A rise in rates of raw jute in Bangladesh, witnessed in the last two months despite slow exports, which could lead to a drop in production level below last year’s level has put pressure on public and private mills, already under pressure for dwindling export orders. At present, raw jute is trading at Tk 1,600-1,800 a maund (40 kg) in producing regions, which is 13 per cent higher than last year. Subsequently, a section of stockists saw an opening for windfall in the off-season, hoarding most of the supply of raw jute that was made available in the past two months.

Now jute and textiles ministry has directed Department of Jute (DoJ) to take action to ensure adequate supply of the natural fibre in the market. It asked DoJ for measures so that none can hold 1,000 maunds of jute more than a month. The ministry also directed DoJ to prevent traders without licenses to buy and sell raw jute.

Raw jute exports slumped more than 100 per cent last fiscal year to 9.84 lakh bales, according to the DoJ. In case of processed jute, only yarn exports grew marginally but shipment of jute sacks and bags dropped as well in the last fiscal year. According to Export Promotion Bureau, between July and September of current fiscal 2014-15, exports were down 3.94 per cent in terms of value year-on-year.

Motj.gov.bd