Jute being sold below production cost
Tuesday, 14 August 2007
Our Correspondent
BRAHMANBARIA, August 13 : The local farmers have lost interest in jute cultivation, as they are forced to sell it in the market below the production cost.
The minimum production cost of one maund of 'Tosha' variety of jute is Tk 400, and that of local variety is Tk 350. But the maximum market price of 'Tosha' jute is Tk 390, and that of local jute is Tk 340 this season.
Last year the prices went even below Tk 300.
At present only some rich landowners of the district are cultivating jute in their land, not for collecting fibre but for obtaining sticks, used as fuel and fence.
There have been allegations that the authorities of the state-owned jute mills do not buy jute from the growers directly due to absence of effective marketing facilities.
Consequently, the farmers have to incur heavy loss, as the middlemen and traders buy jute on credit before selling jute to the mills.
BRAHMANBARIA, August 13 : The local farmers have lost interest in jute cultivation, as they are forced to sell it in the market below the production cost.
The minimum production cost of one maund of 'Tosha' variety of jute is Tk 400, and that of local variety is Tk 350. But the maximum market price of 'Tosha' jute is Tk 390, and that of local jute is Tk 340 this season.
Last year the prices went even below Tk 300.
At present only some rich landowners of the district are cultivating jute in their land, not for collecting fibre but for obtaining sticks, used as fuel and fence.
There have been allegations that the authorities of the state-owned jute mills do not buy jute from the growers directly due to absence of effective marketing facilities.
Consequently, the farmers have to incur heavy loss, as the middlemen and traders buy jute on credit before selling jute to the mills.