Jute exports dropped by 20pc in first ten months of FY23
Staff Reporter :
Export earnings from the Jute and Jute goods significantly declined by 20.25 per cent during July – April of the current financial year of 2022-2023. All sub-sectors involving to earn from jute exports like raw jute, jute yarns, and jute sacks witnessed a downward trend in the first ten months of this FY23.
As per the last provisional data released by the Export Promotion Bureau (EPB), the exports of jute and jute goods decreased to $770.82 million in the first ten months of the current fiscal which was $966.51 million in the same period of the last fiscal year.
Earlier, in FY22 Bangladesh’s exports of these goods amounted to $1,127.63 million. A target of $1,280 million was set by the country for the current fiscal 2022-23.So far, only 60.15 of target being achieved while just two months left.
The data also showed, raw jute exports reduced by 4.76 per cent in this period of ten months. Jute yarn and twine experienced a major downfall by 30.13 per cent year-on-year to $420.35 million from $ 601.59 million in the same period. Export of jute sacks and bags, and other jute goods also slipped by 4.96 and 0.93 per cent respectively in FY23.
Exports of carpets mostly jute carpet also declined sharply by 34.82 per cent to $20.8 million in July to April period under review from $31.91 million in the same period last year.
According to the experts, lack of product diversity of jute goods, the shrinking global demand of jute products, increasing domestic production cost, poor trade diplomacy regarding jute and jute goods, aggressive marketing of the rival countries and the persisting anti-dumping duty imposed by India are the reasons for declining jute exports in here.
Regarding the export down turn of jute and jute goods, Mohammed Mahbubur Rahman Patwari, a former chairman of the Bangladesh Jute Spinners Association (BJSA), said “Jute exporters are struggling to sustain in the global market even after cutting prices, owing to the shrinking global demand”.
Abul Hossain, chairman of the Bangladesh Jute Mills Association, blamed the policy of persisting anti-dumping duty issued by the Indian government for the low export performance.
“The anti-dumping duty is a major problem for local jute exporters,” he said.
In December2022, India extended the Anti-Dumping Duty (ADD) on jute products imported from Bangladesh by another five years.
Meanwhile, world’s leading jute-growing countries at present are India, Bangladesh, China and Thailand. India is the present world’s largest producer of raw jute and jute goods. It contributes to over 50 per cent and 40 per cent respectively of global production. Decades ago this enviable position used to be held by Bangladesh.
