Visitors crowd a stall at German Trade Show 2008 that came to a close yesterday. Photo: STAR

Global retailer giant Tesco has started outsourcing jute-made shopping bags from Bangladesh as part of its move to promote environment-friendly products worldwide, said an official of a local company yesterday.

“It's good that global retailers like Tesco are using jute-made shopping bags to meet the consumer demand for environment-friendly and socially responsible products,” said Mohammed Mahbubur Rahman Patwari, director of Sonali Aansh Group that participated in the German Trade Show 2008, which ended yesterday.

Sonali Aansh Group is also engaged in exporting high-fashion jute-made ladies bags, jute fabrics and espadrille, a casual flat or high-heel fashion sandal made of jute or cotton.

Patwari said Sonali Aansh has got orders from Tesco after it met compliance requirements.

“It's an achievement for us. The retailer is now using our jute bags at its stores in Poland, Japan and Korea,” he said, adding that the company has exported over 7 lakh pieces of jute bags to a number of buyers including Tesco.

Patwari found prospects of jute products such as shopping bags, and said global retailers are pushing consumers into using these bags in many countries as some governments discourage use of plastic bags to protect environment.

However exports of jute goods witnessed a downturn trend since fiscal year 2005-06. In fiscal 2007-08, exports of such items dropped marginally by 0.77 percent to $318.3 million from $320.8 million a year ago.

In July-August period of the current fiscal year, the exports rebounded and registered a 2. 87 percent growth to reach $54.50 million from $52.98 million during the same months a year ago.

“It's a new concept. But I think the demand for environment-friendly products will rise gradually,” said Patwari of Sonali Aansh, which attracted hundreds of visitors to the first ever German trade show in Dhaka.

The three-day fair, which brought nearly 70 companies from various sectors including pharmaceuticals, chemical, automobiles, machinery, leather goods and footwear, shipbuilding, and garments, also raised hopes among the organisers about better trade relations with Germany.

Bangladesh German Chamber of Commerce and Industry (BGCCI), with the support of Federal Republic of Germany and gtz organised the show.

President of BGCCI Saiful Islam said they have received some trade-related inquiries during the show. “We hope to get more queries in the coming days,” he said, expecting that such event would help enhance trade relation between the two nations.