New imports delayed due to Monsoon
Accountmanager Export
Martin Wigger
India & Bangladesh are used to heavy monsoons. But this year it is truly exceptional. The monsoon is the periodic wind that blows from a certain direction for a six-month period, turning about 180 degrees. This transition between these monsoons is called the monsoon reversal. Due to the change of wind direction, another air type is also introduced, which greatly changes the weather image.
Agro de Arend has direct purchasing lines in India and Bangladesh. Due to these short purchasing lines, Agro de Arend can guarantee the best price and, more important, control the quality processes. The risk of the monsoon is well reflected by looking at the harvest of the jute. Last year, the harvest of jute was reduced by prolonged drought over the years, while this year the jute capacity is threatened by all the water and light weight crop of the one-year old jute plant. This year the harvest is smaller because it was drier in the months of June to August as previous years. Due to the severe monsoon rainfall in August, the capacity of raw jute is threatened. Stocks are lost due to flooding’s of the factories and storage facilities.
The supply of jute is starting up slowly this season. Jute is a natural product that is also widely applied in the automotive industry and other sectors. The global demand for jute is unprecedented. When supply and harvest and yields fall short and demand is not reversed, the law of supply and demand applies. We see that the cost of raw material is rising. To date, we, as an importer, can still keep the price increases within the limits. How price develops for the future is still difficult to predict.
The first sea containers have already been unloaded and this ensures that all clients, before lifting season kicks off , can be supplied. The jute hessian squares are available in 3 grades, called the "Standard", "Medium" and "Heavy" quality.
Ask your contactperson at Agro de Arend which quality standard suits you best. We like to think together with you.
