‘Türkiye, Bangladesh determined to boost trade, cultural ties at optimum level’

[UKBengali]

Excess raw jute can be exported but BD should try to set up industries to produce finished goods from jute and export the finished goods.

BD is trying to do as much as it can but it cannot do everything at the same time.

The focus will be heavily on SEZs(Special Economic Zones) this decade as the plan is to get 100 set up by 2030 and employ 10 million people so that no BD'shi needs to work in inhumane conditions under the Gulfies.

I am very satisfied with the government's medium to long term plan to develop the economy.

 

[Chute]

Excess raw jute can be exported but BD should try to set up industries to produce finished goods from jute and export the finished goods.

The issue is you also have to look at Turkiye own access to EU market and why it has its own textile industry.

Looking up what BD exports to them, its not "raw jute" but mostly jute yarn, so some processing is done in BD.

I would assume Turkiye takes this and has its supply chain industries with EU (and its own used) regarding jute products and jute-mixed products.

Finished goods in every sector that BD has simply might not be optimal basically....as you have to allocate investment optimally to where you make the most profit (value addition) with current labour you have.

i.e is a taka better spent on doing something further with jute (compared to handing that over to turkiye with its own EU inertia)...as opposed to spending that taka on say more RMG investment or some other move up the value addition chain elsewhere....knowing the labour availability and pricing trends and so on for BD current industrialisation and growth snapshot.

Corporates analyse this stuff a lot and make decisions based on it. Of course corporate environment in BD must also keep improving and maturing.

 

[Bengal71]

Finished goods in every sector that BD has simply might not be optimal basically....as you have to allocate investment optimally to where you make the most profit (value addition) with current labour you have.

Jute is not "every sector". We are one of the largest producers of it and it is known as the golden fiber for a reason. Converting to yarn for some value addition is good but we don't need to stop at good, we should endeavor for the better. Producing finished goods will employ a lot of people and create value addition.

Investment in jute or any other sector should be done by the private sector, so I don't see what you are alluding to when you say "allocate investment optimally". We are not talking about the government allocating/investing funds in jute industries or are we?

 

[jamahir]

This is the name Turkish republic is preferring now over the older transliteration (Turkey).

Nothing to do with Ertugrul....maybe more to do with Erdogan hah.

You are correct, but the change in name was done by Erdogan who also promoted Ertugrul as a cultural "correction and information". Erdo wants to become Sultan Erdogan and regain the Usmaniya empire and he the khalifa. At least that was the plan a decade ago and there was furious activity towards this but he has been humbled.

And "Turkiye" is on the same line as the Hindutvadis who have discovered the "glories" of Ancient Bharat including satellite-enabled internet hundreds of thousands of years ago. And years ago China which is a Capitalist society now after forgetting Mao's revolution, it then meant that China didn't speak about abolishing money as demanded in Communism but instead gave a Chinese pictorial symbol to its currency ironically called Renminbi - "People's currency" - and stupid nationalist Indians who have a rush of righteous anger if China gets ahead in what stupid nationalist Indians can achieve ( stupid nationalist Indians can't set up a Mars research station, but neither can the Chinese government ) what Indian government did immediately was give the Indian currency, the rupee, a pictorial symbol as well - the Hindi letter for "R" or "Ra".

 

[UKBengali]

Jute is not "every sector". We are one of the largest producers of it and it is known as the golden fiber for a reason. Converting to yarn for some value addition is good but we don't need to stop at good, we should endeavor for the better. Producing finished goods will employ a lot of people and create value addition.

Investment in jute or any other sector should be done by the private sector, so I don't see what you are alluding to when you say "allocate investment optimally". We are not talking about the government allocating/investing funds in jute industries or are we?

You have fair point but the problem is there is only a certain amount of investment that is available in the country as a function of it's total GDP and wealth.

Most companies need to borrow in order to invest and especially when you are doing something new. There is only a limited amount of money for banks to lend and they are more likley to give the money to established companies who are less risky.

