Raw jute exports from Khulna decline by 50%

Jute sales have seen a steep decline in Khulna markets this year while compared to last year, its exports have decreased by 50 per cent.

However, the traders are expectant that the sales will pick up soon.

Directorate General of Jute, Khulna sources said jute is being exported to India, Pakistan, Nepal, China, Brazil, UK, Djibouti, Vietnam, Austria, Spain, Germany, Mexico, USA, Malaysia, France, Japan, Korea, Turkey, Indonesia and Belgium via ships through Mongla Port.

In the first six months of the current financial year, 14,750 bales of jute worth Tk 19.22 crore were exported. In FY 2021-22, 12,000 bales of jute worth Tk 38.18 crore were exported simultaneously.

In the last half of FY22 (January-June), 19,000 bales of jute worth Tk 15.33 crore were exported.

This correspondent found that exports declined in 2020 due to the pandemic. In 2021, jute prices increased alongside its demand in the domestic market. However, the production was low that year due

to floods.

According to traders, jute exports declined further due to the global economic recession and the Russia and Ukraine war. The increased price of dollars in the importer countries is also another reason for the export reduction.

Jute exporters of the district are now trying to make a living from only selling it to the local jute mills.

Khulna city’s Daulatpur Market jute exporter Sheikh Kaushar Ali said due to the dollar crisis, importers from Pakistan are not able to buy jute as per demand.

“Markets in China and Turkey have also contracted. The war between Ukraine and Russia has caused a decline in export trade. But the Indian market is doing well,” he said adding that depending on variety jute is being exported to India for $600-900 depending per MT.

He further said that jute is being sold to the local mills for a lower price compared to the export rate.

Bangladesh Jute Association Chairman Sheikh Syed Ali said the exporters are trying to cope with the contracted demand by selling products to the local jute mills. “The market demand for raw jute is improving gradually. I expect it will be better in the future,” he said.

Directorate General of Jute, Khulna Chief Inspector AM Akhtar Hossain said, “Many traders had to back off due to a lack of capital. The economic recession caused by the war also had a negative effect on the export market.” He added that the prices of jute have decreased in the local markets.