Jute export income falls by 13 per cent
Thursday, 12 January 2012
Arafat Ara
Export earning from the jute sector declined by 13 per cent in six months to December due to lower demand and prices of raw jute and jute goods in the international market, industry insiders said.
They said the declining trend of jute price overseas has been continuing for several months.
With the euro-zone crisis deepening, the requirements of jute products have also turned downward, the sector leaders said.
The country earned US$ 477.10 million during July-December period of 2011-12, down from US$ 548.66 million in the corresponding period of the last fiscal year, Export Promotion Bureau (EPB) data showed.
The sector also missed the target of export earning during the period to US$ 548.66 million from US$ 627.07 million.
During the July-December period in fiscal year, the country earned jute yarn exports $ 227.84 million, down from $ 248.40 million and $ 125.37 million from raw jute lower from US$ 184.66 million in the corresponding period of last year.
The authority has fixed the target of export earning of the sector US$ 1,341.04 million for the fiscal year 2011-2012.
Bangladesh Jute Spinners Association (BJSA) Chairman Muhammad Shams-uz-Zoha said jute yarn, which accounts for over 60 per cent of total export earnings from the sector, is mainly exported to Turkey.
He said presently, Turkey has reduced yarn import from the country, fearing the fallout of the European crisis. The demand from other countries has also dropped by this time, he added.
Middle East, North African countries and Turkey import 66 per cent of Bangladesh's yarn to use it as a raw material for making carpet.
Belgium, Saudi Arabia, Syria, Jordan and Egypt also buy jute yarn and jute goods from Bangladesh.
"Bangladesh usually exports 350,000 to 380,000 tonnes of yarn a year and the rest of the total global demand is met mainly by India," said the BJSA leader.
Bangladesh Jute Association (BJA) chairman Mahfuzul Haque said the demand and price of raw jute have decreased recently in overseas markets.
He said international buyers have been offering low prices for jute amid the price fall in the local market.
He said last year they sold per ton raw jute at $ 700, which came down to around $ 400 in the international market.
Mr Haque noted that they bought per maund of raw jute at Tk 1,600 in the beginning of the season. "Presently, the price of the golden fiber has fallen nearly 50 per cent in the local market."
BJA exported 2.2 million bales of raw jute last year but this year it will be able to export 1.8 million to 2.0 million bales due to the global meltdown, said the traders.
India, China and Pakistan are the major buyers of Bangladeshi raw jute. Vietnam, Ivory Coast, Malaysia, the Netherlands, Nepal, Bhutan, USA, Russia, and Thailand also import raw jute from the country.
Export earning from the jute sector declined by 13 per cent in six months to December due to lower demand and prices of raw jute and jute goods in the international market, industry insiders said.
They said the declining trend of jute price overseas has been continuing for several months.
With the euro-zone crisis deepening, the requirements of jute products have also turned downward, the sector leaders said.
The country earned US$ 477.10 million during July-December period of 2011-12, down from US$ 548.66 million in the corresponding period of the last fiscal year, Export Promotion Bureau (EPB) data showed.
The sector also missed the target of export earning during the period to US$ 548.66 million from US$ 627.07 million.
During the July-December period in fiscal year, the country earned jute yarn exports $ 227.84 million, down from $ 248.40 million and $ 125.37 million from raw jute lower from US$ 184.66 million in the corresponding period of last year.
The authority has fixed the target of export earning of the sector US$ 1,341.04 million for the fiscal year 2011-2012.
Bangladesh Jute Spinners Association (BJSA) Chairman Muhammad Shams-uz-Zoha said jute yarn, which accounts for over 60 per cent of total export earnings from the sector, is mainly exported to Turkey.
He said presently, Turkey has reduced yarn import from the country, fearing the fallout of the European crisis. The demand from other countries has also dropped by this time, he added.
Middle East, North African countries and Turkey import 66 per cent of Bangladesh's yarn to use it as a raw material for making carpet.
Belgium, Saudi Arabia, Syria, Jordan and Egypt also buy jute yarn and jute goods from Bangladesh.
"Bangladesh usually exports 350,000 to 380,000 tonnes of yarn a year and the rest of the total global demand is met mainly by India," said the BJSA leader.
Bangladesh Jute Association (BJA) chairman Mahfuzul Haque said the demand and price of raw jute have decreased recently in overseas markets.
He said international buyers have been offering low prices for jute amid the price fall in the local market.
He said last year they sold per ton raw jute at $ 700, which came down to around $ 400 in the international market.
Mr Haque noted that they bought per maund of raw jute at Tk 1,600 in the beginning of the season. "Presently, the price of the golden fiber has fallen nearly 50 per cent in the local market."
BJA exported 2.2 million bales of raw jute last year but this year it will be able to export 1.8 million to 2.0 million bales due to the global meltdown, said the traders.
India, China and Pakistan are the major buyers of Bangladeshi raw jute. Vietnam, Ivory Coast, Malaysia, the Netherlands, Nepal, Bhutan, USA, Russia, and Thailand also import raw jute from the country.