Govt gets tough on raw jute hoarders

Dealers or warehouse owners can now store a maximum of 1,000 maunds of raw jute for only one month, Jute and Textiles Minister Golam Dastagir Gazi said yesterday.

The government has set the limits to ensure smooth supply of the raw jute in the local market and speed up export, he said.

"The country's jute mills are struggling due to the scarcity of raw jute. So the jute and textiles ministry has ordered the Department of Jute to take effective steps in this regard."

Steps will also be taken to ensure that the unlicensed traders are barred from getting involved in sales, purchase or store of raw jute and none can sell or purchase wet jute, he said.

Gazi spoke at a meeting with the leaders of Bangladesh Jute Mills Association and Bangladesh Jute Spinners Association at the Secretariat in the capital.

The government has issued the order at a time when raw jute prices have almost doubled since the July-August harvesting season thanks to a supply shortage in the local market.

By the time, export earnings from jute yarn, twine, sacks and bags have also seen a huge rise.

Jute is now sold at Tk 4,200 a maund in Faridpur, the country's largest grower of the fibre, up from Tk 2,200-2,400 in the July-August period.

Export earnings from jute and jute goods increased 30.56 per cent year-on-year to $668.11 million in the July-December period of the 2020-21 fiscal year, which is also 19.29 per cent higher than the target.

The government is also working to ensure a stable supply of jute seeds to help the country reach its jute production target for the current season, the minister said.

The agriculture ministry and the jute and textiles ministry have jointly prepared a five-year roadmap to make Bangladesh self-sufficient in production of quality jute seeds, he said.

"The government will start implementing the roadmap from this season and it will be implemented in the next five years. If everything goes according to plan, Bangladesh will be self-sufficient in high quality jute seeds production by 2025."

Under the annual development plan, a project for the production and distribution of modern jute and jute seeds is now ongoing in 230 upazilas of 46 districts.

Each year, 153,000 jute growers are getting directly benefitted under the project while the number of indirect beneficiaries include 612,000 farmers and their families.

Textiles and Jute Secretary Lokman Hossain Mia was also present in the meeting.