Pakistan jute industry likely to be affected by Bangladesh jute export ban

YarnsandFibers News Bureau 2015-11-12 11:00:00 – Lahore

Pakistan local jute industry that reliant on imported jute from Bangladesh likely to face serious crisis if the export ban imposed by Bangladesh without forewarning is not lifted immediately. Jute product makers have urged the government to convince Bangladesh into lifting a ban on its fiber exports, stating that it is hurting the local industry.

According to Pakistan Jute Mills Association (PJMA), the sudden decision by Bangladesh to impose ban on exports of raw jute for a month from November has affected all the unshipped export contracts. The ban will be catastrophic for the mills as well as federal and provincial governments, which require jute products for the safe storage of agricultural products.

Secretary General PJMA Muhammad Younus said that the jute sector in Pakistan is already under tremendous pressure due to the challenges, like lower demand than capacity and stiff competition from woven polypropylene and other health hazardous packaging material, which are used in large quantity in the country.

According to Younus, government of Bangladesh violated international norms both on legal and moral grounds as the cancelled shipments have already been paid for through TT [telegraphic transfer] and LCs [letters of credit].

The jute production will suffer the most if the ban is not withdrawn immediately since jute is used in many products and as a main storage material for eatable items and also there are around 20,000 families associated with jute mills.

The main victim will be the economy of the rural areas in a big way as the small farmers would not be able to sell their crops without the required Bardana.

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