Don't slap ban or duty on raw jute export

Raw jute exporters called on the government on Monday to refrain from imposing any ban or duty on the export of raw jute to protect this sector.
The Bangladesh Jute Association (BJA) and the Shippers Council of Bangladesh (SCB) came up with the demand at a press conference at a city hotel.
The leaders of the two organisations argued that the international market for Bangladeshi raw jute has already shrunk because of the export ban slapped several times in the past.
Previously, Bangladesh exported 2.8 to 3.0 million bales of raw jute a year. The figure has now come down to 0.8 to 0.9 million bales, they said.
If export duty is imposed again, the sector would face ruin, they feared.
A section of jute spinners has recently suggested that the Ministry of Textiles and Jute impose an export duty on raw jute, arguing that there is a scarcity of raw jute in local market, BJA chairman Sk. Syed Ali said in a written speech.
When the country needs to reduce trade gap through increasing export earnings, such proposal is very unfortunate, he said.
Initially, the government fixed the production target of raw jute for this fiscal year at over 9.2 million bales, which was later revised downward to 8.4 million bales considering the impacts of prolonged floods on raw jute production.
The domestic demand for raw jute was 5.5 million bales a year before the mills of Bangladesh Jute Mills Corporation (BJMC) were closed down. Of the total volume, BJMC's mills used about 1.3 million bales.
As the BJMC's mills are not in operation now, the domestic demand for raw jute declined.
Moreover, the millers returned unused raw jute to their suppliers after the BJMC mills stopped production.
So, a significant volume of raw jute will remain unused in the country. And of the total unused raw jute, only 0.8 to 0.9 million bales can be shipped abroad, the jute exporters said.
Even after the export, a big volume of raw jute will be available in the country to meet the domestic demand, they observed.
They pointed out that a large number of manpower is involved in this sector. If the export of raw jute comes to a halt, these people will be badly affected.
They also demanded that the raw jute exporters be included in the list of beneficiaries of incentive package announced by the Prime Minister for the sectors affected by the Covid-19 pandemic.
They also appealed for providing subsidy on the raw jute export.
SCB Chairman Md Rezaul Karim was also present at the press conference.

[email protected]