Smiles of jute farmers are fading as initial high prices are falling fast due to lack of sufficient buyers.

Jute traders are watching the market while Bangladesh Jute Mills Corporation (BJMC) is yet to open its purchasing centres for want of a decision, circles in jute business said.

After several years' slump, jute marketing season began this year with prices hovering around round Tk 800 for Tosa and Tk 850 for local varieties. But in two weeks, the prices plummeted to Tk 550 and Tk 650 respectively in different markets in Nilphamari district, farmers and traders said.

District Jute Inspector Arindom Kumar Dhor told this correspondent on Saturday that two BJMC jute mills -- Rajshahi Jute Mills, Peoples Jute Millsprivately owned UMC Jute Mills, jute exporters BJ Singhenia and Julu Trading and 350 jute balers purchased jute from markets in the district in previous years. But only UMC Jute Mills and a handful bailers have started purchasing small quantities this year.

Big buyers are yet to start buying while BJMC is watching the market. If high prices continue, many of the big buyers will hesitate to go for purchase right now, traders said.

Traders said 2000-5000 maunds of jute are brought to rural markets on every market day in the district. The big markets are Baburhat and Suti Bari Hat in Dimla, Bosunia Hat and Ambari Hat in Domar, Golna Hat and Tengonmari Hat in Joldhaka, Dhelapirer Hat in Saidpur, Vobaniganj and Ramgan Hat in Nilphamari Sadar upazila.

Taking the scope of dull buying, organised syndicates will smuggle jute across the border, they said.

Agents of Indian jute buyers have already made their presence in areas close to the border, they claimed while talking to this correspondent. They are also waiting to see the prices come down further.

In the last couple of years, cultivation of the golden fibre decreased

alarmingly in northern districts as farmers did not get fair prices. Farmers became interested again this year when the prices rose to around Tk 1000 per maund at the fag end of last year (2004), the sources said.

But they had to pay heavily for it. Farmers had to buy jute seeds at prices as high as Tk 1000 per kilogram in the sowing season. Moreover, many a farmers were deceived by purchasing low quality seeds smuggled from across the border. Many farmers said they had to sow seeds twice or thrice on fields this year.

Inferior quality seeds was a great hindrance to attaining this year's production target. According to the

District Agriculture Extension Department (DAE), the target for jute cultivation was 10,620 hectares in six upazilas of Nilphamari district to get an yield of 1,11,740 bales.

But only 7,932 hectares could be brought under cultivation and the yield would be around 84,740 bales, . The target could not be fulfilled as Bangladesh Agriculture Development Corporation (BADC) could supply only 4.5 tonnes of seeds against a demand for 100 tonnes in the district, DAE sources said.

"But we are satisfied despite failing the target as farmers are happy at the reasonable price this year", one source said.

Ramzan Ali, a farmer at Goya

Bari village in Dimla upazila said he got 16 maunds of jute from two bighas of land. He spent about Tk 5000 and is expecting a profit of Tk 7000 from sale of jute and sticks.

Sources said that seven jute mills have been set up in Indian districts bordering Bangladesh in recent times, in addition to 59 set up earlier. Of the seven, one is in Kunchbihar district across Nilphamari.

An experienced jute trader in the district, Noor Hossen, said Indian jute mills are running with jute from Bangladesh but our jute mills are being closed one after another though we produce the best quality jute.