With global crude oil prices boiling above 54 dollars a barrel, the prices of synthetics, a by-product of crude oil, are rising leaving scope for jute to improve its position on the international market.

Local raw jute exporters are upbeat about a probable rise in export earning in the years to come despite a huge production loss from floods, as they are getting more orders with higher prices from importers.

According to Bangladesh Jute Association, international buyers are offering $100 more on average for one tonne (5.55 bales) jute. Price of Bangla Tossa A variety is now $420 a tonne, Bangla Tossa B $320 and Bangla Tossa White $400 this year, a jump of almost $100 from last year.

Following the international price trend raw jute price is also on the rise on domestic market, a rare phenomenon in recent days. In retail market, per maund of Faridpuri variety of jute price is now Tk 650 to Tk 700 and Jessori Tk 550, an increase of Tk 100 per maund (37.5 kg).

Mahfuzul Hoque, chairman of Bangladesh Jute Association, said rise in jute price has generated new enthusiasm among farmers, who need over Tk 360 for production of one maund of jute, popularly known as golden fibre.

"The soaring oil price has come as a boon for Bangladesh jute sector. Boiling oil price is making room for jute," said Hoque.

According to Reuters, oil prices simmered near $55 a barrel on Friday on rising fears of a winter fuel supply crunch and robust but slowing economic growth in China, the world's number two user.

"Impact of oil on synthetics apart, a movement to avoid artificial fibres is getting steam globally. Australia recently has banned use of synthetics of some categories and many countries are planning the same," Hoque told The Daily Star.

Bangladesh produces 50 lakh bales (180kg) of jute a year on 11 lakh acres of land. Of which 19 lakh bales are exported, 25 lakh bales are used by local mills and rest consumed by people for domestic needs.

According to Export Promotion Bureau, earning from raw jute export was $90.74 million in 1995-1996 and $116.32 million in 1996-1997 and since then earning has been witnessing a dip. In 2002-2003, the earning was $ 82 million and in 2003-2004 $79.69 million.