News & Updates

19 September 2015

Source: The Financial Express

New Indian rules on jute import a non-tariff barrier, says BD

The government has found last week's notice by India on jute and jute goods import as a new non-tariff barrier (NTB) and inconsistent with the rules of the World Trade Organisation (WTO), officials said.

Dhaka has requested Delhi to revoke the new regulation as Bangladesh's jute exports are being hampered seriously because of the new rules, they added.

The new notice, which was issued on September 10, cancelled registration of Indian importers of raw jute and jute products and made mandatory fresh registration of importers, buyers' and users' levels.

It also asked importers to have no-objection certificate (NoC) for each consignment from the Jute Commissioner of India and submit details of the buyers of the imported consignments while applying for NOC.

After examining the Indian notice, the Bangladesh Tariff Commission (BTC) in a report to the ministry of commerce (MoC) said the notice is not consistent with the Article III (4) of the WTO's General Agreement on Tariff and Trade (GATT).

The Article III (4) stated that "the products of the territory of any contracting party imported into the territory of any other contracting party shall be accorded treatment no less favourable than that accorded to like products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use."

The BTC said the notice is hindering import of jute and jute products from Bangladesh into India as the new regulation turned out to be a NTB.

It said earlier India had imposed another NTB on jute bags import making mandatory marking of 'Made in Bangladesh' on the body of the product.

The BTC said the circular has created apprehension among the importers that it is not possible for them to give details of secondary or tertiary buyers. If secondary and tertiary buyers get deviated, then importers might get penalty.

Sources said Indian Jute Commissioner Subrata Gupta informed a diplomat of the Bangladesh Deputy High Commission in Kolkata that they were obliged to issue the new circular in the face of violation of Jute Packaging Material Act 1987.

Under the Act, all jute bags, which are used as packaging materials of food grains, have to be made of 100 per cent local jute. However, in many cases, the order was not followed by the jute millers.

Besides, he said, in recent years, some local jute mills were shut down due to wide allegation of using imported jute bags in public sector food grain packaging. It has created necessity of imposition of new regulation, he said.

A senior MoC official said Dhaka has already requested New Delhi to revoke the new notice allowing export of jute and jute goods to India as usual.

He said hectic efforts are there to pursue the Indian authority to suspend the notice which is hindering the exports.

"We have already voiced our concern to the Indian authority and they have taken it seriously. There are some indications that the notice may be withdrawn soon," he said.

The official said the ministry of foreign affairs has been asked for talks with the Indian foreign ministry.

Besides, the ministry of jute and textiles has been asked to take steps and if necessary, send a delegation to India, to discuss the issue with their counterparts.

He said jute goods exporters have also been asked to contact Indian importers in a bid to resolve the issue.

 

20 September 2015

Source: The Financial Express

Jute export thru Benapole halts on Indian curbs

BENAPOLE, Sept 19 (UNB): Jute export to India through the Benapole land port has come to a halt following a circular issued by the Jute Commission of India that reportedly imposed restrictive conditions on jute import to that country, according to exporters in Bangladesh.

Jute exporter Tipu Sultan, managing director of Dhaka Trading Ltd., told the news agency that Indian jute importers, as per the circular, would have to fill in a new form and take 'no objection certificates' from the commission before importing each and every consignment.

Trading in jute at Doulatpur Mokam in Khulna also remained stopped following the news of restriction on the access of Bangladesh's jute consignments to India.

Bangladeshi jute exporters expressed deep concern that the new conditions would cast a negative impact on the price of jute produced in Bangladesh.

Harun-Or-Rashid, another jute exporter of Khulna, said Indian jute farmers would be gainers due to the new measures.

"The decision will only encourage jute smuggling out of the country," he added.

According to official sources, Bangladesh exports more than 2.0-2.5 million (20-25 lakh) bales of jute to India, China and European countries.

 

20 September 2015

Source: The Financial Express

Exporters to get Tk 8.75b cash incentives

The government has released cash incentives amounting to Tk 8.75 billion for disbursement among major exporters for fiscal year (FY) 2015-16.

The Ministry of Finance on September 16 advised the Chief Accounts Officer of the Finance Division to release the fund in favour of the central bank to start disbursing the second installment from October to December.

Local exporters have been advised to seek the fund by applying to the central bank through respective banks against their exports during the period.

In the current fiscal, the government has decided to release a total of Tk 35.00 billion as cash incentives.

Of the Tk 8.75 billion cash incentives, the jute and jute product sub-sector will get Tk 1.25 billion, while other sectors will receive the rest of the amount.

