Kazi Azizul Islam
Bangladesh’s jute growers and traders expect high profits this year because, due to the high demand in the international market, the prices of raw jute have increased by at least 30 per cent at the beginning of the season. As production of jute in India has dipped and production of jute goods increased in India and elsewhere, exports of raw jute from Bangladesh are expected to get a boost and the optimistic traders have begun procuring jute at high prices from the very beginning of the season. According to the regular monitoring report of the Bangladesh Jute Association, per maund (37.3 kilogram) of fine grade (hard district Faridpur) variety of raw jute was traded at Tk 1,300 in the past one week. The price was at least Tk 300 more than that of last year. Merchants in Daulatpur and Narayanganj, the two major hubs of the bulk trade of raw jute, said that despite high prices the buyers are eagerly buying up all the jute that they can get because they expect export prices to keep increasing. The average price of medium grade raw jute produced in the districts of North Bengal, now up by at least Tk 200 per maund, was found to be Tk 1,100, while that of C grade, Jessore variety, was about Tk 950. ‘Prediction of further rise of raw jute prices in the international market is inspiring the buyers to procure raw jute at higher prices,’ said Rezaul Karim, president of the Bangladesh Jute Association that is mainly comprised of raw jute exporters and bulk traders. Industry sources said that global importers of raw jute, who need to buy more jute, are offering higher prices as they have learnt that the prices of jute in the local markets of Bangladesh have gone up. Traders said the local market is also reacting to the reported decline in raw jute production in India while production of jute goods has gone up. The amount of the raw jute produced this year (July-June) in India is expected to be substantially lower than earlier years due to floods in several jute-growing areas and less land used to grow jute. The Indian Jute Mills Association has estimated that Indians would have to import five lakh bales (180 kilogram per bale) of raw jute more from Bangladesh to feed India’s growing jute goods manufacturing sector. The estimated import is more than double of last year’s Pakistan and India are the two top markets for Bangladesh’s raw jute. Bangladesh exported more than 7 lakh tonnes of raw jute to the global market last year with more than two-thirds of the shipments going to India and Pakistan. China, Brazil, Spain and Thailand are Bangladesh’s major markets for raw jute.
Bangladesh’s jute growers and traders expect high profits this year because, due to the high demand in the international market, the prices of raw jute have increased by at least 30 per cent at the beginning of the season. As production of jute in India has dipped and production of jute goods increased in India and elsewhere, exports of raw jute from Bangladesh are expected to get a boost and the optimistic traders have begun procuring jute at high prices from the very beginning of the season. According to the regular monitoring report of the Bangladesh Jute Association, per maund (37.3 kilogram) of fine grade (hard district Faridpur) variety of raw jute was traded at Tk 1,300 in the past one week. The price was at least Tk 300 more than that of last year. Merchants in Daulatpur and Narayanganj, the two major hubs of the bulk trade of raw jute, said that despite high prices the buyers are eagerly buying up all the jute that they can get because they expect export prices to keep increasing. The average price of medium grade raw jute produced in the districts of North Bengal, now up by at least Tk 200 per maund, was found to be Tk 1,100, while that of C grade, Jessore variety, was about Tk 950. ‘Prediction of further rise of raw jute prices in the international market is inspiring the buyers to procure raw jute at higher prices,’ said Rezaul Karim, president of the Bangladesh Jute Association that is mainly comprised of raw jute exporters and bulk traders. Industry sources said that global importers of raw jute, who need to buy more jute, are offering higher prices as they have learnt that the prices of jute in the local markets of Bangladesh have gone up. Traders said the local market is also reacting to the reported decline in raw jute production in India while production of jute goods has gone up. The amount of the raw jute produced this year (July-June) in India is expected to be substantially lower than earlier years due to floods in several jute-growing areas and less land used to grow jute. The Indian Jute Mills Association has estimated that Indians would have to import five lakh bales (180 kilogram per bale) of raw jute more from Bangladesh to feed India’s growing jute goods manufacturing sector. The estimated import is more than double of last year’s Pakistan and India are the two top markets for Bangladesh’s raw jute. Bangladesh exported more than 7 lakh tonnes of raw jute to the global market last year with more than two-thirds of the shipments going to India and Pakistan. China, Brazil, Spain and Thailand are Bangladesh’s major markets for raw jute.
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