AS per a news report the government is set to take back 14 jute mills from private owners and Bangladesh Jute Mills Corporation (BJMC) which now owns 27 mills has already taken back one jute mill previously sold to a private person under the privatization scheme which was at work over the past decades.
Meanwhile, the government has also sanctioned Tk 1000 crore for payment of arrear salaries and wages of jute mill workers and modernization of the state-owned jute mills to make them profitable. The allocation came against the backdrop of the ongoing agitation by jute mill workers in Khulna.
When most of our government owned industries are loss making due to corruptions, inefficiency, unaccountability and recruitment of employees on political consideration privatization seems to be the only way to stop government losses. But it appears that the government is now moving on the opposite direction abandoning the earlier privatization programme of public enterprises including handful of jute mills that are still in the public sector.
It is no more secret that the left leaning government leaders having their faith in socialism and that also included some ministers were opposing the privatization of public enterprises. They have been successful to cancel the tender for sale of many industries that the Privatization Board had earlier processed. But retaking the jute mill from its private owner and the plan to retake 13 more appear to be a new policy outline; which had proved fatally wrong in the past.
The Awami League government immediately after the Liberation War had nationalized all banks and industries. But subsequently it could realize that nationalization was not a right decision and followed the privatization policy of BNP and Jatiya Party governments. Awami League sold many public sector enterprises when it came to power in 1996 and even after 2009. We can’t understand why it is reversing the policy when the loss making jute mills in the public sector in the past proved to be a heavy liability to the government. Many said our readymade garment industry boomed in the private sector because owners were able to cut cost and make profit. They created a highly competitive garment sector unlike the loss making jute sector in the past.
Fresh nationalization of jute mills means regular recapitalization of loss making mills to support trade union leaders and workers with allocation from state funds. The sanctioning of huge budgetary fund for jute mills to pay wages and arrears suggests that the government is heading towards overtaking a heavy loads on the exchequer again.
Jute has a bright prospect for use in packaging, garments and automobiles industry sectors. Jute is environment friendly natural fibre. It needs creative entrepreneurs to find new use for jute. We do not have to go far to know how jute can be profitably used. India is a good example to get encouragement for the future of the golden fibre in Bangladesh.