A VERNACULAR daily report on Saturday said that five jute mills — Daulatpur Jute Mills Limited, Jatiya Jute Mills, Khalishpur Jute Mills, Karnaphuli Jute Mills and Forat-Karnaphuli Carpet Factory in Chittagong — which were reopened by the government in the recent years incurred losses worth over Tk 80 crore in total in three years because of flaws in operation, corruption and high overhead costs. That is in cost-benefit analysis those reopened jute mills have again failed to sustain themselves. The report further added that instead of being self-sustained ones, these mills are again pressing the Ministry of Jute to refinance them so that they can stay in operation.
Jute goods are in high demand in the international market because of harmful effects of synthetic products. But here in Bangladesh the jute industry, particularly in the public sector, is again facing difficulties due to low quality raw jute produced from inferior quality Indian seeds. As a result, demand for Bangladeshi jute products is declining in the international market. Moreover, some major Muslim countries have reduced import of jute bags, jute thread and raw jute from Bangladesh because of political unrest in those countries. The situation in the domestic market is in decay also. The government has passed a law making compulsory use of jute packaging made with 75 percent jute material in manufactured goods both in the private and public sectors. But during the last two years the use of jute bags has decreased because the law is not properly enforced which has impacted jute cultivation as well as the industry itself.
Besides, export of jute goods to India has declined in recent years as the neighbouring country has imposed new tariff and non-tariff barriers. Imposition of such tariff and non-tariff barriers will only leave a negative impact on export of jute products from Bangladesh to India.
Government run jute mills must not waste public money. If these mills cannot be run efficiently by competent and honest persons, then sell it or close it. Business is for making profit. Government should sack those in management who cannot make the jute mills profitable. Indian jute mills are doing well.
It is rather the utmost duty of the government to execute the law concerning jute-packaging use, settle non-tariff barriers with India, and encourage private enterprises to turn around the once major income earner for the country — the jute industry of Bangladesh.
