Export ban on raw jute relaxed furtherFE Report

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The government has further relaxed the export ban on raw jute despite the scarcity of the fibre in the domestic market.
Under the move, the government has allowed export of entire raw jute, for which letters of credit (LCs) were opened for shipment before imposition of the export restriction on December 7 last.
"As per the Bangladesh Bank (BB) list, the entire volume of raw jute, both awaiting shipment at the port and under process, against which LCs were opened with 16 banks until December 7 can be exported," said a statement, issued Monday by the Textile and Jute Ministry.
Besides, the ministry issued another statement on Tuesday, saying export of BTR (Bangla white rejection) grade of raw jute would not be allowed, said an informed source.
Previously, the same ministry in a circular allowed export of raw jute waiting at ports for shipment after the imposition of the export ban.
Expressing their worries over the latest relaxation of the export ban, the sector insiders said it will further worsen the supply problem of raw jute for local mills.
Citing the BB list, the sector insiders informed the FF that such relaxation would allow about 1.0 million bales of raw jute as per the LCs opened through 16 banks until December 7.
The government through a circular put ban on export of all grades of raw jute in line with the articles 4 and 13 of the Jute Ordinance 1962 following a supply scarcity of the fibre, faced by the domestic jute mills.
The circular, however, said raw jute both in the form of 'kancha and 'pacca' bales that has already been taken to ports but is yet to be shipped will come under the export ban.
Such restriction came against the backdrop of an acute supply shortage of raw jute in the domestic market, which led to an abnormal rise in its price.
The raw jute price has already crossed Tk 2000 per maund, a private jute mill operator said, apprehending a further rise in the basic raw material used by the local jute mills.
He also cautioned that if the price hike and supply crisis of raw jute persist, many of the local jute mills might face closure.