Reports from east Nepal, the main jute-growing belt in the country, say that the area under cultivation has been shrinking every year, despite a growing market for the finished product both in the country and abroad. The local jute mills of Biratnagar are even asking farmers to produce more of the crop, which they promise to purchase at ?reasonable prices.? The production capacity of jute mills in Morang and Sunsari district is about 60,000 tonnes but the supply of raw material is barely 24,000 tonnes. Growers cite of frequent breakdown of the mills and instability in prices as reasons for not growing the crop. Nepal exported Rs1.10 billion worth of jute goods to India in fiscal 1999-2000.