Published:  12:49 AM, 12 February 2019

Low demand causes drastic jute export fall

Export earnings from jute and jute goods sector fell by 24.66%  during first half of the current fiscal year over corresponding period of the last fiscal, according to latest Export Promotion Bureau (EPB) data.

"Low foreign demand is the key reason of falling jute and jute goods export earnings this year," said one of the jute goods exporters , HM Rezaul Karim, Managing Director of BICO Jute Fibres.  Earnings from raw jute, jute yarn and twine, Jute sacks and bags respectively fell by 17.47%, 26.72% and 40.27% over corresponding period.

Rezaul Karim also claimed that there was shortage of raw jutes in mills this year. "Even the price was so high during peak season. We could not store enough raw jutes due to price hike. That was another reason behind this drastic fall in jute export," he pointed out. According to sources, India is a giant jute import from  Bangladesh. But this year, most of the Indian importers declined to import jute from Bangladesh.

"It was another nightmare for us(Jute and jute goods exporter). Most of the exporters depended on India as it has been a big marketplace," said another jute exporter, Managing Director of Fibres International Ltd Syed Mohammad Anisuzzaman.Jute and jute goods strategic export target for  July-January period was 623.37 million when the sector brought only 498.66 million.

Export target from the sector for the current fiscal year is 1.08 billion. So the sector has to bring more 586.34 million to reach the export target of current fiscal. 

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