Polythene ban drives growth in jute industry

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Staff Reporter :

The government’s recent ban on polythene bags in superstores from last month, with a nationwide implementation from 1 November, has further fueled the demand for jute.

However, insiders report that demand continues to outstrip supply, exacerbating market pressures.

According to a source at the Ministry of Textiles and Jute, raw jute prices have risen nearly 19 per cnet year-on-year due to the increased demand following the government’s policy change.

The Department of Jute attributes this price surge to a projected decline in raw jute production, influenced by adverse weather conditions and reduced cultivation acreage.

Extreme heat during the March-April planting season hindered seed germination, while low prices in previous years discouraged many farmers from growing jute.

Production is estimated to fall to approximately 7,574,000 bales this fiscal year, down from 8,414,000 bales last year.

In Faridpur, a major jute-producing district, high-quality raw jute is now selling for Tk 3,800 per maund (37 kilograms), compared to Tk 3,200 last year.

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Medium-quality jute prices have also risen by Tk 600, reaching Tk 2,600 per maund.

Despite higher prices, many farmers have struggled to benefit fully, as they were forced to sell their harvest soon after the June-September period to cover rising agricultural costs, including fertilisers and labour.

In Magura, another key jute-growing district, farmers reported significantly lower yields this year.

One farmer noted a harvest of just 50 maunds of raw jute from five bighas of land, down from 96 maunds last year. However, the improved fibre quality enabled better prices.

The increased demand for jute highlights its critical role in ensuring the continued operation of jute mills and supporting the export of jute products.

The current situation underscores the importance of fair pricing to sustain jute cultivation.

As a cornerstone of Bangladesh’s agricultural economy and export potential, addressing these challenges will be crucial for the sector’s long-term viability.