751232213.491662575200229.08

Munsigonj44456.973097048106.603173051998.454393755877.564224356887.41421654091313.66

Mymensingh79458.947106073558.676378767388.2555611631311.647347663727.98508562760232.29

Narail447510.944895748308.4540807677312.2683011736912.73937821172811.841388146578411.20

Narayangonj19207.311404213005.4170284388.1835814259.0238333669.883620285661.49

Narsingdi55757.884394653957.7441735487210.315020751929.915144844159.6142440836266.21

Natore67759.5464663283510.8030629284311.0931542312611.3935612440110.13445881338852.33

Nawabgonj1257.879841057.32769997.8577710710.6711428710.21888998410.11

Netrokona65006.974530134907.572640835068.873110046178.333845237688.60323991791322.58

Nilphamari1649510.60174888150609.44142180135799.79132878123839.91122706945711.0010399711145711.11

Noagaon434010.224436141607.763226742559.4440163495310.034969432909.69318702540381.95

Noakhali506.703351006.58658579.2852900.00000.0001413010.00

Pabna1161515.161761371357510.281395471426611.961706201945112.33239844186319.8618370013129814.81

Panchagar47959.574587043108.223544549908.994488164478.675591468638.6559360867587.43

Patuakhali1103.54389903.4831300.00000.0002411.372761496740.00

Pirojpur509.60480456.82307494.67229496.96341246.47157888960.06

Rajbari2074012.542600181676011.791975691869213.122452692484913.153266752276910.262335005770943.06

Rajshahi332510.6435392340512.6543064376214.4354289379014.3154223549612.48685791443922.62

Rangamati1013.0013000.00000.00000.00000655320.00

Rangpur1935511.02213208179809.861772761379611.81162960992311.79116960826411.81976081641706.04

Sathkhira462512.7959163513512.9266353629213.2583343665913.2988528695011.0276601995406.69

Shariatpur108409.0598088142808.161164571747210.551843621456010.40151476201219.171844616581922.12

Sherpur60257.774679245908.523912338408.853397447638.183895952938.9547350967984.92

Sirajgonj127605.7873813105255.685981487719.097976484179.648112074668.82658671581045.32

Sunamgonj9006.9362351207.48897859.68823578.72497618.094911991850.03

Sylhet1659.191516407.03281387.58288347.76264348.172811224490.03

Tangail205309.51195310186708.40156873165189.861628601763210.23180380146828.531251662111248.35

Thakurgaon40655.082064643407.343186242657.863351741167.122929051257.46382481482702.78

Bangladesh40794510.73437557939049510.33403458940199311.49461855341858311.67488407144028610.49462000573212675.72

Four categories of districts: Not grown: 7 districtsLow (up to 20 thousand bales): 18 districts (Bagerhat, Barisal, Bhola, Comilla, Feni, Gazipur, Hobigonj, Jalakathi, Joypurhat, Khulna, Lakshmipur, Narayangonj, Nawabgonj, Noakhali, Patuakhali, Pirojpur, Sunamgonj and Sylhet)Medium (20 to 100 thousand bales): 21 districts (Bogra, Brahmanbaria, Chandpur, Dhaka, Dinajpur, Gaibanda, Kishoregonj, Lalmonirhat, Manikgonj, Munsigonj, Mymensingh, Narsingdi, Natore, Netrokona, Noagaon, Panchagar, Rajshahi, Sathkhira, Sherpur, Sirajgonj and Thakurgaon)High (more than 100 thousand bales): 18 districts (Chuadanga, Faridpur, Gopalgonj, Jamalpur, Jessore, Jhenaidah, Kurigram, Kustia, Madaripur, Magura, Meherpur, Narail, Nilphamari, Pabna, Rajbari, Rangpur, Shariatpur and Tangail)Jute Production: TE2007/08I. INTRODUCTION: Jute Production Situation

Five categories of districts (jute area basis): Not grown: 7 districtsLow (20 thousand ha): 3 districts (Faridpur, Madariput and Rajbari)Jute Area: TE 2007/08I. INTRODUCTION: Jute Production Situation

Four categories of districts: Not grown: 7 districtsLow (1 to 5 bales/ha)): 5 districts (Bagerhat, Barisal, Bhola, Comilla, Feni, Gazipur, (Bhola, Feni, Jalakathi, Noakhali and Patuakhali)Medium (5.01-10.0 bales/ha): 24 districts (Barisal, Brahmanbaria, Chandpur, Dhaka, Dinajpur, Hobigonj, Lakshmipur, Lalmonirhat, Manikgonj, Munsigonj, Mymensingh, Narayangonj, Narsingdi, Nawabgonj, Netrokona, Noagaon, Panchagar, Pirojpur, Sherpur, Sirajgonj, Sunamgonj, Sylhet, Tangail and Thakurgaon)High (10.01 to 15.0 bales/ha): 28 districts (Bagerhat, Bogra, Chuadanga, Comilla, Faridpur, Gaibanda, Gazipur, Gopalgonj, Jamalpur, Jessore, Jhenaidah, Joypurhat, Khulna, Kishoregonj, Kurigram, Kustia, Madaripur, Magura, Meherpur, Narail, Natore, Nilphamari, Pabna, Rajbari, Rajshahi, Rangpur, Sathkhira, Shariatpur)Jute Yield: TE2007/08I. INTRODUCTION: Jute Production Situation

