Jute exports shrinks as supply falls

There is a short fall in Indian’s jute exports, primarily owing to the reluctance of jute producers to supply their products to exporters. Jute exports between April’99 and February’00, the first 11 months of the fiscal year, declined to Rs. 482 crore, a drop of 11.12 % from the Rs. 543 crore in the corresponding period of the previous fiscal year, according to commerce ministry figures.

Indian Jute Mills association (IJMA) chairman reported that "India’s (jute) export is shrinking because of the rising cost of production and the country has become a residual supplier after Bangladesh. Exports will decline further because of competition from Bangladesh, which is offering its products at a discount of 30 to 40 % compared to India.

According to India’s foreign trade statistics compiled by the commerce ministry, export of yarn between April’99 and February’00 came down by seven % to 60,964 tonnes from 65,556 tonnes last year, but the value of the article came down by only two % to Rs. 165 crore from Rs. 168 crore. The decline in value was comparatively lower due to depreciation of the rupee against the dollar. Much of the decline in yarn export was due to lower purchases by Syria, Saudi Arabia, Italy, South Korea, Lebanon and Poland, statistics showed as reported.

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