Syndicates depriving jute farmers of fair price
Absence of official minimum purchase rate blamed
Farmers pile up jute at Paker Haat jute market in Dinajpur with the hope of getting fair price there but most of them are cheated by brokers for absence of an official minimum purchase rate.Photo: STAR
After years of lull, jute markets in northern districts are again buzzing with life as the 'golden fibre' in demand again in line with its worldwide popularity. But even in the peak harvest season, farmers are deprived of its fair price as a section of jute mills officials and licence holder buyers have allegedly formed a syndicate to compel farmers to sell newly harvested jute for low prices. The situation has arisen as the government has not fixed any minimum purchase rate for government-run Bangladesh Jute Mills Corporation (BJMC) to purchase raw jute from farmers. Amin Jute Mills, Crescent Jute Mills, Latif Bawani Jute Mills, Bangladesh Jute Mills, Star Jute Mills, UMC Jute Mills and Gul Ahmed Jute Mills under BJMC have recently begun purchasing raw jute in full swing in northern districts, said traders and farmers. Some private jute mills are also purchasing raw jute. In absence of government's minimum purchase rate of raw jute, jute mills are buying it at 'current market price' through their local agents who are license holders, jute mill sources said, adding that the price may vary on different days and at different places. Jute department sources said there are about 2500 licence holder buyers who are authorized by the government to purchase jute from markets in eight northern districts -- Rangpur, Dinajpur, Gaibandha, Nilphamari, Kurigram Lalmonirhat, Thakurgaon and Panchagarh. They supply jute to BJMC owned jute mills. There are allegations that a section of field level jute mill officials and licence holder buyers form syndicate and fix up an 'unwritten' purchase rate of jute to make unreasonable profit. Poor farmers, many of whom have to repay loan money with interest to usurers or to arrange daughter's marriage, are compelled to sell newly harvested jute to them for prices fixed by them. Jute offices of different districts informed that a maund (40 kg) of good quality jute is selling from Tk 1500-1600 in Rangpur, Tk 1400-1600 in Dinajpur, Tk 1500-1700 in Gaibandha, Tk 1350-1575 in Nilphamari, Tk 1450-1880 in Kurigram, Tk 1400-1550 in Lalmonirhat, Tk 1400-1600 in Takurgaon and Tk 1480-1620 in Panchagarh. Many farmers said just before the beginning of current harvesting season, jute (of last year) which was kept at traders' godowns was sold at Tk 2800 but the price drastically fell as soon as the harvesting began. In last year, farmers were compelled to sell jute at Tk 800-900 in the harvesting season. During recent visit to different big jute markets like Mirganj Haat, Dhela Peer Haat of Nilphamari, Paker Haat of Dinajpur, Sakoa Haat, Boda Haat of Panchagarh, this correspondent found that raw jute are selling from Tk 1250 to Tk 1600, depending on the quality. "I went to Pakerhat market in Dinajpur but none of the buyers agreed to buy my harvested jute at more than Tk 1300 a maund," said Atowar Rahman, a farmer of Angarpara village in Nilphamari Sadar upazila. Mahmudar Rahman, a licence holder buyer in Jaldhaka upazila of Nilphamari, denied the allegation of making syndicate to control market and said, "In competitive market none can control the price. It totally depends on supply and demand." "We have nothing to do to control markets. There is no minimum rate of the government to purchase jute from local markets. Jute mills or licence holder buyers can purchase jute from markets at competitive price depending on supply and demand," said Saifur Rahman, assistant director at regional office of jute department in Rangpur, also the in-charge of its Dinajpur office.
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