Many of you may have not thought such, but the truth is US sanction on Iran is hampering Bangladesh economically! Yes, export of jute and jute products from Bangladesh has dropped down sharply due to the sanction., reports fibre2fashion.com.
Quoting the Export Promotion Bureau (EPB) of Bangladesh the website reports that export of jute and jute products to from Bangladesh decreased to US$ 889.45 million during July-May 2011-12 that is 11 percent lower than the corresponding period of previous fiscal year. During the same time frame in 2010-11 fiscal Bangladesh had exported jute goods and products worth US$ 1 billion. According to the fibre2fashion.com “The sanctions imposed by Western countries against Iran, is one of the reasons for decline in Bangladeshi jute exports, as Iran is one of the major importers of Bangladeshi raw jute and jute goods.”
Until fiscal 2010-11, exports of Bangladeshi jute and jute products to Iran increased gradually, says the report. “But post-sanctions, exporters are finding it difficult to realize payments as most of the banks through which the export payments were collected so far have been blacklisted.”
“The financial crisis in Europe, political turmoil in some Middle East countries, floods in Thailand, earthquake in Turkey and fears of global recession are also cited by exporters as the reasons for sluggish demand for Bangladeshi jute and jute items.” Growth of raw jute exports dropped by 26.51 percent in fiscal year 2011-12, which ended on June 30, compared to growth of 53 percent achieved in 2010-11, EPB data showed.