JUTEMILLUPGRADATIONFOR HIGHERPRODUCTIVITY

AStudyJointlyCarriedOutby CentreforPolicyDialogue(CPD)and DepartmentofMechanicalEngineering,BUET inAssociationwithKatalyst

Presentation of the Centre for Policy Dialogue (CPD) by DrK.G.Moazzem SeniorResearchFellow CentreforPolicyDialogue(CPD)
31December2011

CENTRE FOR POLICY DIALOGUE (CPD) BANGLADESH acivilsocietythink tank

CPDStudyTeam

DrKhondaker Golam Moazzem SeniorResearchFellow,CPD Kishore Kumer Basak ResearchAssociate,CPD Md Tariqur Rahman SeniorResearchAssociate,CPD

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Acknowledgment
Thestudyteamwouldliketoregistertheirdeepappreciationto ProfessorMustafizur Rahman ExecutiveDirector,CPD DrDebapriya Bhattacharya DistinguishedFellow,CPD and Mr GoetzEbbecke GeneralManager,Katalyst fortheirvaluableinputsandsuggestionsforthisstudy.

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Contents
1. Rationaleofthestudy 2. Objectivesandmethodologyofthestudy 3. Marketpotentialsforjutegoodsatlocalandinternationallevels 4. Statusofjutemills:machines,workersandproductionProcesses 5. Productivityandefficiencyofsamplejutemills 6. Possiblegainthroughtechnologyupgradation 7. Recommendations

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

1.RationaleoftheStudy
Jute manufacturing sector has recently started to revitalize Rise in global demand for jute goods Environmentfriendly nature Price hike of petroleum products Recently, government has undertaken a number of policy measures Special mention of jute sector in the Industrial Policy 2010 New Jute Policy 2011(which has been approved last week) Special act Mandatory Use of Jute for Packaging Products Act 2010 Decoding of the genetic sequence of jute fibers Jute manufacturing sector is facing a perennial problem, i.e. jute products are usually less competitive Alternate products: Cheap synthetic packaging products Alternate system: Inefficiency in bulkhandling and lack of diversity Strong policy support is required with a view to take out the sector from low level of competitiveness Major focus should be on improvement of productivity of jute mills.
Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

2.ObjectivesandMethodologyoftheStudy

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

2.ObjectivesandMethodologyoftheStudy
Thestudy(CPDpart)hasfollowingobjectives Examinethemarketpotentialsofjutegoodsatlocalandinternational level; Investigatethecurrentstatusofjutemillsintermsofusemachinesand workers,workingenvironmentandproductionprocess; Analyse theproductivityandefficiencyofjutemillsandestimatingthe possiblegainsthroughimprovementofefficiencyinthesemills; Putforwardnecessarypolicysuggestionswithregardtoimprovement ofproductivity. Thestudyisbasedonthedatacollectedfromtensamplejutemills Bothspinningandcompositecategories MillsareundertheauthorityormembershipofBJMC,BJMAandBJSA. Findingsofthestudyhavelimitationsintermsoftheirrobust interpretations.

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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3.MarketPotentialsforJuteGoods
Productionofjuteproductshasbeenremainedinvariantoverthelastdecades InFY200910totalproductioncrossedthelevelof700thousandm.tons Productcompositionhasexperiencedaconsiderablechangeovertheyears Riseofshareofyarn(from31.3%to58.3%) Bangladeshsjuteindustryisoverwhelminglydependentonexportmarket Morethan85%isexported;crossedUS$1billionmarkonlyinlastfiscal BasicdifferenceinthemarketstructurewithIndia Indiaislargelydependentontheirdomesticmarket SignificantcontributionofIndiasdomesticpolicy
ProductionofJuteProducts:19952011
450 400 350 '000MetricTons 300 250 200 150 100 50 0

BangladeshExportand LocalConsumption
200102 400 350 300 250 200 150 100 50 0 200405 200708 201011

Hessian Carpet

Sacking Others

CBC Yarn(BJSA) '000Metrictons

Export

Local

Export

Local

Export

Local

Hessian

Sacking

Yarn(BJSA)

