Change in form of raw jute export to India evokes protest
The government issued a circular last week allowing export of raw jute to India in the form of both 'kutcha' and 'pucca' bales amid protests from the millers and exporters who alleged the move would ruin the industry.Raw jute only in pucca bales used to be allowed for export to India.
Industry people have expressed the fear that smuggling of jute to India would rise following the latest decision, leading to a serious setback for the country's entire jute sector.However, the circular issued by the textile and jute ministry has attached two conditions to raw jute exports to India in 'kutcha' bales.
Exporters have to follow the Bangladesh Standards and Testing Institute (BSTI) standards and they cannot sign any agreement violating the BSTI standards for raw jute export through 'kutcha' bales.
But raw jute exporters and private jute millers said such a decision of the government will destroy the industry."This will simply expand the opportunity for smuggling raw jute through the border areas," Mahfuzul Huq, chairman of Bangladesh Jute Association, who represented raw jute exporters, told the FE.
"India is our main competitor, so how can we be competitive if raw jute is smuggled to the neighbouring country," he questioned."There are some procedures for making 'pucca' bale. But virtually no effort is required to make 'kutcha' bale. What one has to do is to collect raw jute from the farmers and bind it in a crude manner," he explained.
Thousands of workers will be jobless if the government's decision is implemented, he added.Exporters alleged that government took the decision without consulting the stakeholders."We don't know why the government has taken such a decision while the party in power in its election manifesto promised to bring back the lost glory of the golden fibre," an exporter said.
Echoing the BJA leader, Nazmul Huq, chairman of Bangladesh Jute Mills Association (BJMA), said there will be crisis of jute in the country and Bangladesh will lose competitiveness in the global market.
"Indian importers will punish us offering low price for 'kutcha' bale as there exists a grading system for 'pucca' bale, depending on quality which is determined through machines."At the same time any one can prepare 'kutcha' bale just drying the raw jute, which does not ensure quality, he added.
The export of jute products to India is increasing for their quality and durability. Bangladesh exports 0.5 million to 0.6 million bales of raw jute to India annually through 'pucca' bales.
http://www.thefinancialexpress-bd.com/more.php?news_id=157708&date=2011-11-30
http://www.mzamin.com/index.php?option=com_content&view=article&id=26994:2011-11-30-16-19-40&catid=49:2010-08-31-09-43-32&Itemid=83
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