25 pvt jute mills shut down, many face closure
Thursday, 13 May 2010
FE Report
At least 25 private jute mills have been shut down and several others are facing closure mainly because of scarcity of raw jute and an abnormal rise in its prices, sector insiders said.
"An acute supply crisis of raw jute and its high prices at the domestic market are badly affecting the country's local jute industry," said a private jute miller.
The local jute mills have been facing a serious supply shortage of raw jute over the last few months, said Fazlur Rahman, executive director of a jute manufacturing unit.
Following the supply scarcity, the price of raw jute have registered an 'abnormal' rise in the market, pushing the production costs of the local jute mills significantly up, Mr. Rahman, who was a former vice president of Private Sector Consultative Board of the International Jute Study Group, said in a press statement.
According to the industry sources, raw jute is still selling between at Tk 2200 and Tk 2600 per maund in the local market.
And the country's jute millers find themselves in a difficult situation to afford such exorbitant prices, they said.
Against this backdrop, a number of jute mills have already suspended operation and many others have cut their productions.
At least 25 private jute mills have been shut down and several others are facing closure mainly because of scarcity of raw jute and an abnormal rise in its prices, sector insiders said.
"An acute supply crisis of raw jute and its high prices at the domestic market are badly affecting the country's local jute industry," said a private jute miller.
The local jute mills have been facing a serious supply shortage of raw jute over the last few months, said Fazlur Rahman, executive director of a jute manufacturing unit.
Following the supply scarcity, the price of raw jute have registered an 'abnormal' rise in the market, pushing the production costs of the local jute mills significantly up, Mr. Rahman, who was a former vice president of Private Sector Consultative Board of the International Jute Study Group, said in a press statement.
According to the industry sources, raw jute is still selling between at Tk 2200 and Tk 2600 per maund in the local market.
And the country's jute millers find themselves in a difficult situation to afford such exorbitant prices, they said.
Against this backdrop, a number of jute mills have already suspended operation and many others have cut their productions.