Steep rise in raw jute price hit jute goods exports market

Jute goods exports have logged almost flat growth from 2010-11 (0.19 million tonne) to 2013-14 (0.21 million tonne). However, jute goods exports declined sharply in 2014-15 to 0.15 million tonne, a fall of 27 %.

Manish Poddar, chairman, Indian Jute Mills Association (IJMA) said that the rising prices of jute goods has both a short-term and long-term impact on the export market. While exports may not be impacted in a big way in value terms, the decline would be felt in volume terms. They have already lost major export markets like Egypt and Syria. Moreover, there is no incentive from the Government of India on exports unlike Bangladesh which continues to incentivize jute exports.

A squeeze in export orders has wiped out profitability of the mills with major export orders.

A report by the Jute Commissioner Subrata Gupta said that jute mills with substantial export orders have been adversely impacted as several had contracted orders with foreign buyers without expecting such huge jump in raw jute prices.

While on one hand, this could wipe out profit for these mills, on the other, the increase in prices of these goods could also shrink the demand from foreign buyers. Further, the sharp increase in price of some products such as jute felt and Hessian can also adversely impact the opening up of new markets, such as those for geo-textiles and jute composites. These developments do not augur well for the health of the jute sector in the long term.

The escalated prices of jute goods as well the B Twill sacking prices are now ruling at Rs 74,000 a tonne whereas Hessian has moved beyond Rs 100,000 per tonne.

Recent Posts

Swisstulle advances dyeing efficiency with JigMaster

Swisstulle adopted JigMaster for its dyeing and finishing operations, especially for high-quality technical textiles used in fashion and automotive industries.

3 days ago

Birla Cellulose and Circ partner to scale textile recycling

Birla Cellulose, a leader under the Aditya Birla Group, has announced a long-term partnership with Circ, a U.S.-based textile recycling…

3 days ago

CARBIOS unveils enzymatically recycled polyester t-shirt

CARBIOS has collaborated with leading brands Patagonia, PUMA, Salomon etc. to create a groundbreaking polyester garment made entirely from textile…

3 days ago

Yangi launches sustainable fiber-based food tray

Yangi, renowned for its renewable packaging solutions, has launched a fiber-based food tray as a sustainable alternative to plastic trays…

3 days ago

Tarpaulife Project develops alternative to PVC-coated fabrics

The European Tarpaulife Project is working on polyolefin-coated fabrics, such as polyethylene, that can be manufactured to compete with PVC-coated…

3 days ago

Better Cotton to standardise measurements for cotton production

Better Cotton has joined the global non-profit alliance, Cascale, in a three-year project aimed at standardising LCA methods across the…

3 days ago