The costs of the present system of price stabilization of raw jute by Bangladesh's public sector do not yield the expected benefits. Price stabilization could be better handled by the private sector. In any case, the loss of welfare to jute growers from price fluctuations is small.

Jute plays an important role in the economies of South Asian countries. In India alone it sustains some four million families. Jute: Regional Focus summarizes the jute sector in countries like India, Bangladesh, China, Nepal, Thailand, Myanmar, and Brazil. Starting from raw material availability, it mentions the consumption, production, export, and import of jute fibre and products. It also highlights the problems afflicting the jute sector like a stagnant yield, the lack of improvement in quality, the unremunerative price paid to the growers, the rising cost of production, the considerable competition from the synthetic sector, the demand erosion, the obsolescence of machinery, uneconomic working, etc. The book also discusses the competitive strength of jute against synthetics, possibilities of cost reduction, jute in relation to the environment, and the achievements of the International Jute Organisation. It also offers an insight into the implications of regional cooperation among the jute producing countries. It identifies the components of regional cooperation and investigates its importance and indispensability with reference to critical issues in the jute sector, as well as highlights the specific areas where some jute producing countries have contributed significantly. Certain examples where India has performed well in the field of diversification are given too.