Don’t impose duty on raw jute exports
The Bangladesh Jute Association (BJA) yesterday urged the federal government never to impose any duty on raw jute exports as the united states currently includes a surplus of the fibrous material to meet the local demand following recent closure of 25 state jute mills.
The association made this call as the federal government has been mulling the imposition of duties, citing a fall in jute production and a growth in domestic prices because of the ongoing coronavirus pandemic and countrywide floods.
Alternatively, jute millers have demanded a ban on exports or the imposition of a $250 per tonne duty on jute shipments this year.
On August 27, raw jute exporters had criticised the proposal in a gathering of the National Jute Sector Coordination Committee, chaired by Jute Minister Golam Dastagir Gazi.
But the association, together with the Shippers' Council of Bangladesh (SCB), has again requested the government to discard such plan during a press conference, held at Hotel Purbani International in Dhaka yesterday.
The shutdown of state jute mills has created a surplus of jute available in the market, according to a statement signed by Sheikh Syed Ali, chairman of the BJA, and Md Rezaul Karim, chairman of SCB and former BJA chairman.
The Department of Jute has reduced its jute production target by practically 9 % for the existing fiscal year to 84.14 lakh bales due to floods whereas the gross annual domestic demand is 55 lakh bales, the BJA said in a statement.
Annually, the closed government mills used to take 13 lakh bales of jute, which will be designed for use for local millers this year, it said.
Moreover, instead of spending money on purchases made earlier, the closed mills returned their stored jute with their suppliers, which is also now available on the market, the BJA added.
Jute exports have decreased drastically from 28-30 lakh bales in 1984 to 8-9 lakh bales this past year and it'll fall further this year as much foreign jute mills closed their doors because of too little raw jute, the association said.
The association acquires jute from farmers and sorts those out in separate grades according to the requirement of foreign buyers. Over one lakh people work on the market in several districts, including Dhaka, Narayanganj, Mymensingh and Khulna.
"All these people can be jobless and we will lose the export market if the duty on raw jute shipments is imposed now."
A vested quarter is now trying to avoid export of raw jute, it added.
Businesses involved in the sector will have to face huge losses if indeed they cannot export their stored raw jute and sell those in the neighborhood market.
So, the government shouldn't stop or impose any duty on raw jute exports now for the sake of the industry, the association said.
They also wanted the federal government to take necessary steps to bring back the exporters who left the sector as a result of the losses caused by the gradual closure of foreign markets.
They proposed the inclusion of the raw jute exporters in a set of industrial sectors permitted get financial assistance from the stimulus package announced by the prime minister following Covid-19 outbreak in March.
The association also sought for export subsidy against shipments of raw jute.