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Source:BJMC,BJMA,BJSA

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3.MarketPotentialsforJuteGoods
The Jute Substitutability Index value hover around 0.7 mark Indicates that major market share of packaging dominates by jute substitutes, i.e. polypropylene (PP) fabrics by 70% Since 2003 the index value has started to decline slowly indicating Falling demand for PP fabrics; Rising demand for jute products Recent export performance corroborates this change in the index value RevealedComparativeAdvantage (RCA)indices forallmajorBangladeshijuteproductsare substantiallyhigherthan1 Indicatetheirstrongcompetitivenessin theglobalmarket ForacountrylikeIndia,RCAanalysiswould notprovideagoodviewoncompetitiveness. RCAanalysisdoesnottakeintoaccount domesticproduction
Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity JuteSubstitutabilityIndex
0.82 0.8 0.78 0.76 0.74 0.72 0.7 0.68 0.66 0.64 0.62 0.6 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source:AuthorscalculationbasedonUNCOMTRADEsdata

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3.MarketPotentialsforJuteGoods
Bangladeshhasscopetoincreasetheexportbypropermarketingstrategy Bangladeshhasthepriceadvantageforjutemadecarpets PertonjutecarpetcostsUS$6,658forIndiawhereasitstandsatUS$3,594 forBangladesh(Rahman andKhaled,2010) TurkishfirmshavetakeninteresttosetupcarpetfactoryintheEPZ. Largeamountofjuteislikelytobeusedthere.
RCAIndexofSelectedJuteItemsofBangladeshandIndia HScode '530310 '530390 '530710 '530720 '531010 '531090 '560710 '570500 '630510 Description Juteandothertextilebast fibres,raworretted Juteandothertex bast fib,not spun,nes;tow andwasteoffibres Yarnofjuteorofothertextilebast fibres,single Yarnofjuteorofoth textilebast fibres,multiple (folded)orcabled Wovenfabricsofjuteorofothertextilebast fibres,unbleached Wovenfabricsofjuteorofothertextilebast fibres,o/t unbleached Twine,cordage,ropesandcables,ofjuteorothertextilebastfibres Carpetsandothertextilefloorcoverings,nes Sacks&bags,for packg ofgoods,of juteorofothertextilebast fibres Bangladesh 2002 2006 616.9 367.3 1191.6 244.0 534.0 159.4 902.9 0.6 1079.0 945.2 616.0 1710.8 122.9 372.5 588.7 966.2 2.9 402.6 India 2010 2002 2006 574.7 383.4 689.3 539.4 185.8 103.1 58.8 0.1 206.4 1.5 1.1 18.3 32.5 48.6 4.1 10.2 31.6 29.4 0.8 0.3 6.5 29.0 45.8 2.6 19.3 33.5 33.0 2010 19.0 4.0 8.9 23.9 54.7 22.4 3.7 9.1 24.1

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Source:AuthorscalculationbasedonUNCOMTRADEsdata

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3.MarketPotentialsforJuteGoods
On October, 2010, the National Parliament has approved a new act titled Mandatory Use of Jute for Packaging Products Act 2010 In view of reducing the use of artificial packaging materials The most important commercial use as of now is in packaging of different kinds of agricultural products Rice, wheat, pulses, oil seeds, potato and sugar; jute sacks for packaging of cement Packaging of different kinds of processed consumer goods may be the next step to target. A large domestic market could be opened up with the enactment of the act The study has estimated that a total demand of 840 million jute bags in the initial year for packaging of selected agricultural and nonagricultural products. If a jute bag reuses for three times, then average yearly requirement would be 280 million. This would require an additional production of raw jute of about 180, 000 m. ton
Aus Production(000mt) Jutebags(000) Raw jute(000mt) 1709 34180 20.5 Projectionofrequiredjutebagsandrawjute Aman Boro Wheat Pulses Oilseeds Potato 12207 244140 146.5 18341 366820 220.1 969 19380 11.6 221 4420 2.7 377 7540 4.5 8168 163360 98.1 Sugar 62.2 1244 0.7 Cement 2877.2 57544 34.5 Total(000) 42,054 841,084 539

