Record jute production likely

The country is set to produce a record volume of raw jute this season, amid acute water scarcity faced by the growers in retting the harvested plants.

Local jute millers, however, have feared that the prevailing water crisis, caused due to insufficient seasonal rainfalls, might affect the quality of the natural fibre.

According to official estimate, the country's raw jute production is likely to hit 7.5 million bales this year, which is 2.0 million to 2.5 million bales higher than the last year's production.

Figures showed that more than 1.3 million acres of land had come under jute cultivation this season compared to about 11.50 million acres last season. Officials and sector insiders said last year's price escalation of raw jute encouraged farmers to boost jute acreage this season. The price of raw jute hit Tk 3,000 per maund at the end of last season following supply crisis, what the industry sources termed an 'artificial crisis'.

"Despite having a robust output, jute growers in many parts in the country are still facing big problems in ratting their harvested plants because ofwater scarcity, caused due to poor seasonal rains," a private jute mill executive told the FE.

Citing field-level information, he said nearly 40 per cent of the matured jute plants are yet to be harvested across the country for want of waters. "If the situation persists, the quality of the fibre will fall, resulting in a crisis of quality raw materials for local jute industries," another industry operator said.

The jute mills, however, said despite having a much higher-than-expected level of output, the newly harvested raw jute is selling between Tk 2,000 and Tk 2,200 per maund at the growers' level. Although the price of raw jute was varying between Tk 900 and Tk 1,100 per maund at the initial stage of the last season, the price crossed Tk 3000 at the end of last season.

Given the present unusual prices of raw jute, jute millers predicted a further rise in their main raw material in the days ahead. "Already we are bearing the brunt of unusual hike in the prices of raw jute. Any further rise in the price of the fibre will certainly pose a serious threat to our survival," a senior executive of the Bangladesh Jute Mills Association (BJMA) said.

Echoing the same sentiment, another executive of the Bangladesh Jute Spinners Association (BJSA) said if the raw jute prices increase further, the jute mills will find themselves in a difficult situation to run their production. Considering the situation, both of the private jute mills operators have suggested that the government take necessary steps to prevent any unusualhike of raw jute price for the wake of survival of local jute mills.

According to industry insiders, the country's jute industry - both under the government and private sectors - consumes around 4.0 million bales of raw jute annually while the country exports about 1.8 million to 2.0 million bales of raw jute per annum.

Some 0.3 million bales of raw jute are required for other internal uses per year, they mentioned.