28 August 1998
INDIA and Bangladesh, the worlds two biggest producers of jute, are harvesting a poor crop this season – which runs from July this year to next June.
More than 5 million farmers engaged in jute cultivation in the two countries reduced by 30% the land they had committed to the crop for 1998/99 after last years record year when prices slumped.
Prices of the better grades are expected to rise sharply as a result of the shortage of supply. The Indian jute crop is expected to fall to 7.5m bales of 180kg each from 10.7m bales last year.
Bangladesh is expected to turn in 5m bales against the 6.5m bales achieved last year.
There is expected to be a shortage of Bangladeshi jute. European and US factories will see shortages.
- Raw jute prices collapse in India and Bangladesh, FWi, 20 February, 1998
- India to export raw jute to arrest price fall, FWi, 14 August, 1997
- Financial Times 28/08/98 page 24