Bangladesh jute companies fix maximum buying price

19 Jan '22

1 min read

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The Bangladesh Jute Mills Association (BJMA), the Bangladesh Jute Spinners Association (BJSA) and the Bangladesh Jute Association (BJA) recently jointly decided not to buy natural fibre for more than Tk 3,000 per maund (37 kg) from January 20 onwards due to rising costs. The decision was taken to protect the industry, the trade organisations claimed.

Traders said the prices of raw jute recently hit Tk 3,300 to Tk 3,800 per maund, up about 26 per cent compared to that of a month ago. Raw jute prices are high as supply declined due to stockpiling by middlemen, millers said.

High prices have also led to rising production costs affecting delivery of rate of work orders.

Millers also alleged that middlemen illegally stock a major share of the raw jute, creating an artificial crisis in the market.

Foreign buyers are also seen shifting their attention away from jute products to alternative items after failing to buy the goods at their stipulated prices, they were quoted as saying by Bangla media reports.

Leaders from the trade bodies will soon submit a memorandum to the textiles and jute minister demanding mobile court operation against illegal stockpiling.

Fibre2Fashion News Desk (DS)

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