 

[Abu Shaleh Rumi]

What is the issue. Are you suggesting we should not export Jute?

Yes. We must not export raw jute.

BD is the second largest producer of Jute in the world

We must take advantage of this.

and is the largest exporter.

We are largest raw jute exporter which we must not be proud of.

It is called a cash crop for a reason. If your position is BD should exploit our natural advantage and derive greater value addition by producing finished goods using jute for export then you have a point.

That is my point.

This is happening and in sometimes the industry have also asked govt to stop exports as local demand exceeds supply.

I don't see it happening. Local conglomerates are more interested in established sectors. Unfortunately...

Overall Jute has a lot of potential that remains unrealised to date.

People with working brain understand this.

 

[Abu Shaleh Rumi]

BD labour gets more value addition from RMG compared to allocating same labour to jute.

Because our government and crony capitalists never bothered to establish industry to make finished products from jute! They're much more focused on money laundering.

It just makes sense to export the jute while BD improves its labour force dynamics further.

Don't know what to say...

 

[Bilal9]

The issue is you also have to look at Turkiye own access to EU market and why it has its own textile industry.

Looking up what BD exports to them, its not "raw jute" but mostly jute yarn, so some processing is done in BD.

I would assume Turkiye takes this and has its supply chain industries with EU (and its own used) regarding jute products and jute-mixed products.

Finished goods in every sector that BD has simply might not be optimal basically....as you have to allocate investment optimally to where you make the most profit (value addition) with current labour you have.

i.e is a taka better spent on doing something further with jute (compared to handing that over to turkiye with its own EU inertia)...as opposed to spending that taka on say more RMG investment or some other move up the value addition chain elsewhere....knowing the labour availability and pricing trends and so on for BD current industrialisation and growth snapshot.

Corporates analyse this stuff a lot and make decisions based on it. Of course corporate environment in BD must also keep improving and maturing.

আপনার বাড়ি কোথায় ভাই ? কোন জেলায় ?

 

[Chute]

Jute is not "every sector". We are one of the largest producers of it and it is known as the golden fiber for a reason. Converting to yarn for some value addition is good but we don't need to stop at good, we should endeavor for the better. Producing finished goods will employ a lot of people and create value addition.

Investment in jute or any other sector should be done by the private sector, so I don't see what you are alluding to when you say "allocate investment optimally". We are not talking about the government allocating/investing funds in jute industries or are we?

I suggest you look at the total jute demand in the world compared to the total RMG demand for starters.

It is fairly clear where BD has to keep investing and leveraging its current experience and supply chain network....to earn the optimal profit so it can hedge laterally into new growth sectors.

If there is less money to be made in "finishing jute" especially if Turkiye already set up its own network (w.r.t EU) for it compared to the more money to be made (with same amount of investment, labour et al) by BD in other things (RMG expansion, light manufacture, electronics, services etc).... explain why a corporate looking at all of that would invest in the former over the latter?

Obviously I am talking about the private sector, its why I mentioned corporate analysis (of these dynamics) at the end of my previous post.

You are correct, but the change in name was done by Erdogan who also promoted Ertugrul as a cultural "correction and information". Erdo wants to become Sultan Erdogan and regain the Usmaniya empire and he the khalifa. At least that was the plan a decade ago and there was furious activity towards this but he has been humbled.

And "Turkiye" is on the same line as the Hindutvadis who have discovered the "glories" of Ancient Bharat including satellite-enabled internet hundreds of thousands of years ago. And years ago China which is a Capitalist society now after forgetting Mao's revolution, it then meant that China didn't speak about abolishing money as demanded in Communism but instead gave a Chinese pictorial symbol to its currency ironically called Renminbi - "People's currency" - and stupid nationalist Indians who have a rush of righteous anger if China gets ahead in what stupid nationalist Indians can achieve ( stupid nationalist Indians can't set up a Mars research station, but neither can the Chinese government ) what Indian government did immediately was give the Indian currency, the rupee, a pictorial symbol as well - the Hindi letter for "R" or "Ra".

