The country's jute sector continues to face double whammy as imports of finished goods have jumped by 24%, while exports have declined by 22% in the April to January period of financial year 2014-15.
"According to National Jute Board estimates, jute exports for the period April-January of FY15 have declined sharply to Rs 1,115 crore, down 22% in rupee terms and 20% in dollar terms as compared to corresponding period of FY14," said a senior official of Indian Jute Mills Association (IJMA).
In terms of quantity, the decline was 37%, or 98,500 tonnes, during the April-January period over the corresponding period of FY14. Regarding import of jute products, there was a jump of 24%, or Rs 511 crore, in value terms for such products in April-February period of FY15.
The unfavourable trend seems to be gaining momentum as in February 2015 alone, imports were higher by 75% in value terms and 79% in volume terms as compared to the corresponding month of the previous year. IJMA sources have attributed higher imports to lack of monitoring and check in end-use of jute products.
On top of this, a subsidy of 7.5% by Bangladesh for export, has resulted in flooding into Indian market. When the government rate is Rs 63,000 a tonne for jute, the same product is available at Rs 53,000 a tonne in the open market, they said.
Source:business-standard.com
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