Sunday 10 November 2013

Import Of Raw Jute Rises As Local Production Falls

Jute factories in eastern Nepal have been sourcing raw jute from countries like India and Bangladesh as local production of this cash crop is decreasing with each passing year.



According to Nepal Jute Mills Association (NJMA), local production can meet only around 20 percent of the demand.



If jute mills in the country are to operate to their full capacity, they consume around 100,000 tons of jute a year. Annual production of raw jute hovers around 18,000 tons.



“Jute mills in Sunsari-Morang industrial corridor are not operating to their full capacity because of the shortage of raw materials. They are utilizing only around 60 percent of their installed capacity,” Rajkumar Golchha, president of the NJMA, told Republica. “Most of the mills in the corridor are importing raw jute from India.”



The demand for raw jute increased further after Biratnagar Jute Mill recently resumed operation after a hiatus of five years. Arihant Multi-Fibers - the largest jute mill in the corridor - alone consumes around 75-100 tons of jute every day.



Though industrialists and farmers have been putting pressure on the government to promote jute farming, the government has been turning deaf ear to their demands, according o the officials of NJMA.



Shyam Paudel, general manager of Biratnagar Jute Mills, said the government should come up with fresh incentives to encourage more farmers toward jute farming. “Earlier, Nepal used to export raw jute to India and Bangladesh. The situation has become opposite now,” he added.



Industrialists say Nepal´s raw jute production is declining because of the primitive farming method which is costly. As the rate of return is low, many farmers have stopped jute farming and started cultivation of other crops which give better yields.



According to Trade and Export Promotion Center, Nepal imported raw jute worth Rs 2.3 billion in fiscal year 2012/13.



There are 10 jute mills in Sunsari-Morang industrial corridor. They employ more than 20,000 workers.


Source:- myrepublica.com





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