SOHEL PARVEZ

The government has restricted the export of raw jute, making shipments conditional, in a bid to increase the supply of the natural fibre in the domestic market and curb rising prices.

The move has drawn mixed reactions from traders with some saying it will hurt farmers and is unlikely to achieve its intended results, while others argue that it is the right decision to safeguard national interest.

In a circular issued on 8 September, the commerce ministry stated that exports of jute, a cash crop cultivated by tens of thousands of farmers, particularly in the central districts, would require prior approval.

“Exporters will have to apply to us, and they will be allowed to ship only the approved quantity of jute,” said a senior commerce ministry official.

The move comes amid a 6.5 per cent year-on-year decline in production to 89.5 lakh bales, which has driven up prices of raw jute and raised concerns among millers, even as exports have been recovering in recent months.

Currently, medium quality jute is traded at Tk 3,600-3,700 per maund, up from Tk 2,800-3,200 a year ago, according to Arzu Rahman Bhuiyan, a raw jute exporter.

The commerce ministry official said the restriction of shipments has been slapped based on recommendations from the textiles and jute ministry.

Contacted, Textiles and Jute Secretary Md Abdur Rauf said the government aims to increase the domestic supply of raw jute and boost production of jute bags.

“We want to enhance the use of jute bags as part of the implementation of the mandatory packaging law. Rice millers have agreed to use the jute bags for packaging the staple,” he said, adding that rice mills require nearly 80 crore pieces of jute bags for packaging.

Stating that farmers have already harvested 90 percent of their jute crop, the secretary said, “We will revise our decision if prices fall drastically.”