Scarcity & hike in costs, pushes jute mills to closure

19 May '10

2 min read

According to experts from the industry, owing to scarce supply and unusual hike in the prices of raw jute, not less than 25 private mills have already ceased operations, while many of them are on the verge of shutting down.

A private jute mill owner stated that, a sharp fall in the supply of raw jute accompanied by rising prices, is severely driving the country's domestic jute industry to the edge.

Over the past few months, domestic jute mills have been facing acute scarcity of raw jute supply, said Fazlur Rahman, Executive Director of a jute manufacturing unit.

Rahman, also the Ex-Vice President of Private Sector Consultative Board of the International Jute Study Group, informed that, dearth in supply has exorbitantly hiked the prices of raw jute in the market, thereby, causing the production costs of the domestic jute mills to shoot up considerably.

Currently, raw jute in domestic market is being traded between Tk 2,200-2,600 per maund, which has put the jute mill owners in a fix, as they find it difficult to pay for such excessive rates, informed sector experts.

Where these situations have compelled several jute mill owners to pull down shutters of there mills, others too have curtailed their production.

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