E-Kantipur

BIRATNAGAR, SEP 13 -

A rise in the price of raw jute has got industrialists in Biratnagar holding their heads in their hands as it has sent their production cost soaring.

The price of jute imported from Bangladesh has jumped to Rs. 50,000 per ton from Rs. 30,000 last year. According to the industrialists, the price hike is due to reduced output caused by a drought in Bangladesh.

While production costs have gone up, importers of the finished products in India have balked at raising the rates. India is the main market for Nepal’s jute products.

Raj Kumar Golchha, president of the Jute Industries Association, said they would cut production or even shut down their factories if they did not get reasonable prices for  their products.

Meanwhile, jute production has increased in the country. Farmers have produced 40,000 tons of jute this year as compared to 28,000 tons last year. India, Bangladesh and Nepal among the SAARC nations are involved in commercial production of jute.

Mohan Chandra Ghimire, an expert, said there were eight jute mills in the country which required 80,000 tons of jute annually. “Domestic production of jute fulfils the requirement of raw material for barely four months,” he said.

Ghimire demanded that the government provide seeds and subsidized fertilizer to farmers to reduce the country’s dependency on imported jute.

Nepali jute products like sacks, sutali and thin sacks are sold for IRs. 47,000, IRs. 41,000 and IRs. 53,000 per ton respectively.

Posted on: 2010-09-13 09:40

Post Your Comment

Please note that all the fields marked * are mandatory.
* Full Name
* Address
* Email Address
* Comment
* Captcha	Get another CAPTCHA code
Note:	Comments containing abusive words or slander shall not be published.