Raw jute prices hit a record high as the golden fibre is being traded between Tk 5,700 and 5,800 per maund at local markets in northern regions of the country. Supply shortage became acute as many hoarders had allegedly kept in their stock huge amount of raw jute to make more profit creating artificial crisis in the market.
Seasonal traders have been stockpiling raw jute in the hope of a huge profit. Such instability in the jute market was never seen before.
However, the authorities concerned are on alert position as they are conducting special drives in rural ‘haats’ and warehouses to control the market.
Kamruzzaman Shumon, a farmer from Taherpur under Baghmara Upazila of Rajshahi, told Bangladesh Post, “The present market of raw jute has gone unbelievably high. One maund good quality raw jute is being sold at the Friday’s haat at Tk 5,700 to Tk 5,800. However, we, the farmers, sold raw jute only at Tk 2,000 per maund two months ago. Now the businessmen and middlemen are making a good profit.”
Aurongozeb, a local raw jute trader of the area, told Bangladesh Post, “There was a shortage of raw jute this year. We had to buy raw jute at a higher price. Besides, there are labour cost, transportation and warehouse cost and so on. We don’t make huge profit. We do business with a view to making profit. I have my family and other expenses. The profit margin is not too high. However, we are happy with the price this year.”
“The authorities concerned are conducting special drives against syndicates who try to make the market unstable,” he added.
It has been learnt that the high demand of raw jute and bad weather are also major reasons behind the abnormal price hike of jute. Moreover, there is a huge demand of raw jute in spinning mills. The usage of jute and jute products have also increased. So, the price of raw jute has gone up, sources said.
M. A. Malek, member of Bangladesh Jute Spinners Association and Managing Director of Yeasin Jute Spinning Mills Ltd, told Bangladesh Post, “There was a low-production of jute this year due to flashflood and some other reasons. The raw jute production could not meet the demand. So, the price has gone up. We have bought it at a higher price so we are selling our goods at high price as well.”
“Our production has not been hampered so far but there is a possibility of losing our customers as they are looking for other varieties due to the price hike,” he added.
Nasimul Ahsan, Founder of Ujute, told Bangladesh Post, “The abnormal high price of raw jute will surely hamper the jute products market. The prices of jute products and fabrics have already gone up. There are many hoarders who stockpiled raw jute to make more profit.”
“The market has become unstable. The export of jute products will see a sharp fall in near future,” he feared.
Ujute is a fair trade eco-enterprise for creating market access to diversified handicrafts manufacturers in Bangladesh. It mainly deals with the jute products.