During the current fiscal, the jute and jute product sub-sector will receive a total of Tk 5.0 billion cash incentives, while the rest will be disbursed among other export-oriented sectors.

At present, some 14 export sectors, including textile and apparel, frozen fish, leather products, agro-based products and agro-processing industry, halal meat, bone paste, potato, light engineering, ship and pet bottle flakes are receiving cash incentives.

Under the cash incentives programme, potato, halal meat and agro-products are getting the highest 20 per cent cash subsidy.

The small and medium garment factories are receiving additional 4.0 per cent subsidy, while 3.0 per cent are being provided to new products and new market expansion, except the USA, Canada and the EU.

The export-oriented local textiles sector is receiving 4.0 per cent alternative cash incentives instead of customs bond and duty-drawback facility.

Companies producing products from elephant grass (hogla), paddy straw (khor) and sugarcane bark (akher chobra) are given 15 to 20 per cent incentives.

Exporters of bone dust and ships are enjoying the support at the rate of 5.0 per cent.

Leather goods, light engineering and pet bottle are enjoying 12.50 per cent, 15 per cent and 10 per cent incentives respectively.

Frozen shrimp and other fish exporters are getting the support at different rate ranging from 2.0 per cent to 10 per cent, while jute products at 5.0 to 10 per cent.

In fiscal 2014-15, the government allocated Tk 34.0 billion for 14 export sectors, introduced years ago to boost competitiveness of the leading export-earning sectors.

The country earned US$ 31.20 billion in last fiscal showing a 3.39 per cent growth which also fell short of target by 6.0 per cent, according to the Export Promotion Bureau statistics.

 

18 September 2015

Source: The Financial Express

Jute export thru' Benapole port crumbles

Jute export to India through Benapole land port has come to a halt following a circular issued by the Jute Commission of India that reportedly imposed restrictive conditions on jute import to that country. The step was taken as per a circular issued by the Jute Commission of India, imposing restrictive conditions on jute import to their country, according to exporters in Bangladesh. Jute exporter, Tipu Sultan, managing director of Dhaka Trading Ltd., said that Indian jute importers, as per the circular, will have to fill up a new form and take 'no objection certificate' from the commission for importing each and every consignment. Meanwhile, jute trading at Doulatpur Mokam in Khulna remained stopped following the news of the denial of access to Bangladeshi jute consignments to be exported to India. Bangladeshi jute exporters expressed deep concern as the new conditions will cast a negative impact on the price of jute produced in Bangladesh. According to official sources, Bangladesh used to export more than 2.00-2.50 million bales of jute to India, China and European countries, according to a news agency.

 

18 September 2015

Source: www.businessnews24bd.com

Jute exports to India stopped due to import restrictions

India has imposed tougher restrictions for its jute importers leading to exports from Bangladesh being stopped, reports bdnews24.com

After getting a circular from the country’s Jute Commissioner’s Office on Saturday, Petropole port authorities did not clear any truck with jute products waiting at Bangladesh’s Benapole port to enter.

But Bangladesh authorities say they are yet to receive copy of any such order, Assistant Revenue Officer of Customs at Benapole Aminul Islam told bdnews24.com.

Meanwhile more than 100 trucks loaded with jute and jute goods have been stranded at Benapole.

“A lot of exporters have instructed trucks to return from the port,” said Tipu Sultan, whose company Dhaka Trading Ltd is one of the leading jute exporters in Khulna.

Clearing and forwarding agencies at India’s Petropole port say that the new circular has instructed them to re- register with the authorities. “Every importer has a permit, but still the new circular instructed them to obtain a no-objection certificate (NOC) from the Jute Commissioner’s Office every time a consignment is brought in,” Petropole Clearing Agent Welfare Association’s General Secretary Kartik Chakravarty told bdnews24.com.

 

14 September 2015

Source: www.bdnews24.com

Bangladesh’s concern over India’s restrictions on jute imports conveyed to New Delhi, says Indian envoy

Indian High Commission in Bangladesh has conveyed Dhaka’s concerns over the restrictions India imposed on jute imports to New Delhi.

High Commissioner Pankaj Saran on Monday said Bangladesh authorities expressed their concerns over the decision.

“We conveyed it to Delhi. I don’t have full details about the issue. I’ll get back to the Bangladesh government after getting details from Delhi,” he said replying to a question.

Saran was delivering a lecture on the recent developments in Dhaka-New Delhi relations against the backdrop of Prime Minister Narendra Modi’s June visit, and its prospects at the Bangladesh Institute of International and Strategic Studies (BIISS).