Broad ObjectiveTo know the profitability situation and jute marketing system in Bangladesh.Specific ObjectivesTo know input use level, and cost and returns in jute cultivationTo document raw jute marketing system To identify problems faced by jute farmers in production and marketing of jute To suggest policy some measures to encourage jute production in Bangladesh II. OBJECTIVES OF THE STUDY

This study is based on field survey conducted during Nov07-Jan08 and relates to the jute situation in 2007 360 jute farmers from 12 villages of 12 jute producing districts were interviewed through structured questionnaire. They represent:Intensive Jute cultivation villages: Five villages of Faridpur, Jessore, Magura, Meherpur and Rajbari districts where 91.80% of total cultivated area were under juteSemi-intensive jute villages: Three villages of Munshiganj, Rajshahi and Shariatpur districts where 52.38% of total cultivated area were under jute Not intensive jute villages: Four villages of Satkhira, Manikganj, Dhaka and Tangail districts where 29.10% of total cultivated area were under juteLocation of the Sample VillagesIII. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION

Cropping Patterns of the Sample Villages III. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION

III. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION Among the sample farmers, Jute covered about 90% of the area under fiber crops and Mesta covered about 10% areaShare of Deshi jute was about 10% of total area under fiber crops while Tossa jute was cultivated in 80% of total area under fiber crops Share of Jute and other fiber crops

Chart1

9.73

9.76

80.52

Sheet1

Jute TypeVarieties% distribution of jute area

IntensiveSemi-intensiveNot intensiveAll

jute villagejute villagejute village

MestaMesta-33.241.339.73Mesta9.73

DeshiDeshal-0.4339.059.76Deshi9.76

Tossanot known0.2438.3313.7414.35Tossa80.52

Kustin--2.310.57

Gander2.25--1.06

Kishayan3.35--1.58

Bangabir1.94--0.91

Bangkim11.20.5110.688.05

Krishak1.17--0.55

Mahamaya1.19--0.56

Maharastra12.7113.0720.6314.76

Gangakaberi2.39--1.13

Bengal1.4--0.66

O-9897 (Tossa)0.24--0.11

Indian37.73.536.3720.3

Chaitali8.320.34-4.01

Chaka7.223.6835.18

Nabin8.676.87-6.02

Laksmi--2.910.72

Total100100100100

Chart3

14.35

0.57

1.06

1.58

0.91

8.05

0.55

0.56

14.76

1.13

0.66

0.11

20.3

4.01

5.18

6.02

0.72

Chart4

14.35

0.57

1.06

1.58

0.91

8.05

0.55

0.56

14.76

1.13

0.66

0.11

20.3

4.01

5.18

6.02

0.72

Chart5

80.52

9.73

9.76

Sheet2

Jute TypeVarieties

All

Tossa80.52

Mesta9.73

Deshi9.76

Not Known14.35

Kustin0.57

Gander1.06

Kishayan1.58

Bangabir0.91

Bangkim8.05

Krishak0.55

Mahamaya0.56

Maharastra14.76

Gangakaberi1.13

Bengal0.66

O-9897 (Tossa)0.11

Indian20.3

Chaitali4.01

Chaka5.18

Nabin6.02

Laksmi0.72

Sheet3

Share of Different Tossa VarietiesFramers did not know the name of variety grown in case of 18% of area under Tossa juteIn case of about 25% of tossa area farmers only knew that the variety was Indian but they did not know the name 64% of the area under Tossa jute was under Indian varietiesAmong the known varieties, highest share was for Maharashtra (18.3%) followed by Bangkim (10.0%), Nabin (7.5%), Chaka (6.4%), Chaitali (5.0%), Kishayan (2.0%), Gangakaberi (1.4%), Gander (1.3%), Bangabir (1.1%), Laksmi (0.9%), Bengal (0.8%), Kustin (0.7%), Mahamaya (0.7%), Krishak (0.7%) and O-9897 (Tossa) (0.1%) III. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION

