Jute product selling challenges in the international market
Bangladesh is one of the largest jute producers, with most jute exported directly to the Indian market for further processing in the high-end market.
One of our clients has over 100 bighas of land, where he produces a decent amount of jute each year for sale to Indian buyers. They told us the Indian buyer paid them just above the local market price; however, the international market value is much higher. The farmer is illiterate; however, his educated son communicates with us to find a direct buyer.
Our young team conducted market research on the types of jute products available and their end users. Then we uncovered the core issue: this farmer was only harvesting jute, not processing it into products for the final customer. So, our next target was to find a local manufacturer who could make jute products and sell them to the international market.
We found a few jute product manufacturers with very little export experience in the large market. Most of them have the full capacity to make almost any kind of jute product. In fact, one producer shows us that his product is being sold under someone else’s brand name. They designed and made it for the final user.
We conduct final research to identify the actual issue. Our investigative team includes the theory and its research output. Firstly, finding the right buyer is challenging because producers need to sell in bulk. Secondly, the buyer needs to gain confidence and trust in the supplier who can meet their demand. We have given the buyer full confidence, including on product availability, and provided full support to the manufacturer and buyer regarding payment. Now, the buyer can buy the product from us at an excellent price and with full confidence in the quality. Our initial support for farmers is direct and encourages ethical, fair trade. This completes the cycle from farmer to buyer.
Project supervised by Md. Rafiqul Islam
