Export earning from jute sector drops by 6pc in last five months

---

Arafat Ara Export earning from jute sector dropped by six per cent during the July-November period of current fiscal year (2011-12) due to debt crisis in developed countries, said industry leaders. Following the financial crisis in Europe we are getting less response from the foreign buyers of jute products, they said. The sector insiders said requirements of jute products mainly raw jute and jute yarns have declined significantly recently. The country has earned US$ 410.30 million in five months of this fiscal year, lower from US$ 434.64 million in the corresponding period of last fiscal year, Export Promotion Bureau (EPB) data showed. The sector also missed the target of export earning during the period from US$ 509.46 million to US$ 410.30 million. During the July-November period in fiscal year 2011-12 the country earned from jute yarn export US$ 193.24 million, down from US$ 199.79 million and US$ 113.66 million from raw jute lower from US$ 145.06 million in the corresponding period of last year. Bangladesh Jute Spinners Association (BJSA) Chairman Muhammad Shams-uz-Zoha said jute yarn, which accounts for over 60 per cent of total export earnings from the sector, is mainly exported to Turkey. He said presently Turkey has reduced jute yarn import from the country because of their financial crises. Besides, the demand from other countries has also declined by this time. According to him, of the total production, 95 per cent of the jute yarn is exportable. Middle East, North African countries and Turkey import 66 per cent of Bangladesh's yarn to use it as a raw material for making carpet. Belgium, Saudi Arabia, Syria, Jordan and Egypt also buy jute yarn and jute goods from Bangladesh. "We exported nearly 140,000 tonnes of such fabric in Turkey in a year," mentioned the BJSA Chairman adding that if the recession continues they won't be able to achieve the target this year. "Bangladesh usually exports 350,000 to 380,000 tonnes of yarn a year and rest of the total global demand is met mainly by India," said the spinner. Bangladesh Jute Association (BJA) chairman Mahfuzul Haque said the demand and price of raw jute have decreased recently in the overseas markets. He said international buyers have been offering low prices for jute amid price fall in the local market. He said last year they sold per tonne raw jute at $ 700. In the present fiscal, the price of the product is varying from $ 420 to $ 460 in international market. "The buyers have attributed the price fall of the product to Bangladesh media reports that raw jute price has decreased substantially in the country. So they are offering comparatively a lower price," said BJA chairman adding we have purchased the product at a higher price on the eve of the season. Mr Haque mentioned that they bought per maund raw jute at Tk 1600 in the beginning of the season. "Presently the price of the golden fiber has fallen nearly 50 per cent in the local market as the millers have reduced the volume of purchase." He said many traders incurred losses for buying jute at high prices. The loss has squeezed the buying capacity of the traders. "We are not able to meet the demand of the international market of the product this year as we can't purchase raw jute due to shortage of fund", he added. BJA exported 2.2 million bales of raw jute last year but this year it will be able to export 1.8 million to 2.0 million bales due to financial crisis, said the traders. India, China and Pakistan are the major buyers of Bangladeshi raw jute. Vietnam, Ivory Coast, Malaysia, the Netherlands, Nepal, Bhutan, USA, Russia, and Thailand also import raw jute from the country.