Problems of Jute Marketing in East Pakistan

Abstract

Jute constitutes the largest item in the export market of
Pakistan. At present Pakistan is facing a number of difficulties with
respect to jute trade due mainly to the emergence of substitutes and
powerful competitors in the world market. While these are the factors
affecting long term demand for Pakistani jute, there also exist other
important problems associated with jute. The most urgent among them is
the marketing of jute. Jute marketing problems arise from economic and
physical conditions that are primarily external to individual producers.
But the problem of reducing the spread between producers' and consumers'
prices is as important as that of reducing production costs. The world
demand for raw jute is based on the fact that this fibre is the cheapest
packing material in the world. To sell the huge amount of jute that the
country produces, the supply price will have to be kept sufficiently
low. To keep the supply price low both production costs and marketing
costs will have to be kept low.