UNB, Khulna :
The state-owned jute mills in the Khulna-Jessore industrial belt are not being able to purchase raw jute in the current season thanks to severe fund crunch.
It is anticipated that failure to meet the purchasing target of raw jut might put an adverse impact on production in the jute mills. Sources at the Bangladesh Jute Mills Corporation (BJMC) said there has not been any progress in purchasing raw jute. The sources also said at present there is not sufficient stock of raw jute in the mills of the Khulna-Jessore industrial zone. Most of the mills have raw jute with which they can continue by and large for twenty days.
BJMC controlled Khalishpur Jute Mills has jute stock only for 5-7 days, Platinum Jute Mills for four days, Star Jute Mills for 10 days, Eastern Jute Mills for 10 days, Carpeting Jute Mills for 15 days, JJI Jute Mills for 12 days, Khalishpur Jute Mills for 13days and Daulatpur Jute Mills for 20 days, informed the sources. To overcome the dearth of fund, the finance ministry has given a permission to provide Tk260 crore loan to the mills for jute purchase to keep their production unhindered.
The money has been given on a condition that the mills could not use it in other sectors except buying raw jute.
To this effect, a deal also has been signed between the finance department and BJMC, with another condition that the loan would have to be repaid with five per cent interest at an installment every six months in the next five years.
A letter related to the loan release mentioned that Tk260 crore was allocated for buying raw jute under BJMC in the 2016-17 fiscal year. The released money could not be used in other sectors other than buying raw jute.
Other conditions are an audit report made by a CA firm on details of using the money has to be sent to the finance department within three months and the government rules and regulations have to be followed in the expenditure.
The authorities concerned will be held responsible if the money is paid without following the rules.
The conditions mentioned in the memorandum singed among the Textile and Jute Ministry, BJMC and finance department have to be followed accurately.
Sources said there was a target to purchase 10.40 lakh quintal jute in the 2015-16 fiscal year.
But the year ended amid a crisis and only 40 percent of the target could be fulfilled.
For the acute financial crisis, the mills are failing to buy required quantity of raw jute and it seems to have become a challenge for them to continue smooth operation.
The state-owned jute mills in the Khulna-Jessore industrial belt are not being able to purchase raw jute in the current season thanks to severe fund crunch.
It is anticipated that failure to meet the purchasing target of raw jut might put an adverse impact on production in the jute mills. Sources at the Bangladesh Jute Mills Corporation (BJMC) said there has not been any progress in purchasing raw jute. The sources also said at present there is not sufficient stock of raw jute in the mills of the Khulna-Jessore industrial zone. Most of the mills have raw jute with which they can continue by and large for twenty days.
BJMC controlled Khalishpur Jute Mills has jute stock only for 5-7 days, Platinum Jute Mills for four days, Star Jute Mills for 10 days, Eastern Jute Mills for 10 days, Carpeting Jute Mills for 15 days, JJI Jute Mills for 12 days, Khalishpur Jute Mills for 13days and Daulatpur Jute Mills for 20 days, informed the sources. To overcome the dearth of fund, the finance ministry has given a permission to provide Tk260 crore loan to the mills for jute purchase to keep their production unhindered.
The money has been given on a condition that the mills could not use it in other sectors except buying raw jute.
To this effect, a deal also has been signed between the finance department and BJMC, with another condition that the loan would have to be repaid with five per cent interest at an installment every six months in the next five years.
A letter related to the loan release mentioned that Tk260 crore was allocated for buying raw jute under BJMC in the 2016-17 fiscal year. The released money could not be used in other sectors other than buying raw jute.
Other conditions are an audit report made by a CA firm on details of using the money has to be sent to the finance department within three months and the government rules and regulations have to be followed in the expenditure.
The authorities concerned will be held responsible if the money is paid without following the rules.
The conditions mentioned in the memorandum singed among the Textile and Jute Ministry, BJMC and finance department have to be followed accurately.
Sources said there was a target to purchase 10.40 lakh quintal jute in the 2015-16 fiscal year.
But the year ended amid a crisis and only 40 percent of the target could be fulfilled.
For the acute financial crisis, the mills are failing to buy required quantity of raw jute and it seems to have become a challenge for them to continue smooth operation.
