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Exports of jute bags to India witness a setback
Aug '10
Jute bag exports from Bangladesh to India witnessed a setback last month, due to a rule that India started enforcing; under which exporters are required to print the country of origin on each bag. This rule had been ignored since past eight years.

Usually, the country of origin and details of the product are printed on the carton or packaging containing jute bags. But, India has recently started banning jute sacks without 'Made in Bangladesh' label.

Labeling each bag with the name of the country raises the production cost of bags at least by 3 percent, wrote Bangladesh Jute Mills Corporation (BJMC) in a letter to the Textile and Jute Secretary. This is an impediment into the fulfillment of Bangladesh's dream of bringing the lost glory of the golden fibre back, stated BJMC officials.

Such kind of labeling on jute bags will curtail Indian businessmen who re-export un-labeled imported Bangladeshi jute bags gaining a state subsidy. Last year, India imported only around 1.75 lakh bales of jute bags from Bangladesh, out of 5 lakh bales Bangladesh had exported, said BJMC officials.

The country had garnered $540 million from these exports last fiscal, revealed the Export Promotion Bureau. A statutory order released by the Textile Ministry of India in 2002, required the print of the country of origin on each imported jute bag, as per the BJMC letter to the jute ministry.

But the aforesaid order was never imposed, as it hikes the cost of production and so far, India was never strict, keeping in mind the rising demand of these bags, informed an industry expert.

Between April 2009 and May 2010, imports of jute goods from Bangladesh and Nepal in to India went up by almost 60 percent. Practically everyday, Bangladesh exported about 100 trucks of jute bags to India, but the figures came down to merely 5-7 trucks, most the mandatory imposition of the ruling.

Fibre2Fashion News Desk - India

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