Jute spinners have observed that the sector's excess capacity is causing a reduction in export earnings. Experts point out that because of about 0.1 million tonnes of carryover, spinners are being forced to reduce the price products which is giving bargaining power to importers.

According to data, in the financial year 2012-13, spinners exported 0.516 million tonnes of products worth Tk 34.96 billion, which was 0.458 million tonnes worth Tk 33.67 billion in FY'12. Every ton of jute yarn was sold at Tk0.073 million in FY'12 which reduced to Tk 0.0677 million in FY'13. Bangladesh is the key source for jute yarn in the world, supplying 90 per cent of the global requirement of nearly 0.6 million tonnes, according to the Department of Jute (DoJ).

Carpet and other handicraft industries in Iran, Turkey, Egypt, Sudan (both North and South), Syria, India and China are the main destinations for Bangladeshi jute yarn. The number of jute spinning mills has increased to 96 recently from 80 mills five years back.

According to the state-run Department of Jute (DoJ), the country now has 96 jute spinning mills, where 80,000 workers produce 0.75 million tonnes of yarn annually. The sector exported nearly 0.52 million tonnes of yarn and fetched around 650 million dollars in FY '13, which was 67 per cent of the total earnings from the jute sector.

www.motj.gov.bd