Industries in Bangladesh

Bangladesh Small and Cottage Industries Corporation (BSCIC) provides a package of services to private sector entrepreneurs in Bangladesh in the small and cottage industries sector. It was created through an Act of Parliament in 1957 which was later amended in 1992. BSCIC has developed a total of 74 industrial estates throughout the country to foster the growth of SCIs in a balanced manner and also construction works for good number of estates including special type like Tannery, API (Active Pharmaceutical Ingredients) and Garments Park are under execution.

Cottage Industry refers to family based/owned small sized production units with small amount of capital whose production process is based mostly on local raw materials, inherited artistic skills and simple indigenous technology. These units operate in both rural and urban areas. Many of them use hired staff on full or part-time basis. Bangladesh Small and Cottage Industries Corporation (BSCIC), the state-owned organization for promotion and supervision of small and cottage industries in the country, defines cottage industry as small scale industrial unit run by the members of the same family either on full or part-time basis.

The maximum number of workers in a cottage industry unit is 20, if it uses indigenous technology and is not run by power, and not more than 10, if it uses power-run machinery. However, for the purpose of taxation the NATIONAL BOARD OF REVENUE has defined cottage industry as an industrial unit run by a maximum of 50 workers using local skills without adopting power-run mechanical equipment. Traditionally, cottage industries have been rural-based, but in course of time and with technological advancements, they spread to urban areas to avail of transport and marketing facilities and financial support from institutional sources.

The area of cottage industries has now broadened remarkably from simple indigenous technology based and home-made products to sophisticated HANDICRAFTS of wide varieties. History of cottage industries in Bengal: Among the cottage industries of Bengal, COTTON is the most important, and has a history of at least two thousand years. During Roman times, MUSLIN of Eastern Bengal was a passion and a fashion with the richest of Roman ladies. One of the striking characteristics of Bengal's handloom cotton TEXTILE and SILK industry was their exceptional diffusion throughout the country.

In pre-British Bengal, the cotton industry was organized under pure handicraft or the domestic system of production. Small but independent producers carried on the process of production with the assistance of their own families and occasionally with the help of waged laborers. Some craftsmen, ARTISANS, and other small industrial entrepreneurs and workers were dependent on the capital of MAHAJANs. During the Mughal era, cottage industries were allowed to flourish. Only a few weavers who worked in the royal karkhanas (factories) were affected to some extent because of Mughal rules.

With the coming of Europeans, the domestic system of production of cottage industries became much more common. Then European merchants, including the English and Dutch East India Companies, financed artisans, weavers, and other handicraft workers for producing goods for export to foreign destinations. Company officials however, attempted to oppress handloom cotton textile, weaving, and other cottage industries. British rulers imposed series of repressionary regulations by which they controlled price and production of textile and other cottage industry goods.

In addition, the regulatory constraints, physical torture, forfeiting of goods, seizure of property, and prosecution for recovery of advances stifled weavers and made them disinclined to work for the EAST INDIA COMPANY. In fact, many indigenous artisans gave up their professions in protest. Following the Partition of Bengal in 1947, the government of Pakistan took some measures to revive and reinvigorate the declined and damaged cottage industry sector. The government recognized cottage industry as a special sector and established a Directorate of Cottage and Small Industries under the Ministry of Industries.

To provide financial assistance to them, a network of branches of the Small Industries Development Corporation was established. During Pakistan period, capital investment in cottage industries was negligible and was restricted to simple implements. Both rural and urban cottage industries needed short-term credit. Cottage industries in rural areas were closely allied to agriculture, and included activities like poultry, APICULTURE, sericulture, PADDY husking and manufacture of molasses. An estimated 3 million agriculturists were engaged in cottage industries. Of them approximately 65% were in East Pakistan.

The main cottage industries in urban areas included handicrafts like iron work, CANE-work, gold and silver ORNAMENTS and EMBROIDERY, hides tanning and leather goods, musical instruments, sports goods and brass and glass bangles. Persons employed in these industries were agriculturists as well as about 1. 60 million artisans. Handloom, the most significant cottage industry of Pakistan, employed about 400,000 persons. Until 1954, the cottage industry met the bulk of the country's requirements of cloth. In the Second Five-Year Plan, the central government allocated Rs 284 million for promotion of cottage and small-scale industries.

The East Pakistan Small and Cottage Industries Corporation (EPSIC) was established in 1957 by an Act of Parliament to establish and develop small and cottage industries in this region. Like most other sectors, the industrial sector, including the cottage industries of Bangladesh, were severely affected by the destructive activities of Pakistan army during the WAR OF LIBERATION. The government of Bangladesh took initiatives to rehabilitate and reorganize the cottage industries as an important vehicle for enhancing employment opportunities.

EPSIC was restructured and renamed Bangladesh Small and Cottage Industries Corporation (BSCIC) and given the responsibility for promotion and development of small, cottage and rural industries in the country. The corporation is also engaged in providing finance and other support services to the cottage and small industries. 1981-2000: BSCIC conducted a survey in 1981, according to which there were 322,000 cottage industry units in Bangladesh engaged in producing 160 different types of goods categorized into eight groups in accordance with the international standard of classification of industries: First category:

among the cottage industries of the first category (food, drinks and TOBACCO processing) were MILK-products, ice cream, FRUIT processing and canning, FISH processing and canning, PULSE grinding mills, flour mills, RICE mills, paddy husking machines, bakery, confectionery, molasses-making, poultry feeds, ice making, salt and salt crushing, sweet-making, apiculture and HONEY processing and drinks, cigar and BIDI factories. Second category:

Cottage industries of the second group (textile and leather) included cotton and cotton goods, silk and silk goods, tap braid and ribbon, handlooms, embroidery, hosiery, socks making, woolen goods, JUTE stakes, rope making, netting, blanket making, cap making, tailoring shops, graphics, screen printing, JAMDANI, jute bellying, hide and skin processing, shoe making and repairing, bag making, batik and screen printing, hand made carpets, weaving, khadi fabrics, puppet making and cloth-made toys, leather tanning and bed sheet and other cloth dying and painting.