He characterised the relations now as “an active, dynamic and wide ranging”, which he said were marked by “goodwill and a problem solving approach”.

India imposed tougher restrictions for its jute importers which halted exports from Bangladesh.

After getting a circular from the country’s Jute Commissioner’s Office on Saturday, Petrapole port authorities did not clear any truck laden with jute products to enter India through Bangladesh’s Benapole port.

Assistant Revenue Officer of Customs at Benapole Aminul Islam told bdnews24.com that Bangladesh authorities were yet to receive copy of any such order.

Meanwhile, more than 100 trucks loaded with jute and jute products were stranded at Benapole on Sunday.

 

14 September 2015

Source: YNFX

Meghalaya making efforts to promote jute geotextiles

During the one-day technical workshop on ‘Applications of Jute Geo textiles in Meghalaya’ held on September 11 at Hotel Polo Towers, Additional Chief Secretary, Y. Tsering said that Meghalaya has considered jute geotextile as a potential material and has already included it in the Schedule of Rates (SoR) as the State government was committed to promote jute geotextiles.

Jute Commissioner, Union Ministry of Textiles, Subrata Gupta said that Jute geotextile has got enormous potential for solving geotechnical problems like hill slope stabilization, rural road construction and river bank protection from soil erosion.

Presentation on various aspects of jute geotextiles, design intervention, case studies on jute geotextile applications etc were presented by eminent speakers at the workshop.

The workshop was organized by Indian Jute Industries’ Research Association (IJIRA), Kolkata in collaboration with the Office of Textile Commissioner, Union Ministry of Textiles, National Jute Board, Union Ministry of Textiles and Meghalaya Infrastructure Development & Finance Corporation Ltd. (MIFDC).

 

13 September 2015

Source: www.businessnews24bd.com

Jute exports to India stopped due to import restrictions

India has imposed tougher restrictions for its jute importers leading to exports from Bangladesh being stopped, reports bdnews24.com

After getting a circular from the country’s Jute Commissioner’s Office on Saturday, Petropole port authorities did not clear any truck with jute products waiting at Bangladesh’s Benapole port to enter.

But Bangladesh authorities say they are yet to receive copy of any such order, Assistant Revenue Officer of Customs at Benapole Aminul Islam told bdnews24.com.

Meanwhile more than 100 trucks loaded with jute and jute goods have been stranded at Benapole.

“A lot of exporters have instructed trucks to return from the port,” said Tipu Sultan, whose company Dhaka Trading Ltd is one of the leading jute exporters in Khulna.

Clearing and forwarding agencies at India’s Petropole port say that the new circular has instructed them to re- register with the authorities. “Every importer has a permit, but still the new circular instructed them to obtain a no-objection certificate (NOC) from the Jute Commissioner’s Office every time a consignment is brought in,” Petropole Clearing Agent Welfare Association’s General Secretary Kartik Chakravarty.

 

14 September 2015

Source: The Daily Star

Jute exporters left in the lurch over India's policy change

Bangladesh's exports of jute and jute goods to India are in jeopardy after the neighbouring country revoked the licences of its importers and asked them to apply for new permits.

As a result, hundreds of India-bound trucks loaded with jute and jute-made products were left stranded at different ports including Benapole in the last couple of days, according to our correspondent and Bangladesh Jute Association or BJA.

India is the largest importer of raw jute and jute goods produced in Bangladesh, but the exports came to a standstill after the Office of the Jute Commissioner of India issued a notice on Tuesday.

It said it has cancelled earlier registrations of raw jute and jute products importers, so they have to sign up their units afresh.

The traders to whom they sell the imported jute and jute products and the end users will also have to register their units, it said.

The notice also said the importers have to apply for a no-objection certificate for every consignment. When applying for the NOC, the importer has to provide details of the buyer of the imported consignment.

If the importer is not the end user, all the stakeholders starting from the buyer through to the final user will have to register their units, according to the notice.

Although the notice did not mention names of any specific country, it effectively suspended imports of Bangladeshi raw jute and jute products.

The suspension will now create a negative impact on the economy and cause irreparable losses to jute farmers, the BJA said in a statement yesterday.

The ongoing volatility in the raw jute and jute goods market is a blow to jute farmers and businessmen, the BJA said.

The association urged the government to take quick steps so that the current situation does not affect the export of raw jute and jute products.

The situation may render many factories closed and thousands of workers jobless, it said.

Harunur Rashid, a jute exporter in Bangladesh, said it is impossible to get an NOC for each consignment by the Indian importers.

India does not allow imported jute or jute yarn to be used in producing jute sacking.

