Slump In Jute Exports To Gulf Feared

The fear is generated mainly because of imposition of war surcharge on jute goods export to the Gulf region and Europe.

Besides, transshipment of jute products will be affected by the battle in the region.

Reacting to the US attack on Iraq, an industry spokesman said at present there was no bulk consignment for the West Asian countries.

However, consignments to Europe will be affected if the Suez Canal was blocked, he said.

The spokesman said Indian jute was exported to almost all the countries in the Gulf region, except Iraq and Iran. Transshipment of jute goods to Iraq was arranged by agents in Dubai.

 

He said there had been a bumper jute crop in the country this year.

As a result, the production of jute goods was slated to go up. But the outbreak of war might cause a slump.

However, all will depend on how long the battle continues, he said.

During the 1991 Gulf War, there was stiff opposition from the trade unions owing allegiance to the Left parties, especially those in Calcutta and Haldia, over dispatch of jute bags to the region on the ground that they were being used for packing weapons.

Industry sources said jute bags were mainly used for protective purposes by filling them with sand.