Business Desk :
Bangladesh’s raw jute prices have surged nearly 19per cent year-on-year. Demand continues to outpace supply, following the government’s ban on polythene bags.
The increase in prices comes as raw jute production is projected to decline due to adverse weather conditions and a reduction in cultivation acreage.
Farmers in key jute-growing regions report that extreme heat during the March-April planting season hindered seed germination. While low prices in previous years discouraged jute cultivation.
The Department of Jute estimates that production may fall to around 7,574,000 bales this fiscal year, down from 8,414,000 bales last year.
Besides, the recent ban on polythene bags in superstores from October and across the country from November 1 has further fueled the demand for jute.