Editorial
Jute sector's new prospects
Policy backing needed to spur growth
IT augurs well for shoring up the jute sector that needs to find a strong footing. Export of raw jute and jute goods registered an increase during July-September quarter against the recession-hit backdrop of the world economy. Compared with figures for the corresponding quarter of last fiscal, export of raw jute this time marked a significant growth by 28 percent. However, insofar as the export of jute manufactures went, the growth is rather modest -- 5.18 percent.
This overall growth in export earning has helped jute farmers receive remunerative prices this year. This is a good news but the peasants maybe enthused to produce more jute next year, something that policy makers would do well to bear in mind and cater for in the future.
The increase in exports signals a rise in international demand for eco-friendly products amidst concerns over impacts of climate change. While there is a positive message to read into such a development, this has given rise to certain concerns that need to be addressed in order that we can maximise the benefits from the current trend.
With India and China importing raw jute from Bangladesh to manufacture sacks, yarns and bags for international market the local jute industries have an issue with increased raw jute prices and supply constraints weighing down on their production lines. Bangladesh Jute Spinners' Association says that local jute mills could shutter down if jute supplies were not ensured. The calculus of profit obviously favours jute goods fetching $900 per tonne as against $600 through raw jute export. Realistically, we should be striking a balance between export of raw jute and that of jute goods.
There is perhaps a basis on which we could do the balancing in terms of providing policy and logistical supports to bolster the jute sector as a whole. The country produced five million bales of jute this year, of which around two million were used up by local jute mills and raw jute exporters put together. The market should have another three million bales for use, according to knowledgeable circles who are quick to add that a segment of jute traders might be into hoarding to make a quick buck.
In this context, it seems imperative for the government to conduct a survey of raw jute stocks in order that favourable equations can be worked out between export of the golden fibre and that of goods manufactured from it.
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