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Source:CPDestimatesbasedonthedataoftheMinistryof Foodandotherorganisations

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Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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4.StatusofJuteMills:Machines,WorkersandProductionProcesses
Technology used in jute manufacturing sector did not change much Most of the machines in jute mills are old and have passed the usual functional period. By proper maintenance and replacement of parts, these machines can perform as close to a new one. Low level of capacity utilisation is a challenge. Particularly in weaving section of composite mills Responsible for low capacity utilisation at backward and forward parts of the production chain.
SectionwisecapacityutilizationofMachines

MillCategory Spinning

Composite

Public

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Softening 1.00 0.75 1.00 0.50 0.67 1.00 0.44 0.75 1.00 0.80

Carding 1.00 0.58 1.00 1.00 1.00 1.00 0.75 0.88 0.94 0.98

Drawing 1.00 0.75 0.97 1.00 0.94 1.00 0.69 0.76 1.00 1.00

Spinning 1.00 0.45 1.00 1.00 1.00 0.94 0.51 0.76 0.99 0.98

Winding 1.00 0.75 0.86 0.91 1.00 1.00 0.69 0.80 0.94 0.88

Beaming 1.00 1.00 0.40 0.38 0.48 0.89

Weaving 0.76 0.92 0.40 0.42 0.53 0.84

Calendaring 1.00 1.00 0.33 0.67 1.00

Source:EstimatesbasedonCPDsurvey,2011

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4.StatusofJuteMills:Machines,WorkersandProductionProcesses
There is no standard practice for the use of workers in different sections of jute mills Standard deviation in the use of workers is estimated to be 22.6 in calendaring sections to as high as 376.3 in weaving sections Manmachine ratio is not homogenous in all sections Widely varies in softening, winding and calendaring sections Manufacturing of jute goods is mostly skilloriented job. There is a scarcity of skilled workers Entrepreneurs should offer competitive wage to retain skill workers Average wage of an skilled jute worker is less than that of an agricultural worker (Tk.153/day visvis Tk.163/day) Female workers in skilloriented and labourious activities is not rare Manufacturers should target appointing more female workers in all sections. PerTonLabour CostinDifferentSections(Tk.)
BJSA BJMA BJMC Softening Carding Drawing Spinning Winding Beaming Weaving Calendaring 200 347 531 798 691 205 416 466 1153 574 323 3387 105 472 695 717 3165 1097 499 8384 378
Source:EstimatesbasedonCPDsurvey,2011

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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4.StatusofJuteMills:Machines,WorkersandProductionProcesses
Production environment in jute mills is found to be in diverse states Lack of proper maintenance of temperature, humidity and widespread dust available in the factory premise 50% of sample factories maintain humidity level lower than as it is required. Particularly in the amount of time required, amount of output transferred and the distance passed for transferring outputs Differences in ergonomic structure is appeared to be a major factor Diverse state also found in maintaining required space, machines and workers at backward and forward linkage activities. Lack of standardised use of machines and workers in different sections among jute mills are another reasons for variation in the level of production

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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4.StatusofJuteMills:Machines,WorkersandProductionProcesses
50 Softeningtrav_quantity1 Softeningtrav_distan1 Spreadingtrav_quantity2 2.5 35 30 2 25 20 1.5 15 10 5 1 0 0.5 0 Spinning 40 35 1 30 0.8 15 0.6 10 0.4 5 0 Spinning Composite(BJMA) Composite(BJMC) 0.2 0 25 20 15 10 5 0 Spinning Composite(BJMA) Composite(BJMC) 0.2 0 10 0 Spinning Composite(BJMA) Composite(BJMC) 0.8 0.6 30 0.4 20 0.5 0 1 50 40 1.5 Composite(BJMA) Composite(BJMC) 1.2 1 Cardingtrav_quantity3

