An organised syndicate continues hoarding raw jute in order to create an artificial crisis in the local market.
As a result, the jute price has increased almost three times than the previous year due to hoarding illegally by a section of dishonest businessmen.
One maund of raw jute is now being sold at Tk 5,200. This is the highest ever price of the golden fiber in the country’s history.
In the wake of raw jute price hike, many businessmen were compelled to shut factories as they don’t have capacity to purchase the raw jute at a high price.
Besides, such abnormal price of raw jute also slowed down the export order.
Talking to the media, leaders of the Bangladesh Jute Mills Association (BJMA) and the Bangladesh Jute Spinners Association (BJSA) said that the country produces on an average of 7.5 million bales of raw jute every year.
“And this year, 72 lakhs and 86 thousand bales of raw jute have been produced. We think we have still some 23 lakh bales. But it is very interesting to note that the rest amount of raw jutes have disappeared mysteriously,” one of the leaders said.
He urged the jute ministry to trace the persons engaged in hoarding jute through a strong syndication.
M Sajjad Hussain, chairman of the Bangladesh Jute Goods Exporters Association (BJGEA), said that the price of raw jute has increased by 38 percent.
The price of finished jute products has also increased by 25-30 percent.
If the price of raw jute continues to soar for another week, the traders will be in serious trouble.
Expressing grave concern over the abnormal price hike of jute, traders said if the price of raw jute does not come down the export of jute products will be affected in the coming months.
Jute mill owners, growers and exporters also said that the demand for jute products is showing a downward trend due to the high price of raw jute.
Earlier in July last year, the beginning of harvesting of jute, the price of raw jute was Tk 2,000-2,200 per maund.
The jute mill owners usually collect huge amount of jute during the harvesting of the golden fiber from the local market.
However, the traders did not purchase sufficient amount of jute during the harvesting as they had thought price would come down.
According to the Export Promotion Bureau (EPB), exports of raw jute at the beginning of the season in July last year were 59 per cent higher than the same month last year.
The jute traders urged the government to conduct drive against the organised syndicate members, who are plotting to make the jute market unstable.
