Govt permits 12 firms to export 2,984 tonnes of raw jute

The Ministry of Commerce has granted approval to 12 local companies to export a total of 2,984 tonnes of raw jute.

It announced the approval in a recent circular.

According to the circular, the ministry approved the exports on September 30, based on applications submitted through the Bangladesh Jute Association.

The firms approved for export are International Jute Traders (208 tonnes), Popular Jute Exchange (822 tonnes), Sartaj Trade International (366 tonnes), Rashmi Kabir (104 tonnes), Janani Enterprise (52 tonnes), Sharif Trade Village (26 tonnes), The World Jute Garden (25 tonnes), Ideal Trade International (192 tonnes), RS Traders (130 tonnes), Bulbul Traders (25 tonnes), Juteb Impex (130 tonnes), and NS Jute Bailing (104 tonnes).

Notably, the government recently brought raw jute under the list of conditionally exportable products.

As per the Export Policy 2024-27, exporters must now obtain prior approval from the commerce ministry to export raw jute.

Previously, raw jute was not included in the list.

Meanwhile, the government is permitting raw jute export at a time when its price has skyrocketed in the local market, putting local factories in peril, say insiders.

The Bangladesh Jute Spinners Association (BJSA) and Bangladesh Jute Mills Association (BJMA) recently urged the government to impose a total ban on raw jute export for this year.

A report published in The Financial Express on October 11 said even with the government's recent restrictions on the export of raw jute, the commodity had almost disappeared from local markets, leaving mills struggling to find supply.

After prices surged sharply in August and September, the government imposed limits on raw jute exports following the main trading season.

Farmers had previously received fair prices - Tk 3,400-3,700 per maund from August to mid-September - but rates have now soared to Tk 4,300-4,500 per maund, according to the Directorate of Jute (DoJ).

The BJSA held an emergency meeting last week with the BJMA to discuss ways to tackle the raw jute crisis, unstable prices, and limited supply. BJSA Chairman Tapas Pramanik told The Financial Express that there was unhealthy competition for hoarding jute.

"Genuine mill owners cannot buy enough jute to meet their production needs. This instability has thrown the industry into deep trouble.

"If mills remain without jute, millions of workers will lose jobs, production will halt, and Bangladesh will lose foreign exchange earnings," he said.

BJMA Chairman Md Abul Hossain said, "The jute sector needs infrastructure improvement and corruption control. The government should form a modern data centre and a dedicated jute commission, similar to those in neighbouring countries."

He also urged the government to set a minimum price for raw jute, as was done for other crops, and ensure the prices matched production costs.

"Otherwise, it will be difficult to survive in the export market," he warned.

Data from the Export Promotion Bureau (EPB) shows jute and jute goods exports have been declining since FY21.

Export earnings from the sector were $1.16 billion in FY21, $1.13 billion in FY22, $911.51 million in FY23, $855.23 million in FY24, and $820.16 million in FY25.

tonmoy.wardad@gmail.com