Value chain analysis of jute fiber in Bangladesh

Abstract

Jute often referred to as Bangladesh's “golden fiber” offers numerous environmental advantages along with significant industrial and economic importance. It is a crucial source of export earnings for Bangladesh. Beyond its use in house decoration materials, jute is employed in the production of twine, mats, carpets, sacks, and hessian clothing, among other products. This study aimed to assess the value chain of jute fiber in Bangladesh. Primary data were collected from 90 jute farmers and 233 chain participants across different stages of the value chain selected through simple random and purposive sampling, respectively, in 2019. Mapping strategies and marketing margins were employed to analyse the value addition of each actor. The benefit-cost ratio of 1.44 demonstrates the profitability of jute cultivation. The study identified that the highest share of the total value addition by farmers was 52.80% through the ‘Farmer-Faria-Kutcha Baler-Mill’ channel in Faridpur district, 59.66% through the ‘Farmer-Faria-Aratdar-Mill’ channel in Rangpur district, 60.52% through the ‘Farmer-Faria-Aratdar-Mill’ channel in Dinajpur district, and 58.87% through the ‘Farmer-Faria-Aratdar-Mill’ channel in Kishoreganj district. Per quintal, gross and net marketing margins for farmers were Taka 569 and Taka 537, respectively. Pucca balers cum exporters accounted for the highest proportion of gross marketing margin (41.30%) and net marketing margin (44.34%), while Farias contributed the lowest share (6.77% and 3.63%). Finally, based on the research findings, several policy measures are recommended to revitalize this potential sector in Bangladesh.

Keywords

• Value chain
• Jute
• Marketing margin
• Marketing channel
• Value addition
• SWOT analysis