Mismanagement, corruption responsible for losses of state-owned jute, sugar mills: Study

block

Staff Reporter :
Educationists and researchers on Monday said that not workers but mismanagement, massive corruption, and absence of proper planning are responsible behind the losses of state-owned jute and sugar mills.
There was no real basis for the argument that privatisation would lead to expansion of the industry, they said while speaking at a press conference organised by Sarbojonkotha, a journal on politics, economics and society, at Dhaka Reporters’ Unity (DRU) in the capital.
Prof Dr Mohammad Tanjimuddin Khan and Prof Moshahida Sultana of Dhaka University and researcher Dr Maha Mirza revealed their report on the shutdown of state-run jute and sugar mills, which was made following their visit to different jute mills in Khulna and sugar mills in northern districts.
They pointed out that from 1993 to 2010 about 75 industries in the country were left to private ownership, of which 31 were later closed. Lands and equipment of those industries were looted or huge bank loans were taken against the abandoned land of those industries.
They also made a seven-point recommendation, including taking necessary steps to reduce the losses by increasing the production capacity by immediately opening the mills, identifying those involved in corruption and taking legal action against them, and modernising the equipment of the mills.
The government recently closed down 25 state-owned jute mills due to huge loss in operating those factories. The fates of around 50,000 workers working in those mills have become uncertain.
The government has also decided to close down six out of 15 government-run sugar mills for what the government said to reduce the amount of losses. Around 3,000 workers are working in the six mills.
While placing the research paper, Maha Mirza said not only jute farmers, but the local economy of an entire region is tied to the jute mills in Khulna.
“We have seen that as a result of the closure of jute mills, many grocery stores, hotels, furniture shops, clothing shops and many other small businesses in the industrial area are under threat today,” she added.
Presenting the research report on sugar mills, Moshahida Sultana said, “The rate of sugar extraction from crushing sugarcane is comparatively much lower at 6-8 per cent in the country whereas in India or Brazil it is 12-14 per cent per tonne.”
Extremely low rates of sugar extraction are eventually added to the additional cost per kg of sugar production in Bangladesh.
Prof Tanjimuddin said, “Losses of mills are considered only with financial calculations. The more important social contributions at the local level of state-owned mills are not recognised.”
“Section 32 of the Labour Act clearly states that a worker cannot be evicted from their residence without their dues being cleared. But we see that the government itself is violating the labour law,” said Barrister Jyotirmoy Barua.
Prof Anu Muhammad said, “When eco-friendly industries are being encouraged all over the world, jute industries with huge potential are being shut down in Bangladesh through coercion, deception and lies.”
Sugar industries are being destroyed paving the ways for importing sugar for the interest of the businessmen, he added.

block