agriculture Article Exploring the Future Potential of Jute in Bangladesh Sanzidur Rahman 1,* ID , Mohammad Mizanul Haque Kazal 2,† ID , Ismat Ara Begum 3,† and Mohammad Jahangir Alam 4,† ID 1 School of Geography, Earth and Environmental Sciences, University of Plymouth, Plymouth PL4 8AA, UK 2 Department of Development and Poverty Studies, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh;
[email protected] 3 Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh;
[email protected] 4 Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh;
[email protected] * Correspondence:
[email protected]; Tel.: +44-1752-585911; Fax: +44-1752-584710 † These authors contributed equally to this work. Received: 17 September 2017; Accepted: 24 November 2017; Published: 25 November 2017 Abstract: The study assesses the future potential of the jute sector in Bangladesh by examining its growth performance, international competitiveness, profitability, and production efficiency using national time-series data of over the period 1973–2013 and farm survey data from 289 farmers from two major jute growing areas of Bangladesh. Results revealed that the jute sector has experienced substantial growth in area, production, productivity, prices, and exports. However, productivity has stagnated during the latter 10-year period (2004–2013), while it grew at a rate of 1.3% per annum (p.a.) during the first 31-year period (1973–2003). Only traditional jute production is globally competitive, although financial profitability of white jute is relatively higher (benefit cost ratio = 1.24 and 1.17, respectively). Land, labor, and irrigation are the main productivity drivers for jute.