LAHORE - The Bangladesh Ministry of Jute and Textiles has banned the export of raw jute for a month effective from Nov 3, 2015 while all unshipped export contracts are affected by this sudden decision.

Since Pakistani jute mills are solely dependent on imported raw material from Bangladesh it will be catastrophic for the mills as well as federal and provincial governments which require jute products for safe storage of agricultural products.  

“The jute sector in Pakistan is already under tremendous pressure due to the challenges it is facing like lower demand than capacity and stiff competition from woven polypropylene and other health hazardous packaging material which are used in large quantity in Pakistan,” said Secretary General, Pakistan Jute Mills Association (PJMA) Muhammad Younus.

Moreover, he added, Government of Bangladesh has violated international norms both on legal and moral grounds as the shipments have already been paid for through TT & LC’s at sight which have been affected due to this sudden ban.

‘This export ban by Bangladesh without forewarning will result in a serious crisis for the local jute industry if not lifted immediately. ‘It will have serious implications for the upcoming crops of Rice, Potato, Wheat, Maize etc. This ban will have a very negative impact on commodities which need to be properly packed in natural fiber,’ he added.

‘The main victim will be the economy of our rural areas in a big way as the small farmers would not be able to sell their crops without the required Bardana,’ reasoned Secretary General PJMA.

‘Our production will suffer the most if the ban imposed by Bangladesh on the export of raw jute is not withdrawn immediately since jute is used in many products and as a main storage material for eatable items.