The government yesterday lifted ban on exporting all kind of raw jute, ending a four-month embargo.
In a circular, the Ministry of Textiles and Jute said raw jute could be exported from April 03.
On December 2 last year, the government embargoed raw jute export to implement the Mandatory Jute Packaging Act -2010. Later on December 15, it issued another order prohibiting all kind of raw jute export except four types of processed jute.
The permitted types of raw jute are automatic scanning, Machine cut Jute (10 to 120mm), Jute Silver and Jute Tro.
On January 6, the government temporarily lifted the ban to release pending export orders containing around 2.77 lakh bale. According to the ministry, the move aimed at releasing the pending 251 Letter of Credit opened before November 3 last year.
Bangladesh produces around 70 lakh bale raw jute annually. Of them, the jute mills under Bangladesh Jute Mills Corporation and the private sector use around 45 lakh bale.
However, the government has been pursuing the Mandatory Jute Packaging Act, stipulating rice millers to use jute sacks instead of plastic bags. This will need an estimated 360 million jute sacks each year.
To meet local demand, Bangladesh needs an additional 15 lakh bale raw jute, Jute Director of the Department of Jute Mohammad Kefaetulla said.
Government initiative to boost jute production from this year allowed the ministry to lift the export ban. The Ministry of Agriculture has set the new raw jute production target to 85 lakh bale from the current season.