Dhaka, Sept 21 (UNB) – Although the jute mills and raw jute exporters have so far purchased about half of their demands this year, most of the farmers, frustrated with the almost stagnant price over the last month, have already sold out their produce to the middlemen.

Sources at the Bangladesh Jute Mills Corporation (BJMC), Bangladesh Jute Mills Association (BJMA), Bangladesh Jute Spinners Association (BJSA) and Bangladesh Jute Association (BJA) said they are yet to achieve even 50 percent of their targeted purchase.

But market sources reveal that about 80 percent of the jute harvest has been sold out at the farmers’ level.

Talking to UNB, BJMC general manager (raw jute purchase) Md Hanif said public jute mills have so far purchased 5.35 lakh bales of jute, mostly the cross-grade, at the average rate of Tk 1,469.53 per maund, starting from July 1 to September 19.

“We’ve already purchased about 44 percent of the 12.2 lakh bale of the purchase target this fiscal. The pace of the purchase is quite satisfactory this year as we’ve managed to purchase about 41 percent of the total target during the same time last fiscal,” he said.

Hanif said although the jute price at the farmers’ level has remained quite stagnant over the last month, the purchase price for the mills has increased a bit over the same period.

Last month, the purchase price for government jute mills hovered over Tk 1,250 to Tk 1,300 per maund while the price has leapt a bit over Tk 1,400 this month, he said.

He said right now it is very difficult to speculate the market price in the coming days. “As the farmers have sold out most of the harvest to the local markets, the jute price will now depend much on the motif of the traders on the upper tier.”

“Public mills are now suffering from a fund crunch and cannot readily accelerate the rate of the purchase, although the price still remains reasonable for the mills,” he added.

BJMA secretary A Barik Khan told UNB that privately owned jute mills have so far managed to achieve only 10 percent of the targeted purchase.

“Right now, the price is suitable for both the millers and the traders, but the mills are facing hurdles in taking loans from the banks this year due to the apathy of officials following the Hall-Mark scam,” he said.

BJMA targeted to purchase about 10 lakh bales of raw jute this year.

Barik said BJMA mills are now buying the jute at prices rangig from Tk 900 to Tk 1,700 from agents at Mokams (big wholesale markets).

BJA member Md Shaid Hossain said the raw jute exporters and traders are buying the Tossa (medium quality) jute at prices from Tk 1,500 to 1,650, while Desi jute at Tk 900.

Traders under the BJA have a target of purchasing about 20 lakh bales of jute this season, he said, adding that the pace of purchase is very slow this year.

UNB Maymensingh correspondent says: Farmers sold out the low grade jute to the traders at Tk 700 per maund and the top grade jute at Tk 1,000 per maund last week.

The prices at which the mills are buying the jute from their agents at the Mokams are about Tk 200-300 higher than the price the farmers got, he added.

Market sources across the country reveal that the jute price in Mymensingh and in most of the northern districts remains the lowest over the last two weeks, while the price in Faridpur and its adjacent districts remains the highest.

According to Field Service Wing (FSW) of Department of Agricultural Extension, the acreage of jute cultivation this season has reduced to 6.7 lakh hectares from the last years’ coverage of 7.2 million hectors.

As the farmers incurred huge losses in jute prices over the last two years they reacted by shifting from the cultivation this season, said FSW director Mukul Chandra Roy.

DAE forecasts that the production of jute this year will be around 70 lakh bales compared to 76 lakh bales last year, he said.