Jute goods export dips for dearth of raw fibre

Exports of jute and jute goods from Bangladesh declined in the first half of the current fiscal year as manufacturers are not getting adequate supply of raw fibre because of hoarding amid exorbitant prices.

According to the Export Promotion Bureau, earnings from the main exportable yarn and twine declined 20.43 per cent year-on-year to $357.48 million in the July-December period.

Shipment of jute sacks and bags was down 28.65 per cent at $65.55 million.

"We are passing an exceptional situation as we have already lost around 40 per cent market share in Turkey due to the scarcity of raw jute," said Sheikh Nasir Uddin, chairman of the Bangladesh Jute Spinners Association (BJSA).

He made the comments during a view-exchange meeting on the current situation of the jute industry at the office of the Bangladesh Jute Mills Association (BJMA) in Dhaka.

Top leaders of the BJMA, the BJSA, the Bangladesh Jute Association, and the Bangladesh Jute Goods Exporters Association were present.

Nasir said despite being a farmer-friendly industry, the sector is totally neglected.

"There is no import cost, while almost 100 per cent of foreign currency earnings remain in Bangladesh and farmers receive 80 per cent of the income," said the chairman of Akij Jute Mills, one of the world's biggest jute yarn makers in terms of processing capacity.

At the meeting, industry operators urged the government to take strict measures against illegal raw jute hoarders to get rid of the scarcity of raw fibre and its sky-high price.

When the government had sought a list of dishonest hoarders, the industry duly provided it to the authorities, but no fruitful action was taken, said Nasir.

Md Abul Hossain, chairman of the BJMA, said, "Some dishonest profiteers have made huge profits by illegally hoarding raw jute and selling them at exorbitant prices by creating an artificial crisis in the market. Though the jute prices appear to be high, real farmers are not receiving a fair price."

"As a result of the exorbitant price, factory output has decreased significantly, and many jute mills have closed their doors, depriving the government of a significant amount of revenue. The government should take immediate action against illegal hoarders."

Industry leaders claimed a huge volume of raw jute was being trafficked into India through smuggling.

They urged the government to properly implement the Mandatory Jute Packaging Act, which was introduced in 2010 in order to reduce the use of plastics and promote the eco-friendly fibre.

They also demanded the implementation of the Jute Law 2017 and fixation of the maximum price of raw jute.