Rising global demand and poor production at home of the golden fibre, has pushed raw jute prices to Tk 1,000 a maund.

This neglected sector for years, witnessed prices in the range Tk 500 - Tk 550 during off season to rise abnormally to Tk 950 a maund, this season.

New arrival, industry insiders feel, may help lower the prices this year, but output may fall short in view of the prevailing demand in local and global markets.

Confirming this Shabbir Yousuf, Chairman, Bangladesh Jute Spinners Association (BJSA), opined that demand may further raise the jute fibre prices to breech Tk 1,000 per maund level depending on its quality .

On a visit to Kolkata, Yousuf contended that prices in West Bengal, India were at par with those in Bangladesh.

He viewed that hoarders and traders were active prompting further price rise.

But jute farmers in Bangladesh have never had it so good returning handsome profits growing jute on small pieces of land.

According to sources, local jute production was 40 lakh bales last year against the total demand of about 50 lakh bales.

Farhad Ahmed Akanda, leading member of Bangladesh Jute Association said that in current year jute prices ranged between Tk 700 and Tk 900 as per quality and attributed higher prices to lower local production.

Other sources say poor seed quality was responsible for lower output.

During financial year 2004-05, raw jute exports earned Bangladesh US $307 million and $96 million in foreign exchnage.

Jute exports during July-September period in 2005-06 rose by 14.15 percent and in raw jute by 59 percent.

Fibre2fashion.com