The cost of jute varies linking Tk 950 and Tk 1200 per pound this year. Farmers get around 12 pound of jute fibre per bigha while the cultivation cost does not exceed Tk 2,500 and the farmers are receiving good income from jute cultivation now, said Sirajul Islam, a farmer in Shanthia upazila under Pabna district.

Only three years ago, the cost of jute fibre went losing to around Tk 250-300 per pound and the farmers had approximately deserted calming jute as it was not cost valuable.

“Fall in jute manufacture in India and China in the last two years hard-pressed up the insist of jute from Bangladesh. As a result the cost went up,” supposed BJA Vice-president Puspendu Mohan Saha.

Puspendu Mohan Saha said the price of high-grade jute also showed optimism this year. Last year the volume of uncooked jute sell abroad from Bangladesh was around 24.47 lakh bales. India imported around 10 lakh bale jute from Bangladesh due to production shortfall there.

Similar amount of jute is expected to be exported this year, he added.

A group of farmers chatting to The Daily Star reporter at Ghugudoher beel (marshy land) had spoken joy ended the boost of price of jute fibre.

During visits in the district, this correspondent found huge areas under jute fostering. At some places, jute plants have by now been harvested and the new fibre has also ongoing coming in the market.

Although happy with the rise in jute price, the farmers said they do not get the price affirmed by the administration owned jute mills.

Instead of directly buying from the farmers, the traders buy jute from their nominated middlemen, said jute farmer Abdul Karim.

Around 50 lakh bales of jute are expected to be produced in the country this year, BJA sources said, adding that around 30 lakh bales will be inspired in the local mills and factories and the rest will be exported. Nearly 70 per cent of jute has by now been harvest.

Jute industry in the country is facing a crisis due to a fall in demand and prices of jute products because of the global monetary depression increase in production cost and devaluation of rupee in India, the main competitor of Bangladesh in the export market for jute goods.

If the trend continues, most of the jute mills will have to suspend production, and this will threaten livelihoods of around 80 thousand workers in the industry comprising about 150 mills, they added.

“Manufacture in many jute mills has by now been suspended and many others are incurring huge losses as they are exporting their products at prices lower than manufacture costs,” said Bangladesh Jute Spinners Association (BJSA) Chairman Shabbir Yusuf.

Chairman Shabbir Yusuf. mentioned that their suggestions include reducing interest rate on running capital loaned by commercial banks, increasing export subsidy and creating a crisis fund for jute industry.

BJSA Secretary Shahidul Karim said jute spinning mills are the worst affected now as yarn is used in preparing carpets but their sales in the Western countries have dropped significantly due to a slump in real estate business.

The country earned Tk 2,200 core in foreign swap from export of jute supplies. The industry gets almost 100 percent of its raw materials nationally.

Shabbir Yusuf said foreign buyers are asking the millers to reduce prices of jute products by 15 percent, and are moving to India as it can now sell jute goods at prices 30 percent less than of Bangladesh due to devaluation of rupee.

Bangladesh Jute Mills friendship (BJMA) Chairman Najmul Huq said production cost of jute products has gone up by around 45 percent. Average price of raw jute this year is around Tk 1,200 a maund against around Tk 700 last year. Annual production of raw jute in recent years was over 60 lakh bales but this year it is estimated at around 50 lakh bales.

He noted that Indian rupee has been devalued by around 21 percent against dollars because of the recent economic meltdown in the West. “As a result, we are failing to sustain in the competition with India in exporting jute products,” he said.

An official of Bangladesh Jute Mills Corporation (BJMC) said the state-owned BJMC mills are also facing shortage of raw jute. Almost all the machines for carpet-backing clothes are lying idle, he added.

It recommended creating a crisis fund for jute industry to help it continue production.