BJMA seeks measures to ensure reasonable price of raw jute

The country's private jute millers have urged the authorities concerned to take necessary measures, including the imposition of a duty on uncut low-grade raw jute, to ensure reasonable prices of raw jute in the local market.

They also demanded the authorities to instruct the dealers not to stock more than 1,000 maunds (40 kg per maund) of raw jute a month.

Bangladesh Jute Mills Association (BJMA) put forward the demands in a letter to the Ministry Textiles and Jute on Sunday.

Other demands included using seaport for exporting raw jute, imposing restrictions on the sales of wet raw jute and not allow any trader without a licence.

The association said the price of raw jute has increased by Tk 150-200 per maund, pushing up the production cost. As a result, they were not getting export orders at higher prices, it added.

When contacted, Abdul Barik Khan, secretary-general of the BJMA, alleged that a section of dishonest traders and middlemen have stocked raw jute to make an artificial crisis in the local market.

Besides, he said, they came to know that a significant volume of raw jute is being exported in the name of low-grade uncut Bangla Tossa Rejection (BTR) and Bangla White Rejection (BWR).

Only 3.0 to 5.0 percent of the total production of raw jute is low-graded, he added.

A section of traders is exporting high-quality raw jute in the bundle of uncut raw jute, he alleged, adding that it is another reason for the scarcity of raw jute in the local market.

If such shortage continues for a long time, it would be difficult to run many mills smoothly, he said.

Mr. Barik, however, pointed out that the government withdrew the restriction on the export of uncut low-grade raw jute in the middle of last year, following a writ petition by the traders.

The jute ministry banned the export of the BTR and BWR in 2018 following requests of the jute millers, he mentioned.

Some 7.0 to 8.0 million bales of raw jute are produced in the country each year.