Raw jute prices reach new high
Raw jute prices hit a new high as the herbal fibre traded for up to Tk 5,300 per maund (a single maund equals 37 kilogrammes) at local markets found in Faridpur, the biggest making district, as source shortage became acute.
The latest data implies that prices soared 29 % in just over fourteen days from Tk 4,100-4,200 per maund in the third week of January, according to traders.
"The market has truly gone wild. It would appear that rates happen to be soaring every hour and there is absolutely no scope to get a bargain," explained Mohammad Shahidul Islam Dulal, proprietor of Progress International, a jute trader and exporter.
Rates of raw jute began rising after harvesting began in the July-August period this past year.
Rates of the eco-friendly fibre crossed Tk 3,000 per maund in September amid stockpiling by middlemen and slow let go by farmers seeking to earnings amid speculations that development fell because of this of floods and unfavourable conditions.
The soaring prices created considerations among millers, who warned the other day that most mills could be shut within the next a couple of months due to a shortage of raw jute to make jute yarn, twine, bags, sacks and other goods.
Millers said total production would be 55 lakh bales in the last season even while Hossain Ali Khondoker, director standard of the Division of Jute (DoJ), said that they expected development of 74 lakh bales.
Now it would appear that overall production will be around 55-60 lakh bales, he said.
In order to keep factories functioning, the Bangladesh Jute Spinners Association (BJSA) and Bangladesh Jute Mills Association (BJMA) in a letter to the Ministry of Textiles and Jute last week urged the federal government to totally ban raw jute exports and invite imports until June 2021.
Traders in Faridpur district blamed poor supply of raw jute for the spiralling price.
Md Abul Hasan, a jute trader of Baliagotti market in Saltha upazila of Faridpur, has been engaged in the trade since 2004.
He said the high price of the fibre afflicted his purchases seeing as he cannot buy up to needed.
"Through the jute harvesting period, I bought 250-300 maunds of raw jute daily however now, I cannot buy a lot more than 70 maunds a trip to this time around," he said.
Md Khokon Matabbar, another jute trader of Kanaipur bazar under Faridpur sadar upazila, said raw jute was purchased at Tk 2,200-2,400 per maund in local markets during the harvesting season.
"It is really unthinkable that raw jute has been sold at Tk 5,300 per maund," he said.
However, traders warn that prices are likely to go up further.
There are a few dishonest businessmen, who stocked raw jute through the harvesting season.
"Now, they are getting profit from the jute," he added.
Production of raw jute was very low this past year, said Omar Ali Mollah, a jute grower in Faridpur sadar upazila. He got simply 50 maunds of jute from a lot more than 3 acres last season compared to 70 maunds the prior season.
Mollah said he sold all his manufacture at Tk 2,400 per maund after harvesting.
"Farmers cannot profit from the existing prices," he added.
Contacted, DoJ Director General Khondoker explained his office provides asked the district administration to execute mobile court drives to lessen hoarding and continue to keep jute prices stable.
"Our field offices perform drives through mobile courts to curb illegitimate stocking," he said.
The DoJ had earlier told the local administration that no registered traders would be able to hold a lot more than 1,000 maunds a month and none without licence could be involved with jute trading.
