Jute exports fetch $643m in July-Jan
Shah Alam Nur | Saturday, 5 March 2011
Shah Alam Nur
Export earnings from jute goods increased by 53.95 per cent during the first seven months of the current fiscal year. The earnings during July-January period of FY 2010-11 stood at $643.48 million compared to $417.99 million during the same period of the last fiscal, says the Export Promotion Bureau (EPB). Bangladesh earned $215.17 million by exporting raw jute during the period as against $112.18 million over the same period of the 2010 fiscal year, according to EPB estimates. EPB vice chairman Jalaluddin Ahmad said, "We see a bright future of jute product following the recent ban on plastic use in European countries". The demand of jute product has increased more than in the past, he added. Mr. Ahmed said the government has directed state-owned banks to disburse loans to both private and public sector jute mills so that middlemen cannot manipulate the market. "We don't want to export raw jute. Rather, we want to add value to it in order to create local job opportunities," the EPB vice chairman told the FE. According to Bangladesh Jute Mills Corporation (BJMC), export price of jute goods and raw jute rose by around 35 per cent this fiscal year. "BJMC's export in July-January period is already 160,000 tonnes while it was only 80,000 tonnes last year," said Samsul Haque, a director of the state-owned BJMC. BGMC, which is operating 16 jute mills, is on track to become a profitable concern. A total of 12 jute mills are running profitably while the rest are on course to make profits soon, Mr. Haque said. Meanwhile, the government has allocated Tk 8.0 billion to the BJMC to buy raw jute, the official said. Some 16 BJMC mills now produce 550 tonnes of jute goods a day, which could reach more than 700 tonnes if uninterrupted power supply is ensured, Mr. Haque said. Bangladesh Jute Mills Association (BJMA) secretary Abdul Barik Khan told the FE that they were forced to close down 13 BJMA jute mills out of 92 due to lack of fund and power crisis. He, however, said many of them are running partially. He also said, "BJMA mills can produce around 14,000 tonnes per month despite having production capacity of 22,000 tonnes". Mr. Khan said he is hopeful about the sector but extra care is required from the government side to bring back the past glory of the jute industry.
Export earnings from jute goods increased by 53.95 per cent during the first seven months of the current fiscal year. The earnings during July-January period of FY 2010-11 stood at $643.48 million compared to $417.99 million during the same period of the last fiscal, says the Export Promotion Bureau (EPB). Bangladesh earned $215.17 million by exporting raw jute during the period as against $112.18 million over the same period of the 2010 fiscal year, according to EPB estimates. EPB vice chairman Jalaluddin Ahmad said, "We see a bright future of jute product following the recent ban on plastic use in European countries". The demand of jute product has increased more than in the past, he added. Mr. Ahmed said the government has directed state-owned banks to disburse loans to both private and public sector jute mills so that middlemen cannot manipulate the market. "We don't want to export raw jute. Rather, we want to add value to it in order to create local job opportunities," the EPB vice chairman told the FE. According to Bangladesh Jute Mills Corporation (BJMC), export price of jute goods and raw jute rose by around 35 per cent this fiscal year. "BJMC's export in July-January period is already 160,000 tonnes while it was only 80,000 tonnes last year," said Samsul Haque, a director of the state-owned BJMC. BGMC, which is operating 16 jute mills, is on track to become a profitable concern. A total of 12 jute mills are running profitably while the rest are on course to make profits soon, Mr. Haque said. Meanwhile, the government has allocated Tk 8.0 billion to the BJMC to buy raw jute, the official said. Some 16 BJMC mills now produce 550 tonnes of jute goods a day, which could reach more than 700 tonnes if uninterrupted power supply is ensured, Mr. Haque said. Bangladesh Jute Mills Association (BJMA) secretary Abdul Barik Khan told the FE that they were forced to close down 13 BJMA jute mills out of 92 due to lack of fund and power crisis. He, however, said many of them are running partially. He also said, "BJMA mills can produce around 14,000 tonnes per month despite having production capacity of 22,000 tonnes". Mr. Khan said he is hopeful about the sector but extra care is required from the government side to bring back the past glory of the jute industry.