Home ›› 07 Jan 2022 ›› Front
Bangladesh Jute Spinners Association has demanded the government’s protection from a syndicate allegedly responsible for artificially hiking raw jute prices, and threatened to shut down production in mills from February 1 unless the issue is resolved.
The association – in a letter signed by its Chairman Sheikh Nasir Uddin – also set per maund of BTC raw jute prices at Tk 3,200, and SMR raw jute prices at Tk 2,700. These prices will come into effect from January 9.
BJSA in a meeting on Thursday urged all its members to follow this decision. This move came after raw jute prices went up by Tk 600 – Tk 800 within just a week in local markets. Jute millers have been claiming that a certain quarter of dishonest people are hiking the prices.
“To protect the jute sector, all members are requested to please purchase raw jute within the set prices. If any miller violates this decision, the association will take action as per the BJSA constitution,” says the letter.
It further says that the association will provide documents, and hold meetings with government authorities to present evidence indicating that the jute sector is in the grip of a syndicate. The BJSA also urged the government to enforce the jute law.
A maund of raw jute currently costs Tk 3,700 – Tk 3,800 in the local market, which was Tk 2,800-3,000 in the middle of December last year.
Industry insiders claimed that the syndicate increased raw jute prices again this year after an unofficial announcement claimed that India would import 1,00,000 bales from Bangladesh.
Though the government has banned jute trade without a licence, and made it illegal to stock over 1,000 maunds of jute for over a month to protect millers from any syndicate, these measures only exist on paper, industry leaders told The Business Post.
They added that the high prices of raw jute have increased their production costs, and this in turn has caused their export value and volume to drop in the previous fiscal.
BJSA Chairman and AKIJ Jute Mills’ Managing Director Sheikh Nasir Uddin said, “Currently, unlicensed people, including shopkeepers, are trading raw jute, and hoarding the fibre for months at a time.
“They are creating an artificial crisis, causing prices to soar. The government is not taking any visible measures to resolve this issue. “We usually export around two lakh tonnes of jute yarn to Turkey annually, but this figure has dropped by almost 50 per cent last FY.”
He continued, “Not only in Turkey, but our export volume has dropped all over the world, and we have been forced to cut our production. Under the circumstances, we have decided to shut production from February 1 if the government fails to stabilise the raw jute market.”
The Bangladesh Jute Mills Association (BJMA), another apex body of the jute sector, has decided to send a letter to Prime Minister Sheikh Hasina expressing their concerns about the price hike of raw jute, sources said.
In that letter, which could be sent next Sunday, the BJMA will seek the prime minister’s intervention on this matter. This association has also spoken with the jute ministry regarding the skyrocketing price of raw jute.
BJMA’s Secretary General A Barik Khan said, “Raw jute prices are going up day by day despite the existence of surplus raw jute in the country. So, we have decided to send a letter to the prime minister and seek her intervention to protect this sector.”
He stated that because of the price hikes, around 60 jute mills will have to stop or reduce production.
Esrat Jahan Chowdhury, Director of the Bangladesh Jute Goods Exporters Association, said, “If we fail to reduce our production costs, our buyers will focus on alternative jute. This has already happened, and some of our buyers have reduced jute imports from Bangladesh.”
