After a difficult year, jute production in Bangladesh is likely to see a significant rise which may lead to resumption of exports of raw fibre to India, the country's industry minister indicated.
Late last year, Bangladesh had banned the export of raw jute to countries, including India, to ensure adequate availability for local jute mills, which were facing trouble in procuring the raw material because of price hike in the domestic market, in part due to plummeting production levels.
“A substantial amount of land was being utilised to cultivate crops other than jute. However, this is now likely to change and we will produce higher quantities of the fibre. Although currently there is no export of raw jute from the country, we have lifted the ban on exports,” Bangladesh Minister of Industries Dilip Barua said.
He was speaking on the sidelines of an event organised by the Indian Chamber of Commerce on Saturday.
Barua said that the jute industry in his country had been demoralised as synthetic fibres had posed as a substantial threat. “But things have now picked up and some mills which had closed down have also been revived. After a string of losses, the Bangladesh Jute Mills Corporations is also expected to make a profit this year,” he added.
Bangladesh is the world's largest jute growing country with an annual production of about 5.5 million bales.
While India, Pakistan and China are large buyers of raw jute, other countries such as Britain, Spain, Germany and Brazil also import the fibre.
