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Falling acreage may affect jute yield

Sohel Parvez
Jute cultivation area has fallen this year as some farmers switched to other crops due to the low prices of the natural fibre last fiscal year.
Drought in some areas — southwest and western districts --is another reason behind the falling acreage, which has created fears of a fall in production in the current fiscal year.
Acreage under jute cultivation fell 8 percent to 7 lakh hectares in the current season from the previous season's 7.6 lakh hectares, said Md Abdul Latif, director general of the Department of Agricultural Extension.
However, production is unlikely to be affected, he said. Jute production stood at 80 lakh bales in 2011-12, according to Bangladesh Bureau of Statistics.
"Inadequate monsoon affected jute plant's growth in some areas. Later, rainfall did some recovery for the plants. Yield so far has been good."
Jute traders and millers, however, said output may drop due to a lack of monsoon during the growing stages of jute plants.
Increased water level in the fields near river banks may also affect jute production, said Mahfuzul Haque, chairman of Bangladesh Jute Association.
The concerns came as newly harvested jute started arriving in the market while best quality jutes are trading at high prices amid absence of old jute of the same quality.
Newly harvested best quality jute is traded at around Tk 1,900-2,000 a maund (40 kg), said Prabir Saha, a trader at Kanaipur in Faridpur, the main jute growing zone. Prices of old jute of the same quality stand at Tk 1,800-1,900 a maund, he said.
"Farmers are very happy," he said. "But they are uncertain whether the current prices will sustain. It will depend on the government' s purchase prices."
Najmul Huq, chairman of Bangladesh Jute Mills Association, said prices may fall after the beginning of the harvesting season in full swing next month.
He said production may fall to 70 lakh bales this year because of the sluggish growth of plants.
He said the market and prices of jute would depend on exports and the volume of its carry over stocks.
In terms of volume, exports of jute goods rose. Earnings, however, fell by 13 percent to $967 million in 2011-12 from $1,114 million in the previous year due to reduced prices amid declining demand in Middle East and Africa, a major market for jute goods.
"The situation in the Middle East is one of the critical factors for exports of jute goods. If the situation improves, exports may rebound," said Huq.
Shahidul Karim, secretary of Bangladesh Jute Spinners Association, also feared that output may decline in the current fiscal year.