BJMA for long-term lease of closed jute mills

Private jute millers have suggested leasing out the closed mills of the Bangladesh Jute Mills Corporation (BJMC) to private sector for a long period of time.

The millers also recommended ensuring sustainability of the state-owned jute mills - that will be opened under fresh arrangement - through demand-based production.

The Bangladesh Jute Mills Association (BJMA) recently placed these recommendations to the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI).

Other recommendations of the BJMA included handing over the BJMC's mills as fresh ones to private sector, declaring their machinery 'scrapped', and providing low-cost fund for import of new machinery,

It also suggested giving priority to skilled staffs and workers - who worked in the BJMC mills - while recruiting, and formation of new trade unions for workers.

The BJMC's mills should be leased out for 99 years, so that stakeholders can avail loans from banks to restart the mills properly, the association opined.

It also noted that demand for hessian and sacking, the key exportable jute products from Bangladesh, declined in international market because of political turmoil in key markets like Syria and Sudan.

Besides, the anti-dumping policy by India also affected overseas sale of the Bangladeshi jute goods. So, assessment of global jute market is crucial before going for production.

The BJMA also suggested taking initiatives to increase local use of jute-made products to ensure smooth operation of mills. To this effect, mandatory jute packaging law has to be duly enforced.

The government closed all 25 jute-mills of the BJMC from July 1 following their continuous loss over the years. A committee was formed on July 16 to recommend ways for reopening the units successfully within a short period.