Restriction: Jute industry on verge of collapse

Bangladesh bans raw jute exports indefinitely

LAHORE: All efforts made by the Pakistan Jute Mills Association (PJMA) seem to have gone in vain as raw jute imports from Bangladesh will remain suspended until further notice pushing the Pakistani industry on the verge of collapse.

The PJMA had long been appealing to the government to facilitate the shipment of consignments that had already been paid for and were at the ports, ready to be shipped.

“Under the Bangladesh Jute Ordinance 1962, Section 4 and 13, raw jute exports will remain suspended until further notice for proper implementation of the Bangladesh Mandatory Jute Packaging Act 2009,” a PJMA spokesperson said.

A similar month-long ban was imposed starting Nov 3.

“PJMA terms the matter very serious since Pakistan, being one of the biggest importers of Bangladesh jute, fulfills all the raw material requirements of its jute industry from Bangladeshi imports,” stated PJMA.

With the industry already collapsing, any barrier in the way of jute supply would mean a halt to production of jute products and result in joblessness for thousands of labourers.

The association added that all stakeholders including provincial food departments and Pakistan Agricultural Storage and Services Corporation (Passco) would face difficulties due to non-availability of jute sacks.

“Crops especially wheat, rice and potatoes are likely to be wasted if there are no jute sacks,” said the association.

PJMA appealed to the government of Bangladesh to reconsider its decision in the best interest of the business communities of both countries.

“Bangladesh, as a sovereign state, can take any decision pertaining to its exports and imports, but it should certainly honour commitments and contracts signed by their exporters,” said the association.

Published in The Express Tribune, December 8^th,  2015.

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