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Jute mills’ rehabilitation to usher in employment, forex

  • Published at 06:23 pm September 27th, 2014
Jute mills’ rehabilitation to usher in employment, forex

The initiative for modernisation and rehabilitation of 28 state-owned jute mills is in the offing to create employment opportunities and bring more foreign exchange.

The Chinese state-owned textile company, China Texmatech Limited, will provide soft loan for Bangladesh Jute Mills Corporation to modernise and bring back the lost glory of once golden fiber of Bangladesh.

“The initiative will help the government profit from the export of jute products and create more employment for the countrymen,” said State Minister for Jute and Textile Mirza Azam.

He said the ministry accepted the proposal of the Chinese company as it wanted to invest in the jute and textile sector.

A Memorandum of Understanding (MoU) has already been signed with the China Texmatech, added the state minister.

The feasibility study will start soon and after that the amount of soft loan will be fixed up, he said.

Around 15,000 people will find employment in these jute mills after their renovation, Mirza Azam said, adding that around Tk100-crore assests will be used properly to earn forex.

The jute mills that will come under renovation under the Dhaka zone are Bangladesh Jute Mills, Karim Jute Mills, Latif Bawani Jute Mills, UMC Jute Mills, Rajshahi Jute Mills, Juto Fibre Glass Industries (non-jute), National (Jatiya) Jute Mills, Monowar Jute Mills and Mymensingh Jute Mills.

The mills under the Chittagong zone are Amin Jute Mills, Gul Ahmed Jute Mills, Hafiz Jute Mills, MM Jute Mills, RR Jute Mills, Baghdad-Dhaka Carpet Factory, Karnafuli Jute Mills, Forat Karnafuli Carpet Factory, Galfra Habib (non-jute) and Mills Furnishing (non-jute).

The mills under the Khulna zone are Carpeting Jute Mills, Jessore Jute Industries, Aleem Jute Mills, Eastern Jute Mills, The Crescent Jute Mills, Platinum Jubilee Jute Mills, Star Jute Mills, Khalishpur Jute Mills and Doulatpur Jute Mills.

Of the 28 mills, Monowar Jute Mills remains closed for a long time and Mymensingh Jute Mills which was privatised earlier was taken back recently as the leasing authority failed to deposite money for the lease in time.

The MM Jute Mills and RR Jute Mills of Chittagong have started test operation in 2010 after a long time.

According to the Textile and Jute Ministry, Bangladesh Jute Mills Corporation, supervising authority of the jute mills, achieved profit of Tk19.53 crore for the first time after 1980’s.

The jute mills bought 14.78 lakh quintals of jute spending Tk522.39 crore. The state-owned agency bought the same amount of jute for Tk638.48 crore in the previous fiscal year. In 2011-12 fiscal, the BJMC spent Tk826.63 crore on buying 20.95 lakh qiuintals of jute.

In 2013-14 fiscal, the BJMC produced around 121,261 metric tonnes of jute products up to February, 2014. It was 188,760 metric tonnes in the previous year while 176,405 metric tonnes in 2011-12 fiscal year.

The BJMC earned Tk413.59 crore exporting around 559,400 metric tonnes of jute products up to February 2014 in 2013-14 fiscal. The earning was Tk1,362.19 crore in the previous year while Tk1,059.53 crore was earned in 2011-12 fiscal.

Despite assets of several crores, the mill authorities cannot operate and maintain the mills properly due to shortage of capital as the government provides a little support for the mills.

According to the ministry, there were 77 jute mills under the BJMC until 1982.