Kazi Zahidul Hasan :
The government has extended the ban on raw jute export for an indefinite period in order to make the implementation of the Mandatory Jute Product Packaging Act-2010 a success.
The Ministry of Textile and Jute (MoTJ) issued a fresh circular in this regard on Thursday which was signed by MoTJ’s Senior Assistant Secretary Baby Parvin.
“The ban was imposed Under Section 4 and 13 of the Jute Ordinance 1962. Export of all kinds of raw jute will remain under suspension until further notice for proper implementation of the Mandatory Jute Packaging Act,” according to the circular.
Earlier, the MoTJ imposed the ban effective from November 03 to December 02. The month-long ban expired yesterday (Thursday).
“The ban has been slapped in the wake of short supply of the natural fibre in local market. Such a supply shortage has created hindrances to smooth production of jute products like bags and sacks which is a potential barrier to the implementation the Mandatory Jute Product Packaging Act-2010,” a senior MoTJ official told The New Nation yesterday confirming the ban.
He said: “The latest government move will remove the supply constraint of the natural fibre in the domestic market ultimately helping the millers boost their production, which is crucial for executing the jute product packaging Act.
The official also said that demand and price of the golden fibre goes up in the market following the government’s stringent measures to implement the jute product packaging Act. It encourages many traders to involve in illegal hoarding of huge quantities of raw jute for which the jute mills were not getting jute as per their requirements.
“Considering the fact, the government has also started drives against the dishonest traders involved with illegal stocking,” he said, adding, “At the same time, the law-enforcing agencies are conducting raids to ensure use of jute bags in production and manufacturing for the proper implementation of the Act”.
Meanwhile, Bangladesh Jute Mills Corporation (BJMC), Bangladesh Jute Spinners Association (BJSA) and Bangladesh Jute Mills Association (BJMA) hailed the latest government’s move to impose the ban on raw jute export for an indefinite period.
Terming the move as ‘praiseworthy’, BJSA Chairman Ahmad Hossain told The New Nation yesterday that the decision would help revive the ailing millers as well as the past glory of the country’s jute sector.
“A long term ban may encourage the unscrupulous traders for smuggling of raw jute into the neighbouring countries which largely depends on Bangladeshi raw jute to run their mills. This is a critical area that the government looks into utmost sincerity. Otherwise, the local millers will be deprived of benefit from the ban,” he noted.
“It was a good move. The government decision makes us happy,” a senior BJMC official told The New Nation yesterday in his reaction to the latest government move.
He said, “The latest move of the government can make the BJMC profitable again”. BJMC sustains losses over the years though it is the largest producer of jute and jute blended products having 26 mills in its jurisdiction.
The cash strapped Corporation recently in a letter to the Finance Ministry demanded Tk 300 crore for buying raw jute and providing gratuity to its workers.
Worried by the latest government move, Secretary of Bangladesh Jute Association (BJA) Abdul Quayyum said, “The indefinite ban will definitely leave an adverse impact on our shipment”.
He said, not only local jute mills, but Nepalese, Pakistani and parts of Indian jute mills are also totally depended on Bangladeshi raw jute. There are apprehensions that many of their mills might face closure due to the long-term ban of raw jute export by Bangladesh.
“If it happens, it will erode confidence of the foreign buyers harming our long term business relations with them. It will also lead to a drastic fall in export earnings from raw jute sector,” he said.
According to the Department of Jute (DoJ), the country’s demand for raw jute now stands at 7.5 million bales. Of the quantity, jute spinners use the highest 3.6 million bales while the BJMC and the BJMA 1.2 million bales each. Raw jute export stands at 1.5 million bales.
Production of jute was 7.5 million bales in the last financial year (FY’15) which is expected to decline in the current financial year due to heavy rain and during cultivation period, according to the Bangladesh Bureau of Statistics.
