The state owned Bangladesh Jute Mills Corporation (BJMC) is going to make fabrics, particularly denim. According to sources, the corporation has developed a method of producing denim fabrics by mixing jute and cotton to meet the rising demand, both at the domestic and global markets.
The government has given primary approval to the project. The project is now awaiting the final approval from the Executive Committee of the National Economic Council. A high official of the company observed that the project would be profitable.
Over the years, hessian fabrics and jute sacks have been dominating BJMC's annual production basket. The latest step was taken to diversify the production basket and expand market opportunities for the natural fiber, officials said. BJMC, produced jute goods of 9.63 lakh tons in fiscal 2015-16.
It has taken an initiative to set up new production units to make more diversified products including viscose. Home textiles will also be produced at the composite jute garment factory, which will be set up on seven acres of land in near the capital.
The global denim market is expected to hit $64 billion by 2020, according to Bangladesh Denim Expo that takes place twice a year. In 2014, the size of the global denim market was $56.20 billion. Currently, Bangladesh has 30 denim mills whose collective production capacity is 435 million yards a year against the demand for 800 million yards a year.
The price of a kilogram of jute is now Tk 50, but value addition will bring higher prices for the state mills. Between fiscal years 2007-08 and 2015-16, BJMC has incurred losses in all years except in fiscal 2010-11, when it posted Tk 17.5 crore profit.
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