Pakistan Jute Or P-Ng Kenaf?
pp. 39-40 · Read in the full issue
Competition Now Could Kill New P-NG Industry
CHE infant kenaf industry of Papua-New Guinea is not likely > have it all its own way in provid ig fibre for Australian wool and heat sacks.
Indications are that Pakistan is ell aware of this threat to its icrative jute market and is prepared » fight for the Australian trade, lould really active pressure come om Pakistan at this stage, the -NG kenaf industry could die in fancy—if it is not given some help id protection by the Australian ivernment.
Protected industries are only xasionally* justified, economically : politically, but, taking the long rm view, the kenaf industry merits vourable treatment. Australia’s ealth comes from the export of 00l and wheat; most of P-NG’s om the export of copra. All three dustries need sacks, packs and bags hich, to date have been made from te. Since the war, Australian and NG primary producers have been ore or less held to ransom—jute oducts have been in scarce supply id the prices have been ex aordinarily high.
Pakistan seems now to be emerg g from its jute troubles and will > doubt be willing to engage in a t-throat competition with any oduct that offers competition to te. But what has happened in the ,st five years could happen again id if the new P-NG kenaf industry allowed to languish now, it obably will never revive again.
The jute shortage stemmed from e partition of British India into dia and Pakistan, Previously ikistan grew the jute and India )ve it and made the various pro mts. After partition, trade diffi- Ities arose between the two untries and India stopped buying d manufacturing jute from Pakis i.
Pakistan now, however, has in ched jute mills and expects to stall more. Three jute mills of )00 looms each have been ordered d are under construction. One mill already producing; the second will into production this year and the rd in 1953. When these three 11s are working to capacity, it is ped to install six other mills of 0 looms each. At the same time, souragement is being given to ttage industries—that is, the weav -5 of carpets, mats, etc., by peasants irking at home.
In a recent circular issued in Australia by the High Commissioner of Pakistan it was said that when the manufacturing capacity of Pakis tan is in full operation it will be possible to maintain economical prices in the world market and thus sustain the position of jute against substitutes.
Over 75 per cent, of the world’s best quality jute is grown in East Pakistan and the export of this is
the mainstay of Pakistan’s foreign exchange, Pakistan cannot be ex pected to give this trade away lightly, particularly now that they have gone in so energetically for the manufac turing side of the industry.
It may be that kenaf can be grown in P-NG at a price that compares
favourably with raw jute. However,, that is only part of the story.
It is not clear what is intended for kenaf once grown, but presumably’ it is planned to spin it and manu facture the sacks in Australia —andi if that is so then the industry must; either fail or be heavily subsidised,.
Like the grasshopper of Walt Disney' fame, the post-war Australian work man believes that the world owes: him a living; officially he works aj 40-hours week but the effective work; he puts in is probably somewhere: round 30 hours. This, coupled with) the automatic quarterly basic wage; adjustments, has meant that Aus tralian industry has effectively pricedl itself out of the export market and! is making it increasingly difficult] to produce even for the home: market.
Australian industry would have no< hope of competing with Pakistan ini manufacturing products of industrial! fibre and this must be borne in mindl when thinking of P-NG kenaf. The; only effective way in which kenafi could hope to compete with Pakistani jute would be to install mills and! make the sacks and bags right there in the territory with native labour— if procurable.