80 70 60 50 40 30 20 10 0
Spinning Composite(BJMA) Composite(BJMC)

3.5 3 2.5 2 1.5 1 0.5 0

45 40 35 30 25 20 15 10 5 0

Cardingtrav_distan3 1.2 1 0.8 0.6 0.4 0.2 0

25 20

Drawingtrav_quantity4

1.2

Spinningtrav_quantity5

70 60

Weavingtrav_quantity8

2.5 2

35 30 25 20

Windingtrav_quantity6

1.2

40 35 30

Spinningtrav_quantity5

1.2 70 60 0.8 50 40 30 0.4 20 0.2 10 0 Spinning Composite(BJMA) Composite(BJMC) 1 0.5 0 Calenderingtrav_quantity9 Calenderingtrav_distan9 3.5 3 2.5 2 1.5

0.8 25 0.6 20 15 10 5

15 0.4 10 5 0 Spinning Composite(BJMA) Composite(BJMC) 0.2

0.6

0 0 Spinning Composite(BJMA) Composite(BJMC) 0

Source:BasedonCPDsurvey,2011 Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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4.StatusofJuteMills:Machines,WorkersandProductionProcesses
75%jutemillshavegodown facilitywhichcouldstackonly1/3rdoftotal yearlyrequirementofrawjute. Mostofthemillsprocureamajorshareofrawjuteduringthepost harvestseasonstakingtheburdenofhigherpriceofrawjute(about30% higherduring2010). Costofrawjuteisthemostimportantcomponentinoverallcoststructure Accountedfor5080percentofthetotalcostofproductioninsample jutemills Riseofrawjutepricein recentyearshave significantlyincreasedits proportionatesharein totalcostofproduction Availabilityofrawjuteata manageablepriceisessentialfor maintainingcostcompetitiveness
90000 80000 70000 60000 50000 40000 30000 20000 10000 0 1 2 Spinning 4 5 Composite (BJMA) c_rawjute

Costofrawjutepercentageofperm.tonproductioncost
90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 10

Composite(BJMC)

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Source:EstimatesbasedonCPDsurvey,2011

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4.StatusofJuteMills:Machines,WorkersandProductionProcesses
Althoughmachineriesareregularlymaintainedaccordingtothemill managements Howevertheiroverallperformancelevelcontradictsit. Workshopsobservedinsamplejutemillsarenotfoundtobeadequatewith facilities Technicians,machines,tools,availabilityofrawmaterialsetc. Expenditureonmaintenanceisusuallyconsideredasanadditionalburdentothe mills. Eventhoughonlyabout45percentoftotalcostisattributedforthat purpose Maintenancecostisabout1015percentindevelopedcountries. Insteadoffollowingthepreventionmethodformaintenance,mostmillspractice breakdownmethod.
Maintenancecost(Tk.perton)

Lackofavailabilityofspare partsisalsoamajorreasonfor lowcapacityutilisation. Localmanufacturingbase ofmachineriesandspare partsisinadequate.

500 400 300 200 100 0

Spinning Composite Public

Source:EstimatesbasedonCPDsurvey,2011

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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5.ProductivityandEfficiencyofSampleJuteMills
There are variations in productivity in different sections of different mills. One possible reason is the machines in all the mills are not run at full capacity. Productivity measurement in terms of manday/ton is lower for mills having a larger number of skilled worked force and use of suitable production processes. Properallocationof labour andmachinescan reducemanday/ton productivity Itisessentialtoretain skilledworkforcefor betterproductivity
Productivity index(man-day/ton)
80 70 60 man-day/ton 50 40 30 20 10 0 Jute Mills Weaved product Spinning product

Source:EstimatesbasedonCPDsurvey,2011

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Source:CPDBUETsurvey,2011

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5.ProductivityandEfficiencyofSampleJuteMills UsingDataEnvelopmentAnalysisProgramme (DEAP) Technicalefficiency(TE),allocative efficiency(AE)andcostefficiency(CE)ofthe samplemillshavebeenestimated Bothspinningandcompositejutemillsshouldimprovetheirallocative andmost importantlycostefficiency.