Chart1

9.73

9.76

80.52

Sheet1

Jute TypeVarieties% distribution of jute area

IntensiveSemi-intensiveNot intensiveAll

jute villagejute villagejute village

MestaMesta-33.241.339.73Mesta9.73

DeshiDeshal-0.4339.059.76Deshi9.76

Tossanot known0.2438.3313.7414.35Tossa80.52

Kustin--2.310.57

Gander2.25--1.06

Kishayan3.35--1.58

Bangabir1.94--0.91

Bangkim11.20.5110.688.05

Krishak1.17--0.55

Mahamaya1.19--0.56

Maharastra12.7113.0720.6314.76

Gangakaberi2.39--1.13

Bengal1.4--0.66

O-9897 (Tossa)0.24--0.11

Indian37.73.536.3720.3

Chaitali8.320.34-4.01

Chaka7.223.6835.18

Nabin8.676.87-6.02

Laksmi--2.910.72

Total100100100100

Chart3

14.35

0.57

1.06

1.58

0.91

8.05

0.55

0.56

14.76

1.13

0.66

0.11

20.3

4.01

5.18

6.02

0.72

Chart4

14.35

0.57

1.06

1.58

0.91

8.05

0.55

0.56

14.76

1.13

0.66

0.11

20.3

4.01

5.18

6.02

0.72

Sheet2

Jute TypeVarieties

All

Tossa80.52

Mesta9.73

Deshi9.76

Not Known14.35

Kustin0.57

Gander1.06

Kishayan1.58

Bangabir0.91

Bangkim8.05

Krishak0.55

Mahamaya0.56

Maharastra14.76

Gangakaberi1.13

Bengal0.66

O-9897 (Tossa)0.11

Indian20.3

Chaitali4.01

Chaka5.18

Nabin6.02

Laksmi0.72

Sheet3

Sources of Jute seed Local market is the main source of jute seed. About 92 percent of the seed of Deshi jute and 98 percent seed of Tossa jute are bought by the farmers from the market. Other sources of jute seed include neighbouring farmers and BADCIII. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION

Per Hectare Input Use Level of Jute Production in 2007Labour cost was the main cost component of the jute cultivation, which constituted more than 50 per cent of total cost. Among the other cost components, land rent (more than 20 per cent), power tiller cost, fertilizer cost (about 6 per cent) are significant in both the deshi and tossa jute. III. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION

Per Hectare Cost of jute production in 2007 III. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION

Profitability in jute production 2007 Per hectare Yield of Jute: Deshi: 1,960 kg and and Tossa:2,340 kg Per hectare Gross Return from Deshi: Tk 37,171 and Tossa: Tk 43,431 Per hectare Net Return from Deshi: Tk 6,424 (net loss) and Tossa jute Tk. 723 (Net Profit)III. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION

Jute Yield: According to Village TypeIII. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION Highest jute yield (2.84 t/ha) was in Meherpur and lowest jute yield (1.44t/ha) was in Manikganj

Chart2

12423190258

5964-495353

10707217260

Return to land

Net Return

Yield

Return (Tk/ha)

Yield (Maund/ha)

Sheet1

InputNot-intensive villageSemi-intensive villageIntensive village

Return to land12423596410707

Net Return1902-49532172

Yield585360

Sheet2

IntensiveSemi-intensiveNot-intensive

UnitRajbariJessoreFaridpurMaguraMeherpurShariatpurMunshiganjRajshahiTangailSatkhiraManikganjManikganjDhakaDhaka

(M)(D)(T)(D)(T)

LabourMan-days181165207191213213161191208143185185187152

Land preparation483993151314718429

Weeding8265958381658043686173878969

Harvesting, binding and transporting5046575267583369562736353737

Retting, washing and drying4546524756594366694858606037

Animal labourTk-802-393---689530885---482

Power TillerTk16803056310226253172319818203192350937182898412452494987

SeedKg769873210898910109

FertilizerKg2092221491832063257137232310171118164188

UreaKg100946858841797721011321221009786

TSPKg6688408068111-367812234183035

MPKg424041455434-29535615-3667

ManureTk343196-1159843--58419269----

PesticideTk594403410748710834445818360-363--

IrrigationTk3932224029172002306135-24881662358----

YieldMaund5656545871483965636047364242

Harvest PriceTk/maund743538881697528695575591766550771700567590

Net ReturnTk5609-12475441163926481718-8702-27797936-11405889-7549-17424-10276

Chart1

2240

2240

2160

2320

2840

1560

2600

2520

2400

1880

1440

1680

Net Return

Yield (Kg/ha)

Chart3

56

56

54

58

71

39

65

63

60

47

36

42

Yield

Yield (Maund/ha)

Sheet3

565654587139656360473642

IntensiveSemi-intensiveNot-intensive

Rajbari (T)Jessore (T)Faridpur (T)Magura (T)Meherpur (T)Munshiganj (T)Rajshahi (T)Tangail (T)SatkhiraManikganj (D)Manikganj (T)Dhaka (T)

