Raw jute production fall worries local millers
Saturday, 11 October 2008
S M Jahangir
The country's raw jute output has marked a significant fall this year, posing a threat to the survival of the already ailing local jute mills, the sector insiders said.
"A drastic fall in the production of raw jute has become a major cause of concern of the local jute goods manufacturers," said a private sector operator.
Referring to a provisional estimate, private jute millers said the country's raw jute output has declined by over 0.5 million bales this year from that of last year's production.
The country has grown an estimated 5.0 million bales of raw jute this year compared to the last year's production of nearly 5.6 million bales, they observed.
According to a provisional official estimate, the country's raw jute production fell short of target by nearly 15 per cent this year, sources said.
Non-availability of quality seeds, changing of the farmers' cropping pattern and scarcity of sufficient water for retting green jute plants and unfavourable weather conditions were seen responsible for the decline in the local raw jute output.
According to them, the country's total production target of raw jute was earlier fixed at 6.8 million bales for the just concluded cropping season.
Such a drastic output shortfall has already created a supply paucity of the natural fibre in the local market, jute millers claimed.
Due to the supply shortage, the prices of raw jute have marked a significant rise in the local market this year, they said.
Raw jute is now selling between Tk 1000 and Tk 1400 per maund against Tk 700 and Tk 1100 a maund in the corresponding period last year, a private jute mill operator said.
He also predicted a further rise in the prices of raw jute in the days ahead.
Also terming the current soaring prices of the raw jute 'unbearable' for jute mills, the industry operators said many of the jute goods manufacturers will hardly be able to purchase their required volume of raw materials.
Moreover, the price hike of raw jute will also push up the production costs of jute goods significantly, affecting their competitiveness in the export market, they observed.
"The overall cost of production in domestic jute mills has already gone up by around 45 per cent in the recent times due to the price hike of raw jute and fuel oils," a private jute yarn manufacture said.
The industry operators also said the local jute mills consumed around 3.2 million bales of raw jute last fiscal while the remaining volume of local output is exported. And, another 0.2 million bales of raw jute are used locally for various other purposes.
In the last financial year the country exported nearly 2.9 million bales of raw jute, official figures revealed.
If the above-mentioned volume of raw jute is exported this fiscal year, then the local jute mills would face a supply shortage of their basic raw material, a private jute mills operator said.
Similarly, the country will have to cut its raw jute exports in the current fiscal if the mills maintain their usual consumption trend, they argued.
They, however, observed that the soaring raw jute prices triggered by the prevailing supply shortfall could force many of the local mills to significantly cut their production.
The country's raw jute output has marked a significant fall this year, posing a threat to the survival of the already ailing local jute mills, the sector insiders said.
"A drastic fall in the production of raw jute has become a major cause of concern of the local jute goods manufacturers," said a private sector operator.
Referring to a provisional estimate, private jute millers said the country's raw jute output has declined by over 0.5 million bales this year from that of last year's production.
The country has grown an estimated 5.0 million bales of raw jute this year compared to the last year's production of nearly 5.6 million bales, they observed.
According to a provisional official estimate, the country's raw jute production fell short of target by nearly 15 per cent this year, sources said.
Non-availability of quality seeds, changing of the farmers' cropping pattern and scarcity of sufficient water for retting green jute plants and unfavourable weather conditions were seen responsible for the decline in the local raw jute output.
According to them, the country's total production target of raw jute was earlier fixed at 6.8 million bales for the just concluded cropping season.
Such a drastic output shortfall has already created a supply paucity of the natural fibre in the local market, jute millers claimed.
Due to the supply shortage, the prices of raw jute have marked a significant rise in the local market this year, they said.
Raw jute is now selling between Tk 1000 and Tk 1400 per maund against Tk 700 and Tk 1100 a maund in the corresponding period last year, a private jute mill operator said.
He also predicted a further rise in the prices of raw jute in the days ahead.
Also terming the current soaring prices of the raw jute 'unbearable' for jute mills, the industry operators said many of the jute goods manufacturers will hardly be able to purchase their required volume of raw materials.
Moreover, the price hike of raw jute will also push up the production costs of jute goods significantly, affecting their competitiveness in the export market, they observed.
"The overall cost of production in domestic jute mills has already gone up by around 45 per cent in the recent times due to the price hike of raw jute and fuel oils," a private jute yarn manufacture said.
The industry operators also said the local jute mills consumed around 3.2 million bales of raw jute last fiscal while the remaining volume of local output is exported. And, another 0.2 million bales of raw jute are used locally for various other purposes.
In the last financial year the country exported nearly 2.9 million bales of raw jute, official figures revealed.
If the above-mentioned volume of raw jute is exported this fiscal year, then the local jute mills would face a supply shortage of their basic raw material, a private jute mills operator said.
Similarly, the country will have to cut its raw jute exports in the current fiscal if the mills maintain their usual consumption trend, they argued.
They, however, observed that the soaring raw jute prices triggered by the prevailing supply shortfall could force many of the local mills to significantly cut their production.