Third category: . Some industries included in the third category (TIMBER and wooden FURNITURE) were wooden toy making, BOAT making, hat making, cane and BAMBOO goods, stick making, musical instruments, agricultural weapons such as wooden PLOUGHs, sports goods, picture framing, grafting, house decorating materials, timber sawing, mat preparing, etc.

Fourth category: Multifarious cottage industries under the next group were PAPER and PACKAGING, processing of wastage papers and making goods there from, playing cards, paper-made stationery, book binding, paper-made flowers, printing block making, paper-made bags and pots and other paper-based cottage industries and handicrafts. Fifth category:

A few of the fifth (chemical, petroleum and rubber) group of cottage industries were allopathic medicine, Unani and AYURVEDIC MEDICINEs, printing and dying industries, tar/pitch, PESTICIDEs, colour and burnish, auger and candles, cosmetics and scents, hair oil, soap factories, boot polishing, glue making, tire and tube repairing, rubber-made shoes and other goods, comb and button making, porcelain, polythin bags and other plastic goods, glass-mirrors, optical glasses, brick, tally and sanitary wares, cement-based goods, chalk making, state and pencils, pencil bags, shopping bags, plastic toys and flowers, plastic containers, rubber mixed foam, choir and earth/clay industry.

Sixth category: Worth mentioning among the next group of cottage industry products (non-metallic items) are sand collection, LIMESTONE and snail-based lime, chalk and colour chalk, buttons and bracelets. Seventh category:

The metallic products and other machinery and equipment produced in cottage industries of Bangladesh include steel plate and printing, steel furniture, electroplating, cooking burners, lighting equipment, steel/iron-made nets, strainer making, spades, knives of different types and other agricultural and domestically usable weapons, lantern, hair clips, bolt and nuts, sanitary wares, lock and keys, light engineering, electrical equipment, bicycles and other two and three wheeler vehicles, blacksmiths, goldsmiths, repairing of radio, watch, television and other mechanical items, electric and electronic equipment, carpenters, painters, etc. Eighth category:

The last group includes various types of handicraft products and other cottage industries. The Agricultural Census of 1983-84 defined the cottage industry as household level manufacturing units that produce goods manually and with elementary tools within households and use the sale proceeds for subsistence of household members. The census recorded 932,000 such households, 20. 7% of which were involved in weaving, 15. 4% in bamboo and cane products, 8. 1% carpentry, 6. 1% jute and thread products, 3. 4% in pottery, 3. 3% in oil extraction, 3. 2% in ironwork, 0. 8% in bronze and silver work, and the rest 39% in different other works. Involving work Percentage of people weaving20. 7

Bamboo and cane products15. 4 Carpentry8. 1 Jute and thread products6. 1 pottery3. 4 oil extraction3. 3 ironwork3. 2 bronze and silver work0. 8 Different work39 Important cottage industry units: cottage industries during 1999-2000 made by both entrepreneurs and BSCIC stood at Tk 500. 80 million During 1999-2000, a total of 4,085 industrial units were registered with BSCIC. Of them, 3,240 were cottage industries The most important among the small and cottage industry units were those in weaving and hosiery. Major places of concentration of weaving and hosiery were identified as I BABURHAT, BAJITPUR, BHAIRAB, TANGAIL, SHAHJADPUR, MURADNAGAR and KUMARKHALI.

CHITTAGONG HILL TRACT districts are also famous for indigenous weaving products. Bangladesh made some progress in manufacturing silk at the cottage industry level by using silkworm in MULBERRY trees cultivated widely in areas like RAJSHAHI, BHOLAHAT, NAWABGANJ, Khadimnagar, Bhatiari and Chandraghona. Other cottage industries developed in Bangladesh in the 1980s include bronze and brass utensils of Chapainawabganj and Islampur, LAC DYE of Nawabganj, catechu of Rajshahi, cane and bamboo mats and furniture of SYLHET, pottery and bamboo products of COMILLA, Cheroot of COX'S BAZAAR, choir products of BARISAL, combs of JESSORE, and checkered carpets of Nisbetganj Impact of cottage industry:

Cottage industries provide economic opportunities for the poor or the middle-income section of people through employment and income generation schemes all over the world, and especially in low income and technologically underdeveloped countries such as Bangladesh. Table Industry of Bangladesh in 1991 Number Value (Million Tk) Establishments (by admin. divisions) All26446Fixed Assets102415 Dhaka11790Products and by-products total213073 Chittagong3791Finished products210301 Rajshahi7765by-products2628 Khulna3100industrial wastes144 Workers Both sexes1156204Taxes paid11298 Male979328 Female176876Gross output222868 All employees Both sexes1327287Gross value added73249 Male1128905Value added at factor cost51090 Female198382 The government continu