Country\\\'s jute, jute goods export earning falls by 30pc this fiscal

Country's jute and jute goods export decreased dramatically in the current fiscal year (FY) 2013-14 following depreciation of Indian rupee and sluggish demand in the world market, industry insiders said.
According to data available with the Export Promotion Bureau (EPB), the export earning declined by more than 30 per cent during the period. The country earned nearly US$592 million in July-January period of the current fiscals against US$646 million in the corresponding period of the last fiscal year.
Millers and exporters said the neighbouring India, that used to buy about 55-60 per cent of the total raw jute exports of Bangladesh, has cut the level of its imports from the country in the last few months, which accelerated the fall in jute exports.
Iran, another raw jute importer, has also slashed buying jute due to economic sanctions imposed by the western countries, they added.
In addition, the prevailing sour relations with Pakistan and the instability in Syria and Egypt, which are traditionally jute and jute goods importers, have caused a decline in exports.
"Demand for local jute and jute goods has drastically fallen in the world market in the current FY largely because of decline in export by India, the main importer of raw jute of Bangladesh," deputy managing director of Janata Jute Mills Ltd Mahmudul Huq told the FE.
According to him, India which alone imported about 8.9 lakh bales of raw jute in the last FY 2012-13, has imported only around 40,000 bales during the first seven months of the current FY 2013-14.
"Moreover, China, Vietnam and European countries - the other regular importers of local jute and jute goods have also imported in small-scale due to the recent volatile political situation."
He said many of the millers were forced to cut down prices to retain their markets. They are also actively considering job cut in their mills to reduce overhead costs.
"Buyers are offering lower prices of jute and jute goods amid decrease in demand. Sometimes, the importers are offering prices below the production cost," Mr Huq informed.
According to Mr Huq, at present, a tonne of jute yarn is selling at around $1,000, which was $1,100-1,150 in the previous financial year.
However, many exporters blamed absence of modern machinery and lack of research and development (R&D) activities on jute goods for fall in actual growth of the sector.
Besides, the recent political unrest in Bangladesh has also created shipment problems in exporting the finished jute goods, causing heavy financial losses in the jute sector, they informed.
However, in this situation, jute producers, processors and exporters demanded of the government to increase local consumption of jute by implementing immediately the Jute Packaging Act.
"If the local demand increases then the production would also rise thus saving a large amount of foreign currencies as imports of plastic and synthetic goods would be reduced," a mill-owner said preferring anonymity.
India started mandatory use of jute since 1987. Though Bangladesh enacted the mandatory jute packaging act in 2010, the law is yet to be implemented, an official of Bangladesh Jute Mills Corporation told FE preferring anonymity.
General Secretary of Bangladesh Jute Growers' Samity Harun-Ur Rashid said many farmers kept their goods stocked in warehouses as millers are now reluctant to buy jute following sluggish demand.
"If the government fails to save the farmers then production might fall in the coming days," he added.
Meanwhile, millers and exporters urged the government to explore new markets for jute exports immediately to save both the millers and growers.
They said Lebanon, Thailand and some other countries recently showed interest to import jute and jute goods from Bangladesh where government's active initiative is very urgent.