The New Nation - Internet Edition

Syful Islam

The recently imposed ban on export of raw jute will raise the smuggling to the neighbouring country, feared businessmen saying that local jute sector will face a setback on the decision.

But, the government said the ban was imposed considering the problems both the state and privately owned mills were facing to buy raw jute for the last couple of months. Jute Secretary Ashraful Moqbul said they sought help of Ministry of Home Affairs to check jute smuggling.

Exporters said the yearly demand of raw jute to the local jute mills is 35 lakh to 38 lakh bales. But this year only 51 lakh bales of jute were produced. They apprehended that nearly a quarter of the jute will be smuggled to the neighbouring country due to the recently imposed ban on jute export.

They also said Bangladesh will lose its export market due to the ban which in the long run will put negative impact on jute sector.

Earlier in 1984 the Government imposed ban on raw jute export as the production was low due to the flood. This time the Government imposed ban after 25 years to help assist the local mills to buy jute easily.

Sources in the Department of Jute said the yearly demand of jute of the state owned mills is 8 lakh bales while the private sector mills consume another 29 lakh bales. Last year the total production of jute was 51 lakh bales. They hoped that the production may rise to 58 lakh bales this year.

Bangladesh Jute Association sources said the country exports raw jute to 25 countries of which major portion goes to China, Pakistan, Thailand, Italy, Germany and Vietnam. But, 88 per cent of the total export goes to China, Pakistan and India.

According to statistics available a total of 8.79 lakh bales of jute were exported during the July-November period of the current fiscal year, earning Tk 528.96 crore. The sector saw a record 53.86 per cent growth during July-October period despite country's total export experienced a 6.74 per cent fall that time.

Jute secretary Ashraful Moqbul said state owned mills were failing to buy jute during the last couple of months as the exporters have bought all of those from the market.

He said the sate owned mills now will get adequate jute as the ban will restrict the export. "We have sought help from ministry of home affairs to check export of raw jute. It is possible to stop export of raw jute if the ministry help us properly," he said.

Chairman of Bangladesh Jute Association Sheikh Faruk Hosen said many big exporters become bankrupt following the ban in 1984. That time businessmen were compelled to sell jute at half price. After that many of them left the business. Demand of jute came down severely resulting of many farmers to stop cultivating jute.

The situation may happen again as the government has imposed the ban on raw jute export again, he apprehended.

Former chairman of Bangladesh Jute Association Rezaul Karim termed the ban as wrong decision. He said this will put a setback on rising jute sector.

"Many businessmen will face financial loss due to the ban. Besides, foreign buyers will change their destination. If the ban remains long time, in the future none will be interested in this business," he said.

A total of 2.5 crore people are involved in jute cultivation and related business.