Kolkata: Prices of raw jute and jute goods have fallen in the local market here following duty-free imports from Bangladesh. Run-up to Budget 2008-09
The benchmark TD4 grade of raw jute, which found takers at Rs 1,250 per quintal in December 2007, slipped to a level of Rs 1,170 per quintal at one point of time in January this year. On February 15, 2008, the TD4 grade of raw jute was quoted at Rs 1,180 per quintal at the Jute Balers’ Association here.
The Centre, in a notification issued on December 31, 2007, had withdrawn the import duty on several items, including raw jute and jute goods, on imports of the same from Bangladesh, Bhutan, Maldives and Nepal. Till December 31, 2007, the effective customs duty on imports of raw jute and other jute goods was 6.88 per cent and 9.63 per cent, respectively.
According to informed sources, raw jute production and consumption in India has generally hovered around 100 lakh bales (each bale is 180 kg) annually. Bangladesh produces 40-45 lakh bales every year. Of this, nearly 25-30 lakh bales are exported to countries in the Gulf and Europe, besides Pakistan and India. Generally, India imports 5-6 lakh bales of good quality raw jute from Bangladesh every year. Besides, some quantity of raw jute is also smuggled through border routes.
Golden fibre
With the import duty on raw jute and jute goods abolished, an increased quantity of the golden fibre is likely to be imported from Bangladesh now, say sources in the raw jute trade.
According to them, seven lakh bales of raw jute have already been imported from Bangladesh and another 1-2 lakh bales were likely to come in by March-end this year. In 2006-07, 94,363 tonnes of raw jute and 60,932 tonnes of jute goods were imported from Bangladesh through the Petrapole border in West Bengal.
The sources said Indian traders who import sacking and yarn from Bangladesh are now finding these goods cheaper by about 10 per cent.
However, the quality of the jute bags imported from Bangladesh was suspect as they do now always conform to prescribed batching oil content as also quality standards specified by the Bureau of Industrial Standards.
The benchmark TD4 grade of raw jute, which found takers at Rs 1,250 per quintal in December 2007, slipped to a level of Rs 1,170 per quintal at one point of time in January this year. On February 15, 2008, the TD4 grade of raw jute was quoted at Rs 1,180 per quintal at the Jute Balers’ Association here.
The Centre, in a notification issued on December 31, 2007, had withdrawn the import duty on several items, including raw jute and jute goods, on imports of the same from Bangladesh, Bhutan, Maldives and Nepal. Till December 31, 2007, the effective customs duty on imports of raw jute and other jute goods was 6.88 per cent and 9.63 per cent, respectively.
According to informed sources, raw jute production and consumption in India has generally hovered around 100 lakh bales (each bale is 180 kg) annually. Bangladesh produces 40-45 lakh bales every year. Of this, nearly 25-30 lakh bales are exported to countries in the Gulf and Europe, besides Pakistan and India. Generally, India imports 5-6 lakh bales of good quality raw jute from Bangladesh every year. Besides, some quantity of raw jute is also smuggled through border routes.
Golden fibre
With the import duty on raw jute and jute goods abolished, an increased quantity of the golden fibre is likely to be imported from Bangladesh now, say sources in the raw jute trade.
According to them, seven lakh bales of raw jute have already been imported from Bangladesh and another 1-2 lakh bales were likely to come in by March-end this year. In 2006-07, 94,363 tonnes of raw jute and 60,932 tonnes of jute goods were imported from Bangladesh through the Petrapole border in West Bengal.
The sources said Indian traders who import sacking and yarn from Bangladesh are now finding these goods cheaper by about 10 per cent.
However, the quality of the jute bags imported from Bangladesh was suspect as they do now always conform to prescribed batching oil content as also quality standards specified by the Bureau of Industrial Standards.
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