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Govt set to allow partial jute export to retain markets

Syful Islam | December 10, 2015 00:00:00


The government is set to allow raw jute export on case-to-case basis despite the existing ban on its export in order to retain the foreign markets, dependent on Bangladeshi golden fibre, officials said.

The Department of Jute (DoJ) has already collected data from the raw jute exporters to perceive how much of their export order has become stuck following slapping of the indefinite ban on raw jute export.

The ban was first imposed for one month on November 03, which was later extended to indefinite period, citing the government's effort to enforce mandatory jute packaging act.

"We have taken the decision of allowing jute export on case-to-case basis following the Prime Minister's directive," state minister for textile and jute Mirza Azam told the FE.

"Wednesday is the last day of the three-day deadline, given to the jute exporters to submit their papers. DoJ has collected the necessary documents, and we will take decision in this regard soon," he added.

Mr Azam said many foreign industries are dependent on Bangladeshi raw jute. They will be seriously affected, if fail to get jute from here. He cited the example of Japan, where interior decoration of expensive cars is being done with Bangladeshi raw jute.    

"We don't want to lose those markets. We have to make sure that none is affected by our decision," he noted.

Exporters said presently some 20,000 bales of raw jute are being stuck in different ports of the country following imposition of the export ban.  

On an average Bangladesh annually exports 2.1 million bales of raw jute, out of its total production of 5.8 million bales. Some 3.8 million bales of jute are being consumed locally.

India, Pakistan, and China are major importers of Bangladeshi raw jute. Besides, some European nations, the United States, Japan, Russia and the United Arab Emirates also import raw jute from here.

Sources said recently Indian High Commission in Dhaka in a letter to the Ministry of Commerce (MoC) and the Ministry of Textile and Jute (MoTJ) requested to lift the ban on raw jute export, as their mills are being affected on the decision.

A senior official at MoC told the FE that the ministry will ask MoTJ within a day or two to justify the reasons of slapping an indefinite ban on export of raw jute. He also said MoTJ did not consult with MoC before slapping the ban.

Commerce Secretary Hedayetullah Al Mamoon told the FE on Wednesday that he has already discussed the issue with the MoTJ high-ups.

"We had talks on the issue. Now the jute ministry can explain why the ban was imposed," he said.

Sources said the issue was raised for discussion in the regular cabinet meeting on Monday. In the meeting the commerce secretary explained possible impacts of the ban on the country's jute sector in the long run.

MoC additional secretary Manoj Kumar Roy told the FE that ultimately the country's jute sector will suffer as a whole, if such bans are slapped frequently.

He said jute growers, failing to get reasonable prices of their produce due to export ban, will lose interest, and other people involved with the sector will also face troubles.

Besides, the countries that import raw jute from here will lose confidence on Bangladesh, and ultimately opt for other fibres to meet their needs.

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