Low-grade jute barred from export

Low-grade jute barred from export

TRIBUNAL DESK: The government yesterday banned the export of low-quality raw jute indefinitely on allegations that inferior grade fibre is shipped in the name of quality jute, according to a notification from the ministry of textiles and jute.

“We have a reputation of growing jute of superior quality in our country,” said Nasima Begum, joint secretary to the ministry of textiles and jute.

So the shipment of Bangla Tossa Rejection and Bangla White Rejection categories of jute creates a bad record, she said.

“The order will be effective immediately,” said the notice.

The Bangladesh Jute Mills Association hailed the move, while the Bangladesh Jute Association (BJA), which represents raw jute exporters, said the ban will hurt exporters.
BJA Chairman Shaikh Syed Ali, however, denied the allegation of passing of low-grade fibre as quality jute.

The government took the decision suddenly and without consulting them, he said. “The restriction will affect the whole jute sector. We protest it,” he said over phone.

BJMA Secretary Abdul Barik Khan said the ban would make the raw jute prices stable in the domestic market.

“We want to say that no jute should be exported in the name of rejection (low grade),” he said, adding that most of the raw jute shipped is of inferior quality.

But the percentage of rejection may be between 2 percent and 5 percent, he added. The ban comes at a time when export earnings from raw jute are drying up.

Shipment slumped 20 percent year-on-year to $82.77 million in the first half of fiscal 2017-18, according to data from the Export Promotion Bureau.

Despite the fall in export receipts from raw jute, overall export earnings from the jute soared 21 percent year-on-year to $574 million during the period. Daily Star