Country Report Bangladesh January 1996 Main report

Foreign Trade & Payments: Raw jute export earnings rise

The growth in exports so far in the current fiscal year is unusually low, but in the absence of a comprehensive breakdown it is not possible to identify the cause. However, raw jute earnings are reported to have risen by 21% year on year in taka terms during July-September. This was entirely due to higher international prices which reflected the decline in jute supply this year due to adverse weather conditions (see Agriculture). In this period 44,000 tons of raw jute were exported, down by 12% on the year earlier.

As a result of the shortage of raw jute, the government issued a directive in late August to ban overland jute exports (ie to India), a measure which provoked dismay among many jute exporters in Bangladesh as virtually no jute is exported to India by sea. This measure was taken to stop smuggling of raw jute to India, which has also experienced a large production shortfall this year.

© 1996 The Economist lntelligence Unit Ltd. All rights reserved
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