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Bangladesh bans raw jute exports for a month
Nov '15
Bangladesh has imposed a month-long ban on raw jute export aiming to make the implementation of the Mandatory Use of Jute Product Labeling Law (MJPL) 2010 a success, according to newspaper reports.

The ban has been slapped to increase supply of the fibre for local jute bag and sack-makers, an official at the Ministry of Textile and Jute (MoTJ) said.

Bangladesh Jute Mills Corporation (BJMC), Bangladesh Jute Spinners Association (BJSA) and Bangladesh Jute Mills Association (BJMA) hailed the government decision.

BJSA chairman Ahmad Hossain said the decision is praiseworthy but it should have been taken one and a half month back which could benefit the spinners who use more than 3.6 million bales of raw jute.

But jute exporters said that the sudden decision of banning export of raw jute would hurt them because Pakistani, Nepali and some indian mills depend on Bangladeshi jute.

The decision was taken on November 1 by the MoTJ under the Sections 4 and 13 of the Jute Ordinance 1962, he said.

The ban will remain effective from November 03 to December 02, he said.

The official said from the beginning of this jute season, price of the golden fibre was higher in the domestic market mainly due to higher demand in both local and global markets.

Heavy rain and flood in July-September period, the jute-growing season, also caused a yield loss which led to rise in the prices, he said.

"Apart from formal export, many traders allegedly hoarded a huge volume of raw jute for which the jute mills were not getting jute as per their requirements," he said.

He said for a smooth supply of raw jute for the millers, who are working hand in hand to implement the MJPL, the government imposed the ban for one month.

Mobile courts will also be active against the traders involved in illegal stocking, he said.

Director General Department of Jute (DoJ) Muazzem Hussain said his department has started drives against hoarders.

According to the DoJ, Bangladesh's demand for raw jute is now 7.5 million bales of which jute spinners use the highest 3.6 million bales while the BJMC and the BJMA need 1.2 million bales each while raw jute export stands at more than 1.5 million bales. (SH)

Fibre2Fashion News Desk – India

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