Jute prices in Magura controlled by a syndicate

Favourable weather conditions and a total of 41010 hectares of land used for jute cultivation has led to the bumper production according to the DAE. However the prices have gone down making it hard for the farmers to turn a profit this year. Jute farmers alleged that at first, jute was being sold for Tk2100 per Maund (1 Maund is 37Kg) but prices have fallen to Tk1300 to 1400 per Maund. But they are frustrated because they cannot sell directly to Bangladesh Jute Mills Corporation (BJMC) because of an acute funding crisis at the corporation. Farmers are forced to sell to middle men for immediate cash at a price they demand which is usually Tk1200 to Tk1300 while the middle men sells it to BJMC for twice the amount. Romesh Sheel a jute farmer said: “We sell to the middle men at Tk1300 per Maund while they sell it to BJMC for Tk1800 to Tk2000 a Maund.” Another jute farmer Bodi Sheikh said: “ The cost of jute production every year while selling price is declining.” “The selling price of Tk1300 does not cover our production cost much less renders a profit if the current situation prevails I cannot afford to produce jute anymore.” Assistant Manager of BJMC Moshiur Rahman confirmed the corporations financial crisis saying: “We purchased jute worth five crore sixty lakhs but have only been able to pay out Tk1 crore.” He added that because farmers want to sell for immediate cash they prefer to sell to middle men instead of BJMC. But he also said that some farmers do however sell directly to BJMC. A jute wholesaler Uday Shaha denied the allegations that a syndicate was controlling the price of jute. He said that they still had the older stock of jute bought at Tk2100 which is why they are reluctant to pay the same price for more jute. DAE official Noabul Alam admitted that the price of jute has fallen but assured that the bumper production would yield the farmers a profit this year.