Jute Markets in 8 Northern Districts: Farmers count loss for want of govt purchase rate

Jute markets in eight northern districts see very low price of the cash crop as the mills under Bangladesh Jute Mills Corporation (BJMC), the major buyer of raw jute, have not yet started purchase the item at field level.

Farmers started reaping the crop more than one and a half months ago and 40% harvest is already compete but farmers have remained hostage to a section of brokers and traders in absence of any government purchase rate.

Twelve jute mills under BJMC in the region usually start purchasing jute from local markets in the first week of July. But this year, the mill authorities have not started purchase the item even in last week of July, said local jute traders and farmers.

Besides, eight private owned jute mills and a number of exporters and stockists in the region are also showing reluctance to purchase raw jute.

This year the Department of Agriculture Extension (DAE) set a target to cultivate jute on 1,03,960 hectares of land in eight northern districts -- Rangpur, Dinajpur, Gaibandha, Kurigram, Lalmonirhat, Thakurgaon, Panchagarh and Nilphamari, said sources of the divisional office of DAE in Rangpur.

But the farmers cultivated jute on 1,19,188 hectares of land, making a production target of 10,13,098 bales (1 bale = 187.5 kg).

Farmers in the region cultivated jute at a larger scale because they got high prices for jute fibre and jute sticks last year but this season they see a different picture.

During visits to different big jute markets like Golna and Mirganj of Nilphamari district, Baura and Mohish Khocha of Lalmonirhat district and Sakoa of Panchgarh district, this correspondent saw that jute price had fallen by Tk 500 to Tk 800 per maund within one and a half months.

A maund (40 kg) of medium quality Tosa variety of jute is now selling at Tk 1,200 which was Tk 2,000 in the second week of June. Similarly a maund of Deshi variety jute is now sells at Tk 700 instead of Tk 1200.

Farmer Zakir Hossain of Fakirpara village of Nilphamari Sadar upazila told this correspondent that he cultivated jute on two acres of land (1 acre= 100 decimal) and got 40 maunds of yield. He has sold 10 maunds at Tk 7,200 whereas he got Tk 14,000 from the same amount of jute last year.

Admitting sharp decline of jute price, Additional director of jute directorate in Rangpur Saifur Rahman said, "The government does not announce any purchase rate for jute, unlike food grains. BJMC owned jute mills usually purchase jute observing market position and competitiveness. Jute price will rise reasonably when the mills start purchase."

Ashok Bharatia, a jute trader in Saidpur, said he is yet to start buying raw jute this season as he could not clear last year's huge stock due to price fall.

Farmers Sirajul Islam of Gayabari village in Nilphamari and Mojibar of Sakoa village of Panchagarh said they sold jute for low prices as they have to prepare the land for transplanting amon paddy.

Now some brokers, irregular stockists and small traders are buying jute for low prices, taking advantage of the present dull market.

Source : The Daily Star

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