Yield224022402160232028401560260025202400188014401680

Net Return5609-1247544116392648-8702-27797936-11405889-7549-10276

Net Return (Tk/ha) : According to Village TypeIII. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION Positive Net Return was observed in intensive jute villages except in Jessore Negative net return (net loss) was observed in semi-intensive and not-intensive jute villages except in Tangail and Manikganj

Chart2

12423190258

5964-495353

10707217260

Return to land

Net Return

Yield

Return (Tk/ha)

Yield (Maund/ha)

Sheet1

InputNot-intensive villageSemi-intensive villageIntensive village

Return to land12423596410707

Net Return1902-49532172

Yield585360

Sheet2

IntensiveSemi-intensiveNot-intensive

UnitRajbariJessoreFaridpurMaguraMeherpurShariatpurMunshiganjRajshahiTangailSatkhiraManikganjManikganjDhakaDhaka

(M)(D)(T)(D)(T)

LabourMan-days181165207191213213161191208143185185187152

Land preparation483993151314718429

Weeding8265958381658043686173878969

Harvesting, binding and transporting5046575267583369562736353737

Retting, washing and drying4546524756594366694858606037

Animal labourTk-802-393---689530885---482

Power TillerTk16803056310226253172319818203192350937182898412452494987

SeedKg769873210898910109

FertilizerKg2092221491832063257137232310171118164188

UreaKg100946858841797721011321221009786

TSPKg6688408068111-367812234183035

MPKg424041455434-29535615-3667

ManureTk343196-1159843--58419269----

PesticideTk594403410748710834445818360-363--

IrrigationTk3932224029172002306135-24881662358----

YieldMaund5656545871483965636047364242

Harvest PriceTk/maund743538881697528695575591766550771700567590

Net ReturnTk5609-12475441163926481718-8702-27797936-11405889-7549-17424-10276

Chart1

5609

-1247

5441

1639

2648

-8702

-2779

7936

-1140

5889

-7549

-10276

Net Return

Sheet3

IntensiveSemi-intensiveNot-intensive

Rajbari (T)Jessore (T)Faridpur (T)Magura (T)Meherpur (T)Munshiganj (T)Rajshahi (T)Tangail (T)SatkhiraManikganj (D)Manikganj (T)Dhaka (T)

Yield565654587139656360473642

Net Return5609-1247544116392648-8702-27797936-11405889-7549-10276

Relative Profitability of jute production in 2007 Analysis of relative profitability of different crops indicated that highest net return was obtained from cultivation of Potato, followed by Chili, Gralic, Maize, Onion, HYV Boro, and Lentil. Farmers had net loss from Jute (Deshi) Low net profit was obtained from Jute (Tossa) III. INPUT USE LEVEL AND PROFITABILITY IN JUTE CULTIVATION

IV. MARKETING SYSTEM OF RAW JUTEMarketing channel of raw jute

IV. MARKETING SYSTEM OF RAW JUTEBuying sources and selling destination of raw jute

IV. MARKETING SYSTEM OF RAW JUTEMarketing MarginMarketing margin can be defined as:Gross Margin = (purchasing price) (selling price) Net Margin = (gross margin) (marketing cost). Among all actors Mohajans received highest net margin (Tk 56 /maund for excellent quality jute and Tk 35 /maund for good quality of jute) Farias received highest Net Margin (Tk 30 per maund) by selling poor quality jute..

IV. MARKETING SYSTEM OF RAW JUTEPrice differences of raw jute in the study villagesComparison of Jute Prices: 2007 and 2006 Farmers received lower prices in 2007 than that of 2006 Jute prices vary according to quality. Price of excellent quality jute was about two times of the price of poor quality jute Farmers sold 80% of their jute immediately (1-2 weeks) after harvest, and another 17% within 2 months and rest of the jute (3%) were sold within 4 months

V. PROBLEMS IN JUTE PRODUCTION AND MARKETINGProduction Related Problems faced by farmers: 2007

Marketing Related Problems faced by farmers in 2007V. PROBLEMS IN JUTE PRODUCTION AND MARKETING

Solutions suggested by the farmersV. PROBLEMS IN JUTE PRODUCTION AND MARKETING

Minimum support price for raw jute may be declared to reduce price risk and thereby uncertainty in profitability Adequate supply of quality jute seed will increased jute yield and thereby production Retting of jute is a major constraint because of lack of water availability for this purpose. Public canals need to be reclaimed from land grabbers. Availability of adequate amount of fertilizer was a problem. Fertilizer supply need to be ensured.VI. POLICY IMPLICATIONS

Thank You forYour Attention