Jute, jute goods export sharply declines this fiscal

The country’s jute and jute goods export recorded a sharp fall in the current fiscal year (2013-1014). The reasons can be attributed to depreciation of Indian Rupee on the one hand and sluggish demand in the world market on the other.
The export earning fell by about 30 per cent during the period, according to Export Promotion Bureau(EPB) information. The country earned about US $592 million in July-January period as against US $646 million in the corresponding period of last fiscal year, EPB source told the media.
During the last few months India which has been importing between 55-60 per cent of the country’s raw jute, has reduced the volume of its imports causing decline in export.
Iran, another export destination of jute and jute goods has slashed import of jute following sanctions by western countries, they said. The instability in Syria and Egypt have also contributed to decline in export of jute and jute goods, they said adding export to Pakistan has also suffered.
India imported around 40,000 bales during the first seven months of the current fiscal (2013-14) as against 8.9 lakh bales of raw jute during 2012-2013), EPB source said.
When contacted Chowdhury Sabbir Yusuf, Chairman, Bangladesh Jute Spinners Association told The New Nation on Sunday that export market for jute and jute goods has been reducing also for European economic recession and prevailing political situation in Middle East. The export market of jute and jute goods to countries like Iran and Syria has become uncertain, he said. Iran, he said used to import about 70,000 tons of jute and jute goods annually while Syria’s import was about 40,000 tons of jute and jute goods. But export to those countries has become uncertain, he said. Expressing disappointment over the situation, Sabbir Yusuf said the situation is not likely to improve in near future.
China, Vietnam and European countries- the other traditional importers of jute and jute goods have also imported reduced quantity of jute and jute goods due to recent political unrest in the country, another source said adding some of the millers have cut down the price of their products to retain their markets.
The importers have been offering lower prices of jute and jute goods following decline in demand, another source said adding sometimes the importers are offering prices below the production cost.
One ton of jute yarn is selling at around US $ 1000 as against $1100-1150 in the previous financial year, the source said. Some exporters however, blamed absence of modern machinery and lack of research and development activities on jute goods for actual growth of the sector.
Meanwhile, demand has been raised by jute producers ands exporters to increase local consumption of jute through implementation of Jute Packaging Act.
” If the local demand increases, a huge amount of foreign exchange would be saved which is spent for import of plastic and synthetic goods,” another source said adding India started mandatory use of jute since 1987. Though Bangladesh enacted the mandatory jute packaging act in 2010, the law is yet to be implemented.
If the government does not take urgent steps to save the farmers, he said, the production will suffer in the coming days. The exporters urged the concerned authorities also to explore new markets for jute and jute goods to save the sector from ruination.
Presidential elections are scheduled for 25 May.