But all Indian jute millers produce jute sacking with imported jute from Bangladesh, he said.

Abdul Jalil, deputy director of Benapole land port, said half of the jute and jute goods exports to India are shipped through the port, but it has remained suspended since Thursday.

Bangladesh exports 20 to 30 lakh bales of jute to India through the Benapole port a year.

Indian importers have given at least Tk 117 crore in advance to Bangladeshi's jute mill owners, according to Kolkata-based Jute Products Importers Association.

Similarly, Bangladeshi mill owners have exported goods worth Tk 58 crore on credit. There are orders for jute goods worth Tk 470 crore.

Bangladesh, which is the largest producer and exporter of jute in the world, exported raw jute and jute goods worth $868 million last fiscal year, according to the Export Promotion Bureau. Of them, India imported $100 million.

 

13 September 2015

Source: Reuters

TABLE-Bangladesh jute report

Rates supplied by the Bangladesh Jute Association

JUTE

VARIETY BALES FOB Narayanganj

(One bale = 180 kg) (Taka per bale)

Ready Position (in taka) Bangla white special (BW special) 13,600 Bangla white A (BWA) 13,300 Bangla white B (BWB) 12,400 Bangla white C (BWC) 10,900 Bangla white D (BWD) 10,600 Bangla white E (BWE) 10,300 Bangla tossa special (BTS) 14,200 Bangla tossa A (BTA) 13,900 Bangla tossa B (BTB) 13,000 Bangla tossa C (BTC) 11,500 Bangla tossa D (BTD) 11,200 Bangla tossa E (BTE) 10,900

WRS/TRS, HABIJABI, CUT ROPES Bangla white rejection (BWR) 8,750 Bangla white habijabi (BWH) 6,800 Bangla tossa rejection (BTR) 9,000 Bangla tossa habijabi (BTH) 6,800

CUTTINGS Bangla white cuttings A (BWCA) 6,300 Bangla white cuttings B (BWCB) 6,100 Bangla tossa cuttings A (BTCA) 6,600 Bangla tossa cuttings B (BTCB) 6,400

MESHTA Meshta special 13,600 Meshta A 13,300 Meshta B 12,400 Meshta C 10,900 Special meshta cuttings 6,300 Ordinary meshta cuttings 6,100 Meshta- SMR 8,500

STATE OF THE MARKET--REMARKS Quality - good Condition - fair Narayanganj imports - About 2,000 Qntl. Daulatpur imports - About 5,000 Qntl. Market trend - As usual

NOTE Raw jute exports during 2013-2014 (01.07.2014 to 31.05.2015) = 778,035 bales Value 6.32 billion taka ($1 = 77.80 taka) Source: Bangladesh Jute Association, Dhaka +880-2-9552916, Narayanganj +880-2-7630904

 

01 September 2015

Source: The Echo of India

5 CFCs launched to empower women in jute sector

In order to help artisans and women self help groups engaged in jute production, the Ministry of Textiles Tuesday launched Common Facility Centres Scheme.

Under Phase I of the scheme, the ministry would set up five CFCs, three in West Bengal and one each in Assam and Bihar.

The three CFCs would be in Fulia in Nadia district, Deganga in North 24-Parganas district and Moogra in Hooghly in West Bengal while one CFC each would be set up in Assam's Barpeta and Bihar's Katihar.

"The CFC will generate self-employment opportunities for women and benefit the women self help groups (WSHGs) in rural areas formed under various schemes including the scheme operated by the National Jute Board (NJB) earlier, providing forward linkage with the market for value added products and is aimed at empowerment of rural women," Union Textiles Secretary and Chairman NJB Sanjay Kumar Panda said here on Tuesday.

Union Minister of State for Textiles Santosh Kumar Gangwar today launched the Jute CFC Scheme besides laying foundation stone of "Patsan Bhavan", a green building to house offices of NJB, Jute Commissioner, Jute Corporation of India and National Jute Manufacturers Corporation Limited.

With a budget of Rs 70 crore, Patsan Bhavan is expected to be completed within a span of 24 months.

A budget of Rs 10 crore has been allotted for the scheme under which Rs 50 lakh for each CFCs has been earmarked for the construction and development of infrastructure facility including cost of buildings and machinery, Panda said.

Besides, an amount of Rs 60 lakh for each CFC has been allotted for undertaking technical trainings, design development workshops for the artisans, he said adding that Rs 40 lakh would be earmarked for marketing activities.

An amount of Rs 50 lakh has been alloted for each CFC to provide financial assistance to the artisans for an initial period and for procurement of tools, Panda further added. (PTI)

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