There is some limit to my posting frequency (for every 24 hours) as new member of forum it seems.

I'll have to pick up conversation over time with you gents.

 

[Bengal71]

I suggest you look at the total jute demand in the world compared to the total RMG demand for starters.

It is fairly clear where BD has to keep investing and leveraging its current experience and supply chain network....to earn the optimal profit so it can hedge laterally into new growth sectors.

If there is less money to be made in "finishing jute" especially if Turkiye already set up its own network (w.r.t EU) for it compared to the more money to be made (with same amount of investment, labour et al) by BD in other things (RMG expansion, light manufacture, electronics, services etc).... explain why a corporate looking at all of that would invest in the former over the latter?

Obviously I am talking about the private sector, its why I mentioned corporate analysis (of these dynamics) at the end of my previous post.

If the Turks find it profitable, surely BD should find it more profitable since we have the raw materials and far lower labor cost.

 

[Abu Shaleh Rumi]

If the Turks find it profitable, surely BD should find it more profitable since we have the raw materials and far lower labor cost.

We can make cellulose based fiber from Jute and use them in our already established garments industry.

If we can hike jute demand our poor farmers can make money even in flooding season...

 

[Chute]

আপনার বাড়ি কোথায় ভাই ? কোন জেলায় ?

চট্টগ্রাম জেলা

If the Turks find it profitable, surely BD should find it more profitable since we have the raw materials and far lower labor cost.

I understand what you and others are saying. BD companies should look into it.

The largest demand from Turkiye for jute yarn comes from their carpet industry for example.

Carpet exports in 2020 worldwide were 15 billion USD and it not really only labour-price driven as you can see there are lot of developed (high labour price) countries that are established there too:

The Observatory of Economic Complexity

The world's leading data visualization tool for international trade data.

oec.world

That too only some portion of these would be using jute.

So all I am suggesting is that given RMG is more than 10x larger than this sector (the Turks and others have invested in over longer time than us and have broader comparative advantage) worldwide, we might want to pick more low hanging fruit first and sequentially.

I feel that is what BD corporates have analysed where it is currently optimal (in larger world market opportunity) to expand into more value addition.

If there is room for improvement and they got this analysis wrong somehow, then folks in the know should make the argument in relevant chambers hopefully.

 

[Bengal71]

চট্টগ্রাম জেলা



I understand what you and others are saying. BD companies should look into it.

The largest demand from Turkiye for jute yarn comes from their carpet industry for example.

Carpet exports in 2020 worldwide were 15 billion USD and it not really only labour-price driven as you can see there are lot of developed (high labour price) countries that are established there too:

The Observatory of Economic Complexity

The world's leading data visualization tool for international trade data.

oec.world

That too only some portion of these would be using jute.

So all I am suggesting is that given RMG is more than 10x larger than this sector (the Turks and others have invested in over longer time than us and have broader comparative advantage) worldwide, we might want to pick more low hanging fruit first and sequentially.

I feel that is what BD corporates have analysed where it is currently optimal (in larger world market opportunity) to expand into more value addition.

If there is room for improvement and they got this analysis wrong somehow, then folks in the know should make the argument in relevant chambers hopefully.

RMG is big because huge investment was made in it for many decades. Jute died in the 70s because of the artificial fibres but it is making a come back in a huge way because of increasing awareness in the world about the negative effects of plastic products, pollution, whole world going towards green etc. Jute and other natural fibre have immense potential and because we are one of the largest producers we stand to benefit immensely from it. It's a disservice to the country if the government doesn't make policies conducive to the development of jute industries at this time, this is the time. The golden era of jute has returned and we are missing the boat. And I don't have very high opinions of our corporates and business people. You think they objectively look at potentials as good businessmen and make investments ? I don't think so, they keep investing in easy things that are already well established. Our people are not entreprenial like the western and Chinese people.