Jute products’ exports dip

Biratnagar, August 12:

Export of readymade jute products to India has decreased by Rs 950 million in the last fiscal year. After cheap Bangladeshi jutes started pouring in the Indian markets, exports of Nepali jute and its products to India has seen a whopping fall.

According to Jute Industry Organisation (JIO), readymade jute products worth of Rs 958.8 million was exported to India by mid-July of 2064-65, while the products worth of Rs 1.9 billion was exported to India in the same period of 2063-64.

After the cheap readymade jute from Bangladesh started flooding Indian markets, price and export of Nepali jutes have hit hard as it could not compete, president of JIO Raj Kumar Golchha said.

Nepal has been exporting three kinds of Nepali jutes — Hesian, Packing and Twine to Indian markets. According to data provided by JIO, Hesain jute at 87.80 million metric tonnes, Packing jute at 260 million metric tonnes and Twine jute at 26.8 million metric tonnes have been exported to India during the fiscal year 2064-65, while Hesian at 75 million metric tonnes, Packing at 32.8 million metric tonnes and Twine at 39.1 million metric tonnes were exported to India in last fiscal year.

The Bangaladeshi jute is more cheap because of Bangladeshi government’s facility for them. “The Bangladeshi government also provides electricity in three rupees per unit for the jute exporters,” Golchha said.

The jute entrepreneurs, who have been demanding discount in electricity fare, warned that the future of all nine jute industries is bleak. Jute entrepreneur Champalal Rathi said the problem would not be solved until the government provides discount in electricity fare and industrial areas declared peace zones.

Nepali jute industries are using 70 per cent raw jutes imported from India and Bangladeshi. They use only the remaining 30 per cent jutes produced in Nepal. Entrepreneurs said the jute industries in Morang-Sunsari Industrial Corridor area could not produce the jute products according to their capacity due to frequent bandhs and strikes. They have also demanded smooth supply of electricity for the industries.

The organisation has said that more than 20,000 employees would loose their jobs, if the

industries in the eastern region are closed.