Prices of raw jute are rising in the domestic market due to illegal hoarding by traders aiming to export the commodity, Textiles and Jute Adviser Sk Bashir Uddin said on Sunday.

He said a section of traders has started illegally stockpiling raw jute, destabilising the market as exports increase.

The adviser made the remarks during a meeting with leaders of the Bangladesh Jute Spinners Association (BJSA) at his office in the Ministry of Commerce.

“As a result, jute prices are rising continuously. Farmers are not benefiting from this; rather, hoarders are making profits by creating disorder in the jute market,” he noted.

Warning of serious consequences, Sk Bashir Uddin said failure to curb illegal hoarding would harm genuine jute growers and all stakeholders involved in the jute sector, ultimately causing losses to the national economy. He stressed the need for immediate action to stop hoarding practices.

The adviser said the government would adopt a zero-tolerance policy against illegal stockpiling of jute and would soon take legal action in four major jute-producing districts to prevent hoarding.

He also said steps have been taken to address the shortage of quality jute seeds in the current season, assuring that there would be no seed crisis.

Textiles and Jute Ministry Secretary Bilquis Jahan Rimi, BJSA President Tapas Pramanik, Vice Chairman Faruk Hossain, Board Director Mohammad Shahjahan and Helal Ahmed were present at the meeting.