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India, Pakistan want BD to lift ban on raw jute export

Syful Islam | December 28, 2015 00:00:00


Both India and Pakistan have been repeatedly requesting Bangladesh to lift fully the ban it has imposed on the export of raw jute.

They say the 'obstruction' created thus is hurting production in their jute mills, officials said.

The government of Bangladesh on November 3 last slapped the ban on raw jute export for a month to raise the supply of raw material to local jute mills. Later, it extended the ban for an indefinite period.

However, in response to requests from different countries, the government on December 15 relaxed the ban, allowing the export of raw jute for some selective categories like machine processed cut fibre (10-120mm), jute sliver and jute tote.

But the ban on export of other categories of raw jute has remained in force since then which, India and Pakistan said, has put production in their mills on the verge of collapse.

The government imposed the ban as part of its efforts to implement the Mandatory Jute Packaging Act 2010.

Commerce Secretary Hedayetullah Al Mamoon acknowledged receiving such requests from India and Pakistan and sending those to the Ministry of Textile and Jute (MoTJ) for actions.

"Yes, we are getting requests for withdrawal of the ban both from millers and the governments of jute importing countries. We are forwarding those to the jute ministry for necessary steps," he said.

He added: "Our ministry has nothing to do in this regard. The jute ministry is designated to take decisions."

Sources said the Bangladesh mission in Karachi had recently forwarded some documents to the Ministry of Commerce (MoC) and the Ministry of Jute where Pakistan Jute Mills Association (PJMA) said all their efforts had gone in vain as Bangladesh slapped a ban for an indefinite period, putting the Pakistan's jute industry on the verge of collapse.

Pakistan is a major importer of Bangladeshi raw jute which meets the basic raw material needs of its jute industry from single country imports.

The PJMA had requested the government of Bangladesh to reconsider the decision on the ban on jute export. Otherwise it fears production in jute mills of Pakistan will come to a complete halt within a month.

Sources said the Indian High Commission in Dhaka also sent several letters to the commerce and jute ministries for lifting the ban on raw jute export totally.

Officials said as part of its efforts to implement the mandatory jute packaging act, the government is carrying out drives across the country to promote the use of jute sacks in rice mills instead of plastic-made bags.

According to the government's estimation, nearly 41 million pieces of jute sacks will be needed for 16,300 rice mills across the country. The millers are processing nearly 2.03 million tonnes of rice per month.

Bangladesh is a key raw jute exporter in the world. The country's annual earnings from the jute sector amount to US$ 900 million, of which raw jute has a 13 per cent share, data of the Export Promotion Bureau shows.

On an average, Bangladesh annually exports 2.1 million bales of raw jute, out of its total production of 5.8 million bales. Some 3.8 million bales of jute are being consumed locally.

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