The world's six major jute-producing nations may decide to set up an organisation to regulate world jute prices.
GV PAN Delegates from jute-producing nations seated in conference hall in Dacca, Pakistan.
SV Special representative of the Food and Agriculture Organisation (FAO), Jurgen Wolf, addressing delegates. (3 SHOTS)
GV Banner behind main speakers' table.
SV Bangladeshi Minister of Agriculture, Major General Nurul Islam, addressing delegates. (3 SHOTS)
Bangladesh has proposed that the Organisation for Jute Producing Countries (OJEC) should function along similar lines to OPEC. Jute producing nations favouring the plan say it is essential to ensure their survival. But India says it has reservations about OJEC as it could impair the formation of the International Jute Organisation, now under negotiation in Geneva.
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Background: The world's six major jute-producing nations may decide to set up an organisation to regulate world jute prices. The six countries attended a conference in Bangladesh recently where the question of unified action to help restore the value of jute on the international market was discussed. Jute is vital to the economy of Bangladesh, accounting for 70 percent of its annual income. In the case of Nepal, jute accounts for 30 percent of its foreign exchange earnings. India and Burma also contribute to the 900-million U.S. dollars earned every year by the jute producing countries.
SYNOPSIS: On Thursday (25 September), the conference delegates discussed the possibility of forming an organisation to relate prices, arrange marketing and distribution to consumer countries. This had been proposed by Bangladesh.
A special representative of the Food and Agriculture Organisation, Jurgen Wolf, painted a gloomy picture of the world jute market. Unless producing countries formulated a clear strategy, he said, there could be trouble ahead for countries like Bangladesh and India which produce two thirds of the world's jute.
Delegates blamed Western consumer countries for the current plight of the jute market. Bangladesh's Agriculture Minister, Nurul Islam, said the export price of jute had been virtually stationary for the past ten years. The prices of other commodities had, meanwhile, increased several fold. The price of jute, he said, was unfortunately dictated by consumers -- and not producers.