Jute export volume down in Q1

Yasir Wardad Export volume of jute goods declined in the first quarter of the current fiscal year hurt by poor demand, but the shipment value rose, compared with the same period a year ago. Shipment from public and private jute mills dropped from 0.113 million tonnes to 0.099 million tonnes in July-September period of 2012 financial year, data released by the Export Promotion Bureau (EPB) showed. Export value increased by 16.89 per cent to $244 million in the first quarter from $ 209 million, although it missed target by 23 per cent. The state-run bureau has set a target of $317 million. Last year, the jute sector stepped into the billion-dollar-mark by fetching $1.11 billion exports. Bangladesh Jute Mills Corporation (BJMC) shipped 17,433 tonnes of jute worth Tk 1,520 million in the first quarter when it was 24,726 tonnes worth Tk 1,780 million in 2011 fiscal. Export volume of mills under the Bangladesh Jute Spinners Association (BJSA) fell by 16.34 per cent to 60,515 tonnes in Q1 of 2012 from 70,403 tonnes in the last fiscal. Sector insiders expressed their concern that the target of $1.341 billion exports at the end of the current fiscal would "tougher to achieve." BJMA chairman Mr Najmul Haque said, "A demand squeeze amid political turmoil in the Middle-East and North-African states and debt crisis in Euro zone contributed to the fall in export volume". Talking to the FE, he said that the government should implement the Mandatory Jute Packaging Act 2010 to increase local consumption of jute products to 50 per cent from present 10 per cent. "The local consumption will give us the opportunity to bargain for higher prices and it could work as a shield against the ups and down in the international market," he said. BJSA chairman Muhammad Shams-uz Zoha said that the industry is facing a setback for the imposition of 4.0 per cent Countervailing Duty (CVD) by the Indian government on jute yarn. The government should immediately discuss the issue with the Indian authorities, he said. Bangladesh Jute Exporters' Association (BJEA) and Bangladesh Jute Association (BJA) said export was nearly 2.2 million bales of raw jute last year, which may reduce to 2.0 million bales this year.