http://www.newstoday-bd.com/frontpage.asp?newsdate=#25783
Jute goods exports up by 49 pc
News Report
Export earnings from jute sector marks a sharp rise in the first eight months of the current fiscal as exports in jute products rose by 49.18 per cent and raw jute by 28.89 per cent following growing demand for the eco-friendly fibre in the global market. Bangladesh earned $270.68 million from jute goods export against the target of $181.44 million and $128.70 million from raw jute export against a target of $99.85 million during the period according to a data released by the Export Promotion Bureau (EPB). Export earnings from jute goods were $177.42 million and from raw jute $87.83 million during the same period of the previous fiscal, which shows 52 per cent rise in export earning from jute goods and 46 per cent from raw jute in the current fiscal.
The prime export promotion authority, EPB, fixed an export target of $282.71million for jute goods while raw jute export target was at $155.58 million for 2009-10 fiscal year. “When country”s major export sectors posted a negative export growth performance of jute sector was bright during the said period,” said a high official of commerce ministry. The performance would definitely encourage the exporters and the industry will regain its previous glory days, he hoped.
The higher demand for biodegradable fibre across the world makes a fresh comeback for the jute sector as people are now looking for eco-friendly products replacing synthetics, according to the industry insiders. “Despite the clouds of economic slowdown shipments of raw jute and jute were able to record a significant rise and that will definitely encourage us,” they added.
Meanwhile, prices of jute moved up substantially due demand hike from domestic and overseas markets, according to the jute millers. They also said these developments have also helped well for the jute farmers, who have received good prices for their jute produce in the current season. “Prospect of Bangladeshi sector seems to be bright as developed countries have started imposing ban on using polythene shopping bags,” they added.
Industry insiders said the country”s yearly jute production is near about 10 lakh tonne. But to grab the global demand it would require more or less one or two lakh tonne raw jute. “So we should concentrate on more jute production to meet the additional export demand, they added. “It is true that demand for diversified and value added jute products are growing in the international market as well as also on the domestic market,” told Md Humayun Kabir, CEO of Beximco Jute Division to The News Today on Thursday. He said many countries have imposed ban on polythene use in a bid to keep ecological balance and as well as restore the soil construction.
Besides, most of the global cereals producing countries are using jute-sacking bags instead of synthetics bags to preserve food grains. “We are the quality jute producing nation having good reputation since long so that these countries are giving priority to Bangladesh to outsource their demand,” he added. He said: “The demand might increase more or less 10 per cent from the existing level. So, to cater such demand we have to increase jute production immediately.”
Australia, Canada, USA, Belgium, India, Indonesia, Thailand, China, Pakistan and Philippines are showing keen interest for jute bags in the local markets.
Many of the importers of those countries have contacted to the respective embassies and high commissions of Bangladesh expressing their interest to import jute bags. “We are receiving huge enquiries regarding jute bag supply from these countries,” said industry insiders.
But we are in doubt whether we will be able to supply jute bags according to their demand due to demand and supply mismatch of raw jute, they added.
While talking to The News Today president of Bangladesh Jute Goods Association Kazi Syedul Alam Babul said demand for jute goods, especially jute bags, is in high demand in the recent years. “We are receiving substantial quantity of buying orders for value added jute goods. But we are refusing orders due to lack of capacity,” he said. He said jute goods producers are getting good prices and the sector became feasible after long time.
Currently Bangladesh exports over thousand types of jute goods as the local manufacturers could develop diversified products for different uses. Many exporters said demand for the golden fibre in India, Pakistan and China is a catalyst to export growth, which they said helped jute farmers receive well prices this year. Export price of raw jute is around Tk 13,000 a tonne, but its price becomes Tk 35,000 when it is converted to sacks, said millers.
Bangladesh exports jute goods over 85 countries including Turkey, Iran and Belgium, Canada, Japan, EU and the United States. It also exports raw jute to 59 countries including Brazil, Vietnam Thailand, China, Germany, India, Pakistan, Spain, and the USA and UK. In the fiscal year 2008-09 the country”s jute goods export was recorded at $269.25 million and raw jute export at $148.17million.
