Bangladesh has so far exported 700,000 bales of raw jute this year, said Rezaul Karim, former Chairman of Bangladesh Jute Association. He said jute goods and raw jute exports witnessed a rise in the first quarter, at a time when earnings from most export items slipped significantly because of the late impacts of global recession.

Jute goods exports are on the rise due to increasing pressure for using degradable and eco-friendly products in parts of the world.  Raw jute exports saw nearly 28% growth in the July-September, 2009 period, earning over $36 million, but people involved in jute goods and jute yarn manufacturing blamed the export of raw jute for the low supply and high prices of jute on the local market.

The price of raw jute increased by $100- $150 a tonne this year on the international market, also pushing its price on the local market. Raw jute exporters said high demand for the golden fibre in India, Pakistan and China is a catalyst to export growth, which they said helped jute farmers receive good prices this year.

India and China are importing raw jute to produce different jute-made products, including sacks, yarn and bags, demand for which is increasing in those countries. Bangladesh now exports jute products to around 30 countries, including Canada, Japan, EX and the United States.

A total of 178 public and private jute mills, which directly employ 150,000 workers across Bangladesh, make different jute products. Bangladesh Jute Spinners Association Chairman Ahmed Hossain said that total 5.0 million bales of jute produced this year, 700,000 bales (one bale=180kg) of raw jute have been exported and local jute mills bought 1.0 million bales. The market should have another 3.0 million bales of raw jute.  Jute goods makers urged the government to conduct a survey on the total raw jute stock and allow raw jute exports only after meeting local demand.