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Published:
2018-02-28 21:04:42 BdST

Govt okays export of uncut low-grade jute


FT ONLINE

The government gave permission on the export of uncut low-grade jute, shipment procedures of which were completed before imposing ban.

To this effect, Ministry Textiles and Jute issued a circular on Monday.

Bangla Tossa Rejection (BTR) and Bangla White Rejection (BWR) will be allowed to export their produce if letters of credit (LCs) or TT were opened on or before January 18, said the release.

As per Section 13 of the Jute Law 2017, the ministry of textiles and jute banned exports of BTR and BWR on January 18.

Based on exporters’ applications, the jute department earlier prepared a list of 25 companies that opened 81 LCs against 175,89.26 tonnes of uncut BTR and BWR.

The department also listed 24 exporters who made 119 contracts with importers to export uncut BTR.

However, the jute department suggested the ministry give export permission to the companies who opened LCs.

A significant volume of Bangladesh's total production of raw jute is of low-grade.

Local jute millers do not purchase such produce, hence the products are exported, said exporters.

On an average, 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, said sources.

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 per year.

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