Low jute prices frustrate Rangpur farmers

The low prices of raw jute in the local markets of the Rangpur division have made farmers and traders frustrated.

Local sources said growers of the region are worried about whether they will be able to recover the production cost.

Farmers are incurring losses as they have to sell the produce in the local markets at Tk 2,600-2,800 per maund, which is far lower than the production cost.

Mostafizur Rahman, a farmer at Moyenpur village under Mitahpukur upazila of the district, said he hoped to make profits by cultivating jute this year.

He sold a maund of jute at Tk 3,300 last year while the market price ranges between Tk 2,600-2,800 this year. He became hopeless as it will be tough to recoup the production cost considering the present market price.

Mostafizur cultivated jute on three bighas of land and got 17 maunds. He had to spend Tk 47,000 on production. He cultivated the same amount of land last year and got 20 maunds of jute by spending Tk 40,000 on production.

The production cost has become higher this year as the prices of agricultural inputs and labour costs have increased much.

“I have lost my interest to cultivate jute as I have to count losses,” Mostafizur noted.

Abu Bakar Siddique, 60, a farmer of Gadha village under Kishoreganj upazila of Nilphamari district, said he cultivated jute on eight bighas of land last year while it is only five bighas this year.

He got 28 maunds of produce by spending Tk 75,000 on production. He sold the produce at Tk 2,600 per maund, which is less than the production cost.

“I hoped to make profits thinking the market price would be at least Tk 3,500- 4,000 per maund this year.”

Another jute grower Insan Ali, 50, of Vhogdanga village under Kurigram Sadar upazila, said the production cost has increased much compared to last year due to the price hike of essentials.

He needed to spend more this year on carrying his jute plant bundles to a faraway place in a channel of the Dharla River to process them as there was a huge shortage of rainfall in the nearby water bodies.

Insan cultivated 10 bighas of land last year and six bighas this year. If the price ranges between Tk 3,500 and Tk 4,000 per maund, he could recoup his investment with a little profit.

Moreover, farmers have no opportunities to sell their produce directly to the state-run jute mills and corporations. They have to sell to the local middlemen in the markets at cheap prices. Farmers have not been getting fair prices for the last few years.

Jute trader Kawsar Jaman Babla at Mahiganj Bazar of Rangpur said, “The mills and agencies have not yet begun purchasing jute this year. We are buying jute from the farmers and small traders from different markets and stockpiling it in warehouses.” He said jute is very thin due to the lack of rainfall this season and that is why prices of raw jute in the markets are low.

The price may increase if the government jute mills start purchasing soon, he added.

According to the Department of Agricultural Extension (DAE) in Rangpur, some 51,627 hectares of land have been brought under jute cultivation in five districts – Rangpur, Kurigram, Gaibandha, Lalmonirhat, and Nilphamari – of the region this year while it was 56,412 hectares last year.

Additional Director of the DAE Md Emdad Hossain said the department targeted to produce 6,77,619 bales of jute initially on 58,124 hectares of land in the region this season.

The farmers later cultivated jute on 51,627 hectares of land, he said.

He also said farming is very cost-effective and eco-friendly while cultivating jute benefits farmers.

“Persistent heat waves hampered the plant’s processing badly this year. Farmers failed to extract quality fibres due to the water crisis in water bodies.”

Regional Director of Bangladesh Jute Research Institute in Rangpur Dr Abu Fazal Mollah said jute had glories in the past and significant contribution to the country’s economy.

He said the glory was lost for different reasons. “The farmers have diverted their attention to cultivating other crops. So, jute farming has decreased in the region.”

Former deputy general manager of the defunct Bangladesh Jute Corporation Jalal Ahamed said there is still a huge demand for jute in the international market.

He urged the government to buy raw jute directly from farmers in markets by setting up purchase booths of different state-run mills under Bangladesh Jute Mills Corporation.