Raw jute imports jump 79%

The imports of raw jute have gone up by 79 per cent between April and December 2007 to 151,000 tonnes from 84,287 tonnes a year ago, according to figures released by the Jute Manufactures Development Council (JMDC).

In value terms, jute worth Rs 171 crore was imported during April-December 2007, up 27 per cent from Rs 134.68 crore in 2006. The country imports mostly from Bangladesh under the open general licence (OGL).

On the products front, imports have come down marginally. Total imports of jute products were 40,059 tonnes, down 1 per cent against a year ago. In value term the imports declined 14 per cent to Rs 96.40 crore. The government has recently removed the duty on imports of jute and jute products.

There is a strong apprehension in the jute industry that imported jute goods might take over 10-15 per cent of the Indian market, hitting the domestic sector. The domestic market for jute products is valued at Rs 6,000 crore.

India's export markets stand at around Rs 1,000 crore. However, the country is fast losing out its markets in Europe and USA to Bangladesh and there are fears that the value may drop to Rs 650 crore.