Output is likely to be around 35 lakh bales this year but the losses on account of flood havoc could increase rapidly as the government assessment is yet to be completed, Bangladeshi jute minister AK Faizul Haq has said.

"The true picture would emerge only after the waters recede," Haq said. Officials in the agriculture ministry put the losses at around 356 crore taka due to damage of standing crop, machines and infrastructure.

Bangladesh, which is the leading jute exporter worldwide, earned about Rs 1,250 crore last year through export of jute and jute products.

The minister estimated the country's trade loss due to the damage to crops, raw jute and finished goods at about Rs 95 crore and said governmental efforts were on to restore the top place for the country in the world jutemarket.

"We are considering assistance to jute goods manufacturers and spinners besides special steps for exporters in a bid to normalise activities in the sector and maintain our hold over the world markets," Haq told reporters. The minister said crop loss was estimated around two lakh bales but officials fear that actual damage could be much more as reports reaching here said that 1.25 lakh bales stored in the warehouse at Naranganj on the outskirts of Dhaka were totally destroyed.

Haq said government was contemplating concessional loans with a moratorium on repayment to jute mills and exporters.

Chairman of the Bangladesh Jute Mills corporation (BJMC) Abu Osman Chowdhury said though none of the state-owned mills were closed down due to floods, output had significantly fallen because of poor attendance of workers.

"Only 50 per cent looms in the state-owned mills are operational at present," he said.

Bangladesh Jute Mills Association (BJMA) chairman Mirza Ali Behrouze Ispahani said 19 units hadsustained very heavy damage due to the floods and losses from these alone amounted to over Rs 45 crore. Meanwhile, an apex body of jute exporters claimed that they too had suffered similar losses due to infrastructure damage while the jute spinners association said eight spinning mills had closed down fully and six partially.

All of them complained of abominable high container, freight and handling charges due to shortages with officials claiming that exports had already fallen by two lakh bales this month compared their targets.