TE,AEandCEofSampleCompositeMills TE,AEandCEofSampleSpinningMills
Technical Efficiency 1.00 0.41 1.00 0.52 Allocative Efficiency 0.89 0.34 1.00 0.83 Cost Efficiency 0.89 0.14 1.00 0.44 MillCategory Composite Technical Efficiency 1.00 1.00 0.57 1.00 0.99 0.53 Weaving Allocative Efficiency 0.75 1.00 0.75 0.84 0.64 0.71 Calendaring Cost Efficiency 0.75 1.00 0.43 0.84 0.64 0.37

Public

SectionwiseTechnicalEfficiencyofSampleMills
Mill Category Spinning Softening 0.615 0.338 1.000 0.462 0.656 0.615 0.328 0.538 0.462 0.320 Carding 0.646 0.395 1.000 0.485 0.470 0.538 0.323 0.665 0.469 0.195 Drawing 0.752 0.399 1.000 0.508 0.560 0.635 0.451 0.935 0.586 0.259 Spinning 1.000 0.660 0.975 0.429 0.447 0.353 0.417 0.750 0.310 0.179 Winding 0.821 0.051 1.000 0.277 0.537 0.462 0.328 0.538 0.489 0.320 Beaming

Composite

Public

0.889 0.370 0.593 0.972 1.000 0.361

0.754 0.895 0.573 1.000 0.636 0.317

0.457 0.229 1.000 0.321 0.786

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

Source:EstimatesbasedonCPDsurvey,2011

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Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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6.PossibleGainthroughTechnologyUpgradation
By improving machine capacity the possible gain in terms of improvement in productivity are as follows: Softening section: 38 kg per machine per hour to 184 kg; Carding section: 549 kg; Drawing section: 230 kg; Spinning section: 1028 kg; Weaving section: 0.93.0 kg Possible saving of labour cost (Tk. per minute) in different sections are: Softening section: Tk.1.0Tk.2.9 per minute per machine; Drawing section: Tk.0.2Tk.0.7 for carding; Tk.0.2Tk.0.8; Spinning section: Tk.0.2Tk.1.3 ; Winding section: Tk.0.1Tk.2.1; Beaming section: Tk.0.9Tk.3.1; Weaving section: Tk.0.2Tk.0.5 ; and Calendaring section: Tk.0.8Tk.2.8. Proper balance of machines and workforce would result in significant cost cuts In nominal terms, it could be as high as Tk.537,000 in a year for a mill.
Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations
Amediumandlongtermworkplanneedstobedevelopedbasedonthe followingrecommendations. Penetratethemarketpotentialsatdomesticandinternationallevels BangladeshandIndiaasthetwomajorjuteexportingcountriescan undertakejointinitiativetopromotejuteproductsatgloballevel. Thisinitiativeshouldincludecampaigning,policyinfluencing, collaborativeresearchonproductdevelopmentandmarketing. InternationalJuteStudyGroup(IJSG)shouldtakealeadroleinthiscase. MinistryofJuteandTextiles(MoJT)shouldimmediatelyfinalise theaction planfortheimplementationoftheMandatoryUseofJuteforPackaging ProductsAct2010.

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations
AdoptionoftheJutePolicy2011isawelcomeinitiative. Itisimportanttofinalise theactionplanbasedonthePolicy Withappropriatetimeframe,deliverablesandappropriateauthorities forimplementingdifferenttargets TheTextileandJuteMinistrywillmonitoritsimplementationona regularbasis.

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations
Balancing the machineryuse to attain higher level of productivity A review of the existing production process, techniques and operational management of different sections of jute mills is urgently needed. Sectionwise monitoring of capacity utilization is highly important. It is also important to set up a team of experts under the auspices of BJMA BJSA and BJMC In order to provide technical support to the jute mills with regard to machines, working environment, size of workforce, machine replacement and production process etc.

