Drought threatens jute crops

27 April 1999

Drought threatens jute crops

DROUGHT has hit soil preparation and sowing work for jute in India and Bangladesh making a worldwide shortage increasing likely.

The expected shortage has immediately fed through to prices in India and Bangladesh two of the largest producers of the commodity.

The price of benchmark grade TD-4 has risen nearly 10% to Rs10,150 ($237) a tonne.

Trade official say India and Bangladesh will start the 1999-2000 season with much lower stocks of fibre.

Larger quantities of new jute will only come on to the market from mid-August.