Jute farmers in Rajshahi are in distress as market prices have suddenly plummeted, despite receiving good prices at the beginning of the season. At the Naohata jute market in Poba upazila, the price of jute per maund has decreased by approximately BDT 800 to BDT 1,000 within two weeks. This has left farmers concerned about recovering their production costs and achieving desired profits.
Farmers from various surrounding areas crowded the Naohata market with jute early on Monday and Thursday mornings. Freshly cut and processed jute was brought in by vans, nasimons, and bhotbhoti (local motorized vehicles). However, many farmers are returning home without selling their jute, as they are not getting the expected prices in the market.
According to market insiders, just two weeks ago, jute was selling for BDT 4,000 to BDT 4,500 per maund, depending on its quality. Currently, the price for the same quality jute has dropped to approximately BDT 3,200 to BDT 3,500. Consequently, farmers’ income per maund of jute has significantly decreased in a short period.
Saiful Islam, a farmer from Padma Char area of Poba upazila, brought 65 maunds of jute to the market this time. Earlier, he had sold jute of the same quality for BDT 4,000 per maund. Expressing frustration over the current market price, he said, “The price being offered now is much lower than what I sold jute for just a few days ago. Cultivation costs have increased, but if jute prices drop like this, farmers won’t make any profit.”
Babu, a farmer from Darusha area, faces a similar situation. He came to Naohata market with approximately 149 kg of jute and was offered BDT 3,400 per maund by traders. Not getting the desired price, he took his jute back home without selling it. He stated that he had sold jute for BDT 4,000 per maund last time and hoped for a similar price this time. However, fearing losses due to the low prices offered by traders, he did not sell. He has more jute at home and will bring it to the market if prices increase slightly.
Salman Ali, a farmer from Keshorhat area of Mohanpur, also took his jute back for the same reason. He brought four and a half maunds of good quality jute to the market, expecting BDT 4,000 per maund. However, as traders were willing to offer a maximum of BDT 3,500, he returned without selling.
Farmers complain that a certain class of traders is trying to buy jute at lower prices, taking advantage of the arrival of new jute in the market. This leaves farmers with very little profit compared to their production costs and labor. They also fear that prices will drop further as supply increases in the middle of the season. However, traders state that the main reason for the drop in market prices is increased supply. Milon Ali, a jute trader from Naohata, said, “In mid-July, we had to buy jute at higher prices due to low supply in the market. Now, with new jute arriving, the supply has increased. Naturally, prices have decreased somewhat. Many traders also have stock of jute bought at previous higher prices.”
Amal Das, the leaseholder of Naohata Jute Market, informed that jute is bought and sold at the market every Monday and Thursday, from dawn until 8 AM. On average, about 2,000 maunds of jute are traded in each market session. Currently, depending on quality, jute prices range from BDT 3,200 to BDT 3,500. Nadim Akter, Assistant Director of the Jute Department, Rajshahi, stated that jute prices primarily depend on market demand and supply. Currently, there is no government-fixed purchase price for jute. The presence of several jute mills in the Naohata area also impacts local market prices, depending on the volume of jute purchased by these mills. If the mills buy more jute, demand increases; if they buy less, it affects the market.
He further informed that Rajshahi has the potential to produce approximately 381,696 quintals of jute this year. Last year, the production was 360,494 quintals, meaning an increase of about 21,202 quintals is expected this year. Mohammad Nasir Uddin, Deputy Director of the Department of Agricultural Extension, Rajshahi, reported that jute has been cultivated on 18,399 hectares of land in the district this season. Last year, cultivation covered 17,305 hectares, indicating an increase of 1,094 hectares in one year. Farmers who cultivated early varieties of jute received good prices. However, when a large quantity of jute enters the market simultaneously, prices tend to fall due to increased supply.
With good yields, there was an expectation of relief among jute farmers this season. However, this hope has been dashed by the price drop experienced at the market. Now, farmers are demanding that a fair market price for jute be ensured, considering their production costs, so that they do not face losses despite a good harvest.