Jute imports up 24%, exports dip 22% in Apr-Jan FY15

Jute imports ups the country's jute sector continues to face double whammy as imports of finished goods have jumped by 24 percent, while exports have declined by 22 percent in the April to January period of financial year 2014-15.

"According to National Jute Board estimates, jute exports for the period April-January of FY15 have declined sharply to Rs 1,115 crore, down 22 percent in rupee terms and 20 per cent in dollar terms as compared to corresponding period of FY14," said a senior official of Indian Jute Mills Association (IJMA).

In terms of quantity, the decline was 37 percent, or 98,500 tonnes, during the April-January period over the corresponding period of FY14.

Regarding import of jute products, there was a jump of 24 percent, or Rs 511 crore, in value terms for such products in April-February period of FY15.

The unfavourable trend seems to be gaining momentum as in February 2015 alone, imports were higher by 75 percent in value terms and 79 percent in volume terms as compared to the corresponding month of the previous year.

IJMA sources have attributed higher imports to lack of monitoring and check in end-use of jute products.

On top of this, a subsidy of 7.5 percent by Bangladesh for export, has resulted in flooding into Indian market.

When the government rate is Rs 63,000 a tonne for jute, the same product is available at Rs 53,000 a tonne in the open market, they said.