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Despite fetching good prices at the beginning of the season, jute farmers in Rajshahi are now in distress due to a sudden fall in market prices. At Naohata jute market in Paba Upazila, the price of jute has dropped by approximately BDT 800 to BDT 1,000 per maund within a span of two weeks. Farmers are now concerned about covering their production costs and achieving their desired profits.
Farmers from various surrounding areas flocked to Naohata market with their jute early on Monday and Thursday mornings. Freshly harvested and processed jute was brought in by vans, nasimans (three-wheeler cargo vehicles), and bhutbhutis (local motor-driven carts). However, many farmers are returning home without selling their jute as they are not receiving their expected prices in the market.
According to market insiders, just a couple of 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 of jute has plummeted to approximately BDT 3,200 to BDT 3,500. This significant drop has resulted in a substantial reduction in farmers’ income per maund of jute in a short period.
Saiful Islam, a farmer from Padma Char area in Paba Upazila, brought 65 maunds of jute to the market this time. Previously, he had sold the same quality of jute for BDT 4,000 per maund. Expressing frustration over the current market price, he stated, “The price offered now is significantly lower than what I received just a few days ago. Cultivation costs have increased, and if jute prices fall this much, farmers will not make any profit.”
Babu, a farmer from Darusha area, is facing a similar situation. He brought approximately 149 kg of jute to Naohata market and was offered BDT 3,400 per maund by traders. Not getting his desired price, he took the jute back home without selling it. He explained that he had sold jute for BDT 4,000 per maund last time and had hoped for a similar price this year. However, due to the lower prices offered by traders, he did not sell, fearing losses. He has more jute at home and will bring it to the market if prices increase slightly.
Salman Ali, a farmer from Keshorehat area in Mohanpur, also took his jute back for the same reason. He had brought four and a half maunds of good quality jute to the market, expecting BDT 4,000 per maund. However, as traders were only willing to offer a maximum of BDT 3,500, he returned without selling.
Farmers allege that a group of traders is attempting 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 might drop further as supply increases in the middle of the season. However, traders state that the primary reason for the fall in market prices is increased supply. Milon Ali, a jute trader from Naohata, said, “In mid-July, jute supply in the market was low, forcing us to buy at higher prices. Now, with new jute arriving, supply has increased. Naturally, prices have decreased slightly. Many traders also have stocks of jute bought at previous higher prices.”
Amal Das, the leaseholder of Naohata Jute Market, informed that jute buying and selling take place every Monday and Thursday from dawn until 8 AM. Approximately 2,000 maunds of jute are traded in each market session on average. Currently, jute prices range from BDT 3,200 to BDT 3,500, depending on quality. Nadim Akter, Assistant Director of the Department of Jute, 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 influences local market prices based on their purchasing volume. When mills buy more jute, demand increases; conversely, less buying impacts the market.
He further added that Rajshahi is expected to produce approximately 381,696 quintals of jute this year. Last year, production was 360,494 quintals, meaning an increase of about 21,202 quintals is anticipated this year. Mohammad Nasir Uddin, Deputy Director of Rajshahi Department of Agricultural Extension, stated that 18,399 hectares of land were cultivated for jute in the district this current season, compared to 17,305 hectares last year. This marks an increase of 1,094 hectares in cultivation over 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.
Despite a good yield, there was an expectation of relief among jute farmers this season. However, this hope has been dampened by the price drop experienced at the market. Farmers are now demanding that a fair market price for jute be ensured, considering their production costs, so that they do not face losses even after a good harvest.
