Bangladesh jute exports decline in July-May

02 Jul '12

2 min read

Exports of jute and jute products from Bangladesh decreased to US$ 889.45 million during July-May 2011-12, showing a dip of 11 percent compared to exports worth US$ 1 billion achieved during the corresponding period of previous fiscal, according to the Export Promotion Bureau (EPB).

The sanctions imposed by Western countries against Iran, is one of the reasons for decline in Bangladeshi jute exports, as Iran is one of the major importers of Bangladeshi raw jute and jute goods.

Until fiscal 2010-11, exports of Bangladeshi jute and jute products to Iran increased gradually. But post-sanctions, exporters are finding it difficult to realize payments as most of the banks through which the export payments were collected so far have been blacklisted.

The financial crisis in Europe, political turmoil in some Middle East countries, floods in Thailand, earthquake in Turkey and fears of global recession are also cited by exporters as the reasons for sluggish demand for Bangladeshi jute and jute items.

Growth of raw jute exports dropped by 26.51 percent in fiscal year 2011-12, which ended on June 30, compared to growth of 53 percent achieved in 2010-11, EPB data showed.

Earnings from jute yarn and twine exports increased by 7.62 percent in 2011-12, as against a rise of 54 percent observed during year ago period. Similarly, earnings from jute bags and sacks were also down by almost 50 percent, EPB said.

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