DNFI Opposes Jute Export Ban by Government of Bangladesh

The Ministry of Textiles and Jute of the Government of Bangladesh introduced a “temporary” export ban on jute and meshta effective November 3, 2015. All unshipped export contracts were affected by this measure. On 6 January 2016, the Bangladesh Ministry of Textiles and Jute announced that 277,000 bales (about 50,000 metric tons) of raw Jute (and meshta) is exempted from the export ban since contracts covering that quantity were concluded with foreign buyers, and letters of credit had been opened, before November 3. However, contracts for which letters of credit had not been opened prior to the announcement of the ban will not be permitted to be shipped. Industry sources suppose that the ban may remain in force until June 30, 2016, the end of the current jute season.The DNFI strongly opposes all government measures that undermine demand for natural fibres and encourage the substitution of synthetic fibres, for which there are no trade disruptions.

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