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations
Balancing workeruse, mobilization of new workers and improvement of labour productivity An assessment should be undertaken in different sections based on the standard practices of machineworker ratio for operations. Mill management should provide regular inhouse training and better salary to skilled workers including nonwage benefits. Mill management may consider employing female workers in all sections of jute mills. In this connection, the workplace should be more gendersensitive through appropriate sanitary, medical and housing facilities.

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations
Jutemillsshouldtargetforfurthermechanizationofproduction technologiesandprocesseswheneverpossible Examplesincludeuseofforkliftorjibcraneforstacking Conveyerbeltsinthesofteningsection Rollfeedbreakercardingmachineinthecardingsection Baxterflyerinthespinningframeandimprovedweavinglooms Improvementofknowledgebaseregardingfibre quality Apropertrainingisrequiredforthetechniciansandworkers Mainlyatthestagesofjuteprocurement,batchingandselection activities

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations

JibCrane

Forklift

Baxterflyer

Ringspinning

Flexiblerapierloom

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations
Improvementofmaintenancepractices Jutemillsshouldassesstheirexistingmaintenancepracticesparticularly avoidingofbreakdownbasedmaintenancepractices. Thisrequiresextratrainingtomakethestaffsandtechniciansconvinced tounderstandthechangesrequiredinthemaintenancepractices. Millmanagementshouldbereadytoinvestmoreinmaintenancesuch ashavingafullyequippedandoperationalworkshopwithskilled technicians. RecentMoU signedbetweenGulfra Habib (BJMC)andLagan(India)has createdmuchattention. ItisimportanttoknowthetermsandconditionsoftheMoU particularly withregardtotechnologytransfer,profitsharing,marketingof machineriesandotherprioritiesetc. Thetargetshouldbetosupplyallkindsofmachineriesrequiredforthe jutemill. Improvementofmanagementpracticeswithrecruitmentofskilled professionalsshouldbeapriority.
Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations
Developfactorylevelworkenvironmentandsocialcompliances Millmanagementshouldparticularlyputattentiontomaintainthe properlevelofhumidity,light,air,soundanddust. Necessarytrainingonthestandardpracticeoftheseaspectswillhelpto improvetheproductionenvironment. Incollaborationwithprivatesectororganisations suchasNGOs necessaryfacilitiesshouldbedevelopedfortheworkersincluding dormitories,schools,clinicsandentertainmentfacilities. Targetingdynamicleadershipforthejutesector Jutemanufacturingsectorneedsdynamicentrepreneurswhocantake thesectorforward. Forthisanenergeticanddynamicmanagement,dedicatedmidlevel professionals,particularlyengineersandjuniormanagementtrainees arerequired.

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations
Developinginstitutionalcapacityforbetterhumanresource Upgradation ofatextileinstitutelocatedinJamalpur forjute manufacturingsectorisagoodinitiative. Jutemillassociationsshoulddevelopcollaborativearrangementwiththe institutetodevelophumanresourcesandundertakenecessaryR&D. Buildingastrongbaseforresearchanddevelopment(R&D) Recentinventionofgenomesequencingofjutecouldbeexpedited further. Publicprivatepartnership ofresearch(betweenuniversity/instituteand privatesector)forthedevelopmentofcommercialjutegoodsneedstobe prioritised. R&DundertakenbyBangladeshJuteResearchInstitute(BJRI)shouldbe expandedwithmorefocusondevelopmentofcommercialproducts.

Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity

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7.Recommendations
GoB shouldintroduceaTechnologyUpgradation Fund(TUF),likethatofin India Inordertoprovidefinancialsupporttothejutemanufacturingsectorfor necessarydevelopmentandupgradation ofmachineries,production processandfurthermechanizationetc. GoB aswellasthecommercialbanksshouldtakenecessarymeasuresto providefinancialsupport Intheformoflowinterestcredittothejutemanufacturingsector especiallyforprocurementofnewmachineries, upgradation/replacementofexistingmachineries,developmentof factorypremisesandgodownfacilitiesetc.

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Moazzem &Basak,CPD(2011):JuteMillUpgradation forHigherProductivity