DHAKA: Jute Export of jute goods to India came to a sudden halt when Indian jute importers stopped their orders after the Indian jute commission cancelled their licenses and added some strict clauses to the import policy last Thursday.
More than 100 trucks laden with jute goods have been sent back from Benapol and a few other land ports in the last three days, according to businessmen associated with raw jute and jute-made goods.
Secretary of the Kolkata-based Indian jute product importers association, Hrishi Jalan, told Prothom Alo many Bangladeshi jute mills exported goods worth Rs 50 crore to India on credit. Similarly, Indian importers have paid for their orders in advance worth Rs 100 crore. Orders worth Rs 400 crore have been finalized already, and all of these orders are in limbo now, he said.
Bangladesh Jute Mills Association (BJMA) secretary, A Barik Khan, said this decision would affect the sector for at least six months, which would hamper jute exports greatly. Some jute mills might shut down, he fears.
According to the order of the Indian jute commission, all Indian jute importers have to get new licences. Those who would buy the goods from them, have to be licensed as well. The new circular also instructed them to obtain a No-Objection Certificate (NOC) from the Jute Commissioner’s Office every time a consignment is brought in. Jute sacks cannot be made with imported raw jute or yarn.
Indian jute product importers association said there is no point of importing jute if it cannot be used to make sacks.
According to the information provided by Hrishi Jalan, around 125 lakh bales of jute sacks are needed just to package crop seeds in India.
People concerned with jute exports said, India took this decision to discontinue importing from Bangladesh. The new order never mentions any ban on imports, or even name Bangladesh- but the conditions imposed are clearly aimed at Bangladesh as India imports most of its jute from here.
According to the Export Promotion Bureau, raw jute and jute goods worth $86 crore 58 lakh have been exported from Bangladesh in fiscal year 2014-2015, of which, goods worth $10 crore 44 lakhs have been exported to India, which makes up about 12 per cent of overall jute exports. India mostly imports jute sacks from Bangladesh, and 24 per cent of the overall export of sacks was directed to India as well.
