Home Business Govt considers partial lifting of embargo on raw jute exports

Govt considers partial lifting of embargo on raw jute exports

The government is considering allowing exports of 17,589.26 tonnes of uncut low-grade jute as the shipment procedures of which were completed before the ban.The state-run department of jute has sent a letter to the ministry of jute recently, saying the authorities can allow the shipment of this quantity of Bangla Tossa Rejection (BTR), for which letters of credit (LCs) were opened before January 18 when the ban was imposed.As per the Section 13 of Jute Law 2017, the ministry of textiles and jute banned exports of BTR and Bangla White Rejection (BWR) on January 18 last.Based on applications of the exporters, the jute department has already prepared a list of 25 companies that opened 81 LCs against 175,89.26 tonnes of uncut BTR prior to the restrictions imposed by the government.The department also listed 24 exporters who made 119 contracts with importers to export uncut BTR, according to the letter sent to the ministry.But the jute department has suggested the ministry give export permission to the companies who opened LCs as there is no option to open LCs except banks.The Bangladesh Jute Association (BJA) leaders said they expressed the hope they would get a positive response from the government within a short time in releasing their product.When contacted, chairman of the BJA Syed Ali said the earnings from the sector declined significantly after the embargo on exports of two types of jute.A significant volume of Bangladesh’s total production of raw jute is of low-grade. Local jute millers do not purchase such jute. For this reason, they export these items, he said.”We have already communicated with the ministry of commerce to withdraw such a ban,” he said, adding that the ministry has assured them of holding a meeting within February 20 in this regard.Earlier, the BJA had made a formal request to the relevant ministries and the Prime Minister’s Office to lift the embargo.On an average, some 1.0-1.5 million bales of raw jute are exported each year from Bangladesh. Of the total volume, about 20 per cent is BTR and BWR, sector insiders said.India, Pakistan and China are the major importers of Bangladeshi raw jute.About 7.0 to 8.0 million bales of raw jute are produced a year locally.

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