Bangladesh’s earnings from jute exports slumped for the second consecutive year in July-January, raising concerns for the promising industry, one of the few sectors for which raw materials are locally available. The global economic slowdown, shrinking demand, increasing domestic production cost and the persisting anti-dumping duty imposed by India played a part in dragging exports down.
The country’s jute industry fetched $548 million by selling jute and jute-made products in the first seven months of the current financial year of 2022-23, down 21.22 per cent year-on-year. In the same period of 2021-22, the export receipts stood at $696 million, also a decrease of 9 per cent from a year prior. Jute exporters are struggling to sustain in the global market even after cutting prices, owing to the shrinking global demand.
The jute yarn export suffered because of a dip in demand among carpet makers, the main user of the item. Bangladesh usually exported 220,000 tonnes of yarn to Turkey, the key market. But the shipment to the country declined by nearly 100,000 tonnes as carpet makers have cut production in the face of falling demand for the products because of the war in Ukraine and the slowdown in the global economy. The anti-dumping duty is a major problem for local jute exporters. In December, India extended the anti-dumping duty on jute products imported from Bangladesh by five years.
Jute millers cited the country’s high production cost stemming from high energy prices, driven by the spike in both gas and electricity tariffs. As a result, a number of jute textile millers have been either forced to shut-down their factories or operate below their capacity.
The anti-dumping policy is a major barrier for us as India is a big market for Bangladeshi jute. The government should try to negotiate the issue as soon as possible. The government must take steps to promote the golden fibre by implementing supportive policies.