Rules eased for raw jute export

The government has removed the condition for raw jute exporters of taking prior approval from the commerce ministry before shipment, according to a notice issued by Export Promotion Bureau (EPB) yesterday.

The commerce ministry included the provision in the export policy 2021-2024, where raw jute exporters will have to get clearance before exporting the natural fibre, a move which was opposed by the jute traders earlier.

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"From now on, they will not need any clearance," said Kumkum Sultana, director for policy and planning of EPB.

The relaxation comes as export earnings from raw jute and jute goods are falling.

Raw jute export dropped 12.5 per cent year-on-year to $117 million in the July-January period of 2022-23 fiscal year, according to the EPB.

Farmers are selling the best quality raw jute at Tk 2,900 a maund in Faridpur, one of the main growing districts, now down 12.5 per cent from Tk 3,200 a year ago, reports our correspondent from the district.

Arju Rahman Bhiuyan, senior vice-chairman of Bangladesh Jute Association (BJA), said it was a hassle for exporters to get approval from the commerce ministry before exporting raw jute.

Finally, the ministry has withdrawn the rule, he said but added that the relaxation might not facilitate rebound in export earnings.

The war in Ukraine and the devastating earthquake in Turkey, a key consumer of Bangladesh's jute yarn, have affected global demand for jute, he said.

"Overall global situation is not favourable," he said.

Between July and January, raw jute exports from Bangladesh amounted to 550,000 bales, he said, adding that shipment to India, a major consumer of locally grown jute, was around 200,000 bales.

Meanwhile, the agriculture ministry on Sunday declared jute as an agricultural product, a development that is expected to enable farmers to access low-cost farm loans, and help exporters enjoy incentive for agricultural products shipment abroad.

A top official of the agriculture ministry said they issued the notification in line with the decision at the cabinet earlier.

"This will inspire production of jute, development of the jute sector and increased export of the natural fibre," he said.

"We are really thankful to the government for declaring jute as an agricultural product," said Abdul Barik Khan, secretary general of Bangladesh Jute Mills Association (BJMA) which has been demanding this.

"Some 4-5 crore people are engaged with the jute industry. They will benefit from this," he said.