JUTE production in the country has sharply declined this year and likely to be around 55 lakh bales down from 84 lakh bales last year — just about one-thirds fall precipitating a significant supply shortfall to need capping of raw jute export, media reports in a national daily on Friday said.
Meanwhile, demand for Bangladesh’s raw jute, jute yarns and finished goods has skyrocketed in the global market when jute production this year has suffered major setback in other jute producing countries like India, Pakistan, Belgium and Brazil. Raw jute now sells over Tk 2200 per maund in domestic market in peak season.
The country’s jute mills owners have therefore demanded levying higher duty on raw jute export to focus on more export of finished goods like jute yarn and jute goods considering their high-value addition. They have rightly raised the issue at a meeting of the National Jute Sector Coordination Committee last week demanding capping of raw jute export and in our view their demands needs to be considered. Otherwise, they fear Indian millers would import all jute from a supply crunch market resulting in closure of local mills.
It appears a section of traders are opposing the capping of raw jute export who mainly work for Indian buyers. As we know India is always bringing pressure on Bangladesh to export raw jute to run their mills discouraging export of jute yarns under a highly unjust anti-dumping duty. Now as demands for jute goods is fast growing in global market Bangladesh seems to have ample opportunity to tremendously gain from finished good exports.
What we need is a strong jute goods diversification plan and marketing strategy. The government should also modernize jute mills to achieve production efficiency to reduce cost. The country earned over U$ 1.0 billion last year from jute goods export and we may target more now as prices have gone up because of lower global production and supply.
So in our view the government must take into account the greater interest of local jute industry. It may permit export of raw jute only if there is a surplus supply. Moreover we can’t ignore the interest of farmers whose production cost is only rising and they must benefit from higher prices.
Meanwhile, demand for Bangladesh’s raw jute, jute yarns and finished goods has skyrocketed in the global market when jute production this year has suffered major setback in other jute producing countries like India, Pakistan, Belgium and Brazil. Raw jute now sells over Tk 2200 per maund in domestic market in peak season.
The country’s jute mills owners have therefore demanded levying higher duty on raw jute export to focus on more export of finished goods like jute yarn and jute goods considering their high-value addition. They have rightly raised the issue at a meeting of the National Jute Sector Coordination Committee last week demanding capping of raw jute export and in our view their demands needs to be considered. Otherwise, they fear Indian millers would import all jute from a supply crunch market resulting in closure of local mills.
It appears a section of traders are opposing the capping of raw jute export who mainly work for Indian buyers. As we know India is always bringing pressure on Bangladesh to export raw jute to run their mills discouraging export of jute yarns under a highly unjust anti-dumping duty. Now as demands for jute goods is fast growing in global market Bangladesh seems to have ample opportunity to tremendously gain from finished good exports.
What we need is a strong jute goods diversification plan and marketing strategy. The government should also modernize jute mills to achieve production efficiency to reduce cost. The country earned over U$ 1.0 billion last year from jute goods export and we may target more now as prices have gone up because of lower global production and supply.
So in our view the government must take into account the greater interest of local jute industry. It may permit export of raw jute only if there is a surplus supply. Moreover we can’t ignore the interest of farmers whose production cost is only rising and they must benefit from higher prices.
