Short, long-term plans can revive golden days of jute: Spinners
Monday, 29 March 2010
FE Report
The country's jute spinners Sunday urged the government to take up short and long-term plans immediately to revive the golden days of the fibre.
The plea comes as the natural fibre is currently being sold at all-time high of Tk 2,900 per maund.
Jute and jute goods were the country's largest export items when Bangladesh became independent in 1971. Apparel items stole that honour in early 1990s, leaving jute to a distant second position.
Backed by the rapid growth of shrimp exports to the US and Europe, frozen food outperformed jute early this decade.
But in February this year, jute reclaimed its honour as the second largest export item after nearly a decade thanks to the resumption of the use of bio-degradable natural fibre in the West.
The Golden Fibre hit the jackpot, with the export of raw jute growing more than 38 per cent in the first seven months of the fiscal year to US$111.22 million and jute goods 49 per cent to $229.6 million.
Overseas sales have continued to grow as Bangladesh shipped 0.23 million tonnes of jute yarn to fetch Tk11.35 billion in the first eight months of 2009-10, up by 13.46 per cent in exports and 15 per cent in sales compared to the same period a year ago.
Spinners, however, said jute yarn production cost has risen as the price of raw jute broke all-time record catapulted by nagging power crisis in the country.
"As a result, the jute millers are incurring financial loss," said Ahmed Hossain, president of Bangladesh Jute Spinners Association, urging the government to double the amount of subsidy on exports from the current 10 per cent.
Mr Hossain was speaking at the 31st annual general meeting of the association in the city.
He said the country's raw jute market is volatile due to inadequate supply. "As a result, the millers are struggling to procure raw jute."
He said currently the price of high-quality raw jute was Tk 2,900 per maund, but the farmers were not getting the price as they had already sold their harvest.
"A cartel of dishonest businessmen is reaping the most benefit. Many jute mills will be shut down due to inadequate supply of raw jute if the current situation prevails," the BJSA president said.
He said increased use of natural fibre in the West has augmented the demand for raw jute in the mills. "But a group of unscrupulous traders are controlling the market through a syndicate to reap windfall gains, which has destabilised the raw jute market."
He requested the government to supply quality seeds in the local market, as farmers had long been complaining about the quality of imported Indian seeds.
Bangladesh imports over 3,000 tonnes of seed from the next-door neighbour annually out of the total demand of around 4,000 to 5,000 tonnes.
The association also urged the government to implement last year's recommendations of the advisory committee on jute, which include fixing interest rate for bank loans for facilitating exports at 7.0 per cent and making use of jute products mandatory at local levels.
The country's jute spinners Sunday urged the government to take up short and long-term plans immediately to revive the golden days of the fibre.
The plea comes as the natural fibre is currently being sold at all-time high of Tk 2,900 per maund.
Jute and jute goods were the country's largest export items when Bangladesh became independent in 1971. Apparel items stole that honour in early 1990s, leaving jute to a distant second position.
Backed by the rapid growth of shrimp exports to the US and Europe, frozen food outperformed jute early this decade.
But in February this year, jute reclaimed its honour as the second largest export item after nearly a decade thanks to the resumption of the use of bio-degradable natural fibre in the West.
The Golden Fibre hit the jackpot, with the export of raw jute growing more than 38 per cent in the first seven months of the fiscal year to US$111.22 million and jute goods 49 per cent to $229.6 million.
Overseas sales have continued to grow as Bangladesh shipped 0.23 million tonnes of jute yarn to fetch Tk11.35 billion in the first eight months of 2009-10, up by 13.46 per cent in exports and 15 per cent in sales compared to the same period a year ago.
Spinners, however, said jute yarn production cost has risen as the price of raw jute broke all-time record catapulted by nagging power crisis in the country.
"As a result, the jute millers are incurring financial loss," said Ahmed Hossain, president of Bangladesh Jute Spinners Association, urging the government to double the amount of subsidy on exports from the current 10 per cent.
Mr Hossain was speaking at the 31st annual general meeting of the association in the city.
He said the country's raw jute market is volatile due to inadequate supply. "As a result, the millers are struggling to procure raw jute."
He said currently the price of high-quality raw jute was Tk 2,900 per maund, but the farmers were not getting the price as they had already sold their harvest.
"A cartel of dishonest businessmen is reaping the most benefit. Many jute mills will be shut down due to inadequate supply of raw jute if the current situation prevails," the BJSA president said.
He said increased use of natural fibre in the West has augmented the demand for raw jute in the mills. "But a group of unscrupulous traders are controlling the market through a syndicate to reap windfall gains, which has destabilised the raw jute market."
He requested the government to supply quality seeds in the local market, as farmers had long been complaining about the quality of imported Indian seeds.
Bangladesh imports over 3,000 tonnes of seed from the next-door neighbour annually out of the total demand of around 4,000 to 5,000 tonnes.
The association also urged the government to implement last year's recommendations of the advisory committee on jute, which include fixing interest rate for bank loans for facilitating exports at 7.0 per cent and making use of jute products mandatory at local levels.