PJMA urges govt to engage Bangladesh

Country has barred export of raw jute, Pakistan importers affected

LAHORE: The Pakistan Jute Mills Association (PJMA) has urged the government to convince its Bangladeshi counterpart to consider lifting its ban on the export of raw jute.

“Since Pakistan jute mills are solely dependent on imported raw material from Bangladesh, it will be catastrophic for the mills as well as for the federal and provincial governments, which require jute products for safe storage of agricultural products,” they said.

The Ministry of Jute and Textiles Bangladesh banned the export of raw jute for a month effective from Nov 3, 2015, while all unshipped export contracts are affected by this sudden decision.

‘’The jute sector in Pakistan is already under tremendous pressure due to the challenges it is facing, like lower demand than capacity and stiff competition from woven polypropylene and other health-hazardous packaging material used in large quantity in Pakistan,” said Pakistan Jute Mills Association (PJMA) Secretary General Muhammad Younus.

“Moreover, the Bangladesh government has violated international norms, both on legal and moral grounds, as they shipments have already been paid for through TT and LCs at site; this sudden decision affects that too,” he added.

Younus said the ban came without forewarning and would result in a serious crisis for the local jute industry, if not lifted immediately.

It would also have grave implications for the upcoming crops of rice, potato, wheat and maize, along with other commodities that need proper packaging in natural fibre.

This is not the first time that Bangladesh government has imposed ban on jute export, however, the inclusion of unshipped orders this time has worried Pakistani importers who are anticipating the ban could be extended this time.

“With such circumstances, not only the local jute mills and the associated 20,000 families, but the Government of Pakistan would too face issues because every year they float tenders for the purchase of jute bags for the storage of wheat and other good grains,” explained Younus.

Published in The Express Tribune, November 12^th, 2015.

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