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| Kathmandu, Sunday February 02, 2003 Magh 19, 2059. |
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Raw material scarcity due to
decline in jute farming
Post Report
BIRATNAGAR, Feb 1 : Nepali jute industries are
facing a severe scarcity of jute, the required raw material of these industries following
the gradual decrease of jute production in the country. The domestic production of jute
has been declining after most jute farmers preferred to cultivate other crops owing to the
low earnings on raw jute.
The domestic jute industry, which had a
sufficient supply of jute from local growers until a few years ago, is now compelled to
procure the raw material from abroad. These industries are importing around Rs one billion
worth of jute in recent times following the drastic drop in jute farming in the country.
While the demand of the jute industries stand
around 72,000 ton, the domestic supply of raw jute however comes to around 16,000 ton
only. According to officials of the Nepal Jute Association, jute imported from India and
Bangladesh help to cover 85 per cent of the demand of the local jute industries.
The probable reduction of jute farming, says
Jute technician Rangalal Uppadhaya, is due to the traditional farming methods which
results in low production, lack of subsidisation, along with the absence of any
promotional programmes from the government. Besides this, the entrance of large quantities
of Indian and Bangladeshi jute, which are priced at comparatively lower rates has
aggravated the problem of Nepali jute farmers.
Besides the lack of required raw material in the
country, the local jute industries are also facing the problem of low demand of jute
products in the country following the public preference for plastic products. The low
demand of jute products in the domestic market has compelled the jute companies here to
export over 90 per cent of their product.
According to recent statistics published by
International Jute Oragnisation (IJO), jute production in Nepal is the highest in cost
among the jute manufacturing countries. As per the data, Bangladeshi and Indian farmers
are better off in jute farming with various financial supports from the government.
Moreover, the Indian jute farmers enjoy as much as 30 per cent margin on the sales of the
output of jute, states the official statistic of IJO.
The decline in jute farming is also due to the
change in the perception of farming, says Surya Prasad Uppadhya, Chief of Jute Research
Programme (JRP) based in Itahari. "The farmers now cultivate jute not for commercial
purpose as in previous days but only for their household use," he adds.
Morang has been identified as the most fertile
land for jute cultivation, according to the JRP. While 60 per cent of the land of Morang
has been stated as favourable for jute cultivation, Sunsari and Jhapa however stands in
second and third position with 20 per cent and 10 per cent of their land being suitable
for jute farming.
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