Bangladesh expects to restore GSP status during the upcoming Ticfa meeting in Washington, says Commerce Minister Tofail Ahmed. Photo: Star/File

The government will export raw jute to Nepal as jute millers of the Himalayan nation have urged Bangladesh to help save their local industry, Commerce Minister Tofail Ahmed said yesterday.

There has been a ban on export of raw jute from Bangladesh since November 2 last year.

The exports will be on a case-to-case basis and as per the demand from the businesses of Nepal, Ahmed said.

The minister spoke at a meeting with a Nepalese business delegation at his secretariat in Dhaka.

Twelve big jute mills that employed 20,000 workers in Nepal are about to suspend their production due to a lack of raw jute supplies from Bangladesh and India, said Mukesh Upadhayaya, first vice-president of the Chamber of Industries, Morang in Nepal.

The jute industry in Nepal is largely dependent on raw jute from Bangladesh and India, Upadhayaya said.

Bangladesh used to export jute to different countries, including Nepal, China and the Middle East.

The government had to impose the ban as demand for raw jute increased in the country after the implementation of the Mandatory Jute Packaging Act 2010.

The government has made it mandatory for traders to use jute bags and sacks to pack paddy, rice, pulses, wheat, fertiliser and sugar.

The first-time rule violators will face a fine of Tk 50,000 or a year in prison; second-time offenders would be subject to both the penalties, according to the law.

Bangladesh will also be benefitted if jute is supplied to Nepal, as many Bangladeshi spinners import jute yarn from Nepal to meet their domestic demand, said Upadhayaya, who led the Nepalese delegation.

The balance in bilateral trade between the two countries is tilted towards Bangladesh. In fiscal 2014-15, Bangladesh exported goods worth $25.05 million to Nepal, while it was $13.68 million in the previous year.

Bangladesh imported goods worth $11.50 million from Nepal in fiscal 2014-15 and $21.50 million in the previous year, according to data from the commerce ministry.