Jute prices in Bangladesh are currently lower than what they were at the same time last year due to declining exports of twine and yarn made from the natural fibre, according to growers and traders.

Prices of raw jute have fallen by roughly 26 per cent year-on-year to as low as Tk 2,000 to Tk 2,600 per maund (37 kilogrammes) in Faridpur, one of the country's main growing districts, compared to Tk 2,600 to Tk 3,200 for the same quantity in December last year.

Jute farmers, traders and millers have linked the drop in prices to the lack of demand for jute and jute products in the global market.

Exports of jute and jute goods declined 11 per cent year-on-year to $406 million in the July-October period of the current fiscal year, showed data from the Export Promotion Bureau.

Jute yarn, which roughly contributes two-thirds of the total export proceeds, recorded a 20 per cent slump in export earnings during the period, eroding demand among local spinners.

"I sold two maunds of jute at a local market for Tk 2,600 per maund two days ago. This is the highest price in the market now. But last year, I got as much as Tk 3,200 per maund," said Thouhid Khan, a jute grower from Ramkantapur village under Saltha upazila of Faridpur.

Farmers got 82 lakh bales of raw jute during the harvest midway through the year, which was marginally down from the previous year's production level, according to the Department of Agricultural Extension.

Abdul Goffar, another jute grower from the same village, got a total of 50 maunds of jute this year. He then sold 20 maunds of the fibre at Tk 2,800 per maund.

"I kept the rest in hopes of making better profits during the ongoing lean season. But this year, jute is being sold at a very low price compared to the last two years," he said, adding that he sold each maund of jute for Tk 3,200 last year while it was Tk 3,800 to Tk 4,000 in 2020.

Kholil Mollah, a jute grower of Talma village under Nagarkanda upazila, said he cultivates jute by leasing land.

"Last year, I leased 14 decimals of land from at Tk 16,000 for cultivating jute. I got 5 maunds of jute after spending another Tk 10,000," he said.

However, Mollah will be unable to lease any land for growing the fibre next year as he only got Tk 11,000 for his entire harvest just two days ago.

Abdul Halim Matubbar, a jute grower of Chowlia village under the same upazila, said he cultivated jute on three bighas of land this year to get 42 maunds.

He then sold 10 maunds of jute at Tk 2,500 per maund last Wednesday at a local market.

Matubbar went on to explain that he will take any price for their jute not as they need the money to start cultivating onion.

"We heard the jute market has declined globally and that's way the prices have decreased," he added.

Riyad Sardar, a resident of Atghar village in Saltha upazila, said he bought 30 maunds of jute for Tk 3,200 per maund last September.

"So, I thought that I would sell jute at Tk 4,000 to Tk 4,500 per maund this year but now, the situation of jute market is so bad that I cannot get back my capital." Sardar added.

Md Sumon Mia, a jute trader of Moyendia Bazar under Boalmari upazila, said jute price have decreased as the demand for jute thread, hessian, jute bags and cloth has fallen in world markets.

So, mill owners are not buying jute from the market, which is impacting farmers and traders.

Rubel Hossain, a jute trader of Kanaipur Bazar in Faridpur sadar upazila, said traders like him are losing their capital due to the low prices.

"A few days ago, I sent a truck of jute to a mill that previously bought it at Tk 2100 to Tk 2250 per maund. This time though, I got a price of Tk 2,050 per maund. After that, I did not buy any more jute," he added.

Last year, Bangladesh exported a good number of jute and jute products, ensuring good profits for farmers and traders.

This year though, farmers did not get good quality jute fibre due to the lack of rain and as a result, the prices are very low compared to what they were for the last few years, said Arifujjaman Chan Mia, another trader of Kanaipur Bazar.

"We have to think several times before buying a maund of jute from the market as mill owners do not want to buy it with high price," he added.

Khokon Mollah, also a trader of the same jute market, said they are currently not selling any jute to mills as the millers are only buy small amounts to run their operations.

"For this reason, the price of jute has fallen," he added.

Gomal Saroyar, chief inspector of the Department of Jute in Faridpur, said the price of jute thread has decreased in various export markets.

As such, millers and shippers have already reduced their jute purchases from local markets.

Jahangir Hossain Mia, chairman of Karim Group, said the jute market has been adversely affected by the ongoing global economic concerns, such as those stemming from the Russia-Ukraine war.

"In all the countries of the world where there was a market for jute products made by our country, the demand has decreased due to economic reasons. Jute carpets were in high demand in Middle Eastern countries, but that demand has declined in many areas," he added.

Hossain then said different countries are taking various steps from the government level to maintain their jute market.

"So, our government should take various steps to maintain the jute market of our country," he said.