Jute spinners demand suspension of raw jute exports amid supply crunch
Business Report :
Bangladesh Jute Spinners Association (BJSA) on Sunday urged the government to completely suspend raw jute exports, warning that continued exports amid declining production and soaring prices could severely damage the country’s jute industry.
The demand was formally placed through an application submitted on January 1 to the commerce and textiles and jute ministries.
On Sunday, a delegation of the association met with commerce and textiles adviser Sheikh Bashiruddin to reiterate their concerns.
According to the association, raw jute production declined in the last season due to natural disasters and other adverse factors.
Although the government allowed conditional exports of raw jute through a gazette notification in September, the move has once again led to supply shortages and sharp price hikes in the domestic market.
Industry insiders said the price of raw jute has recently surged to Tk 4,700-5,000 per maund, making it increasingly difficult for jute mills to procure adequate raw materials. As a result, many mills are struggling to maintain production, and some are at risk of closure, they warned.
BJSA Chairman Tapas Pramanik alleged that the export opportunity and rising prices have encouraged illegal hoarding of raw jute, creating market instability.
He said farmers are not benefiting from the price increase, while hoarders are making excessive profits.
“If raw jute exports and illegal stockpiling are not stopped immediately, genuine farmers and jute-based industries will suffer badly,” he said, adding that a large amount of undisclosed money has reportedly been invested in jute hoarding.
He also cautioned that escalating production costs are making Bangladeshi jute products uncompetitive in the international market, forcing foreign buyers to look for alternative products.
Regaining lost export markets in the future would be extremely difficult, he added.
In response, Adviser Sheikh Bashiruddin assured the delegation that the government has adopted a zero-tolerance policy against illegal jute hoarding.
He said legal action would soon be taken in four major jute-producing districts to curb stockpiling.
The adviser also said the government would review the demand for a complete suspension of raw jute exports.
Addressing concerns over jute seed shortages, he said that steps have already been taken to ensure the availability of quality seeds in the current season.