Bangladesh has withdrawn a ban on the export of raw jute with immediate effect amid protests by importers, in an effort to ensure a reasonable price to growers, a senior official said on Sunday. "The ban has been lifted to boost income of the jute sector and ensure the growers get a reasonable price," said Saifuddin Majumder of the ministry of jute and textile.
Bangladesh imposed the ban early in December, citing poor yields following an erratic monsoon. But the move displeased jute farmers as prices of raw jute fell in local markets, officials said. Germany, one of main jute importers from Bangladesh, also opposed the ban, saying car plants using "staple" fibre from jute would face difficulties due to Dhaka's decision. Car makers Mercedes, Volkswagen, Ford and Opel in Germany use staple fibre produced from jute for the insulation of doors.
Bangladesh, the world's largest jute growing country, produces around 5.5 million bales of jute each year. "We insist Bangladesh (should) continue its policy (of exporting jute) to keep foreign investors happy and avoid any confusion," said Mohammad Saiful Islam, president of the Bangladesh-German Chamber of Commerce and Industry.
Bangladesh earns nearly $350 million annually by exporting raw jute and jute goods of which more than 20 percent comes from Germany. Germany is the second-biggest export destination for Bangladesh after the United States and the total investment of Germany in Bangladesh is about $1 billion, officials said.
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