ECONOMY – AGRICULTURE

TRADE COMMERCE
INDUSTRY
From ancient days the economy of the
land now known as
Bengal/Bangladesh has been buoyant
and developed
 AGRICULTURE
• From ancient times agriculture
has been the main source of
livelihood of the vast majority
of people of Bengal. Bengal
constitutes a flat, alluvial plain
traversed by three mighty
rivers the Ganges,
Brahmaputra and Meghna with
• plenty of rainfall thus making
agricultural operations
relatively easy . Consequently
population pressure upon
agriculture has been
particularly heavy.
 IMBALANCE IN ECONOMY
• Decline of industry in the 19th century
further put pressure on agriculture. By
1921 four-fifths of the total population
( 77.3 per cent ) became dependent on
agriculture. This vast majority of people
were linked with agriculture merely as
raiyats
 Crop Production
• The most important feature of the agrarian
economy during ancient, medieval and
British periods was that crop production
remained the most dominant sector.
• The three other sectors –livestock,
fisheries and forestry were relatively
unimportant . The pattern remains nearly
the same even to-day.
 Principal Crops
• Grown in three seasons-
autumn ( bhadoi) winter (
aghni ) and spring ( rabi ).
Crops include paddy, jute,
wheat, jower, barley,
sugarcane, tobacco, oil-seeds,
patato,onion,garlic,opium,indig
o, tea, vegetables, pulses,
spices and condiments. Cotton
was also grown. The earliest
reference to paddy is found in
the Mahasthan Brahmi
inscription, 2 or 3rd B.C.
 Fertility of the soil
• Fertility of soil and science of agriculture have
been mentioned by contemporary writers and
foreign travelers.
• Extension of agriculture was due to the growth of
population. During the Mughal period cropped
area doubled in Bengal.
• From ancient days to the emergence of
Bangladesh land revenue and land tax was the
principal source of government income
 Condition of Peasants and attitude
of land controllers
• The peasants lived a humble
life as they were economically
depressed . They did not get
adequate compensation for
their labor. The bulk of the
peasants lived in a single room
and their standard of life was
very ordinary.
• The government did not take
care of the peasants very
much. Rather all the influential
having connection with land
exploited them
 Agriculture To-day
• After the independence of
Bangladesh the
agriculture has vastly
developed. It has been
modernized and new
technology has been
applied .
• The Government has also
taken many important
measures to develop
agriculture
• The agriculturist
themselves have taken
many fruitful steps.
Jute- the most important cash crop
• Jute – one of the most ancient
and valuable crops of Bengal.
The reference to the use of
jute cloth was made in the
Bible and Monusinghita –
Mahavarata .
• Trade in jute and jute- product
has also been in use since
ancient time.
• The jute was cultivated from
time immemorial. In the
ancient time it was a garden
plant and its leaves were used
as a vegetable or for medicinal
purposes.
 Jute Trade
• At one time raw jute and jute products became
important articles of trade and commerce. This
started significantly from the medieval time.
• Since antiquity it has been used as a raw
material for packaging. It was also used in
various parts of the world for making household
and farm elements such as ropes, hand made
clothes , wall hangings etc.
• In Bengal sacks and saris made of jute were
commonly used in the medieval time .
• Exports of sacks started in the 18th century.
 Jute as Industrial Product
• The use of jute as industrial
product began during the
Crimean War ( 1854-56) when
it was used as a substitute of
flax. Its use was popularised
mostly in Western Europe,
particularly at Dundee.
Traditionally jute products are
limited to packaging materials
like twine, Hessian, gunny
bags, carpet backing, wool
pack, tarpaulin, mats, canvas,
wall cover, upholstery, and as
furnishing fabrics of different
types and natures.
 Jute Industry
• Jute and Jute Industry played an important
role in the economic development of
Bangladesh in recent time. At the
beginning of the 20th century, Bengal could
boast of only one manufacturing industry –
Jute. It employed about a half of the total
industrial work force of Bengal. In 1900-
01, the export value of jute manufactures
accounted for nearly a third of the entire
export trade of Bengal.
 Domination by Europeans
• The industry was
dominated at first by
Europeans, and later by
the Marwaris.
• During most of its history,
three quarters of the work
force in jute factories
were non- Bengalis.
• Bengalis generally
occupied the intermediate
position in the industry.
• The raw jute for the
industry mostly came
from East Bengal.
 Historical factors leading to the
development of jute industry
• In 1838, the Dutch government
specified bags made of jute instead of
flax for carrying coffee from the East
Indies
• The Crimean War of 1854-56 stopped
supply of flax from Russia to Western
Europe. Dundee was forced to look for
substitutes and found Bengal jute.

• The American civil war 1861-65

stopped supply of cotton

• Europe turned toward India and jute

was imported from there.

• Jute Mills started all over Europe

 Growth of Jute Mills
• The World War I further
led to the increased
demand of jute sacks and
sand bags to protect
soldiers.
• The first jute mill was
established in Kolkata in
1855. By the end of the
19th century Kolkata
became the biggest jute
mill centre in Asia with
several jute mills
numbering 36 in 1900.
 Impact of jute trade and
manufactures on East Bengal
• East Bengal was the largest jute producing
area – Dhaka, Faridpur, Mymensingh,
Rangpur, Dinajpur, Pabna.
• Cultivators of jute became well off.
• A middle class educated East Bengalis
grew up with jute boom.
• At the Partition time it was found that there
were no jute mills in East Bengal resulting
a decline in jute economy.
 Jute Industry in East Pakistan
The absence of jute mills led the
government to establish them in
East Bengal .
The new jute mills were founded by
non-Bengalis whom the
government favored.
The biggest jute mill in Asia –
Adamjee Jute Mill was founded in
Narayanganj.
There took place a new jute boom –
the benefit of which was mostly
enjoyed by the merchants and
people of West Pakistan.
East Bengal people demanded share
in the wealth leading to the
demand for independent
Bangladesh.