Bangladesh bans raw jute exports to meet domestic demand

The Ministry of Textiles and Jute of Bangladesh issued a notice that the government decided to immediately suspend the export of all varieties of raw jute to ensure domestic market supply. Industry analysts pointed out that the reason for the government’s move was a large gap in the supply of raw jute in the domestic market. Bangladesh’s annual local jute consumption is about 3-3.2 million bales, and its exports are about 1.8 million bales. However, in 2009, Bangladesh’s raw jute production was about 4.5 million bales. Due to the gap between supply and demand, unscrupulous traders took the opportunity to create an atmosphere of supply panic and drive up prices. The price of raw jute in the domestic market soared, from Taka 1,200-1,250 per maund a few months ago to Taka 1,700-1,750. Jute manufacturers demand government intervention. But the government’s move angered exporters, who denied there were problems with domestic supplies and staged demonstrations to protest the government ban. They also believe that the rising demand for environmentally friendly natural fibers in the international market has led to an increase in the price of raw jute and jute products in the international market.