Local use of jute stressed

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Monira Munni The country's jute sector is facing setback owing to the ongoing economic slowdown in many countries, which has also caused price fall of jute and jute products. They suggested raising local consumption, developing skilled and technical manpower and ensuring quality seed for quality jute to overcome the present situation. "The recession has a great negative impact on the local jute sector," Chairman of Bangladesh Jute Mills Association (BJMA) Nazmul Haq told the FE Friday. "The recession is global and we have nothing to do but what we need for the survival of the sector is to raise our local use of jute and jute products." Due to the recession, prices of jute and jute products are declining, he said adding the local prices of jute do not decline actually. "Local prices of jute depend on grade of jute." The government should take immediate steps for the full implementation of the mandatory Packaging Act which will increase the local use of jute, Mr Haq said. "Now this is the only way to boost the sector's growth as well as ensure fair price for the farmers," he added. India has raised its local consumption to 90 per cent while Bangladesh is yet to ensure implementation of the Act, industry people said. They said if the Packaging Act is fully implemented, the consumption of jute-made products especially jute bags will increase to 60 per cent in the country. Abdul Barik Khan, secretary of BJMA, said the price of a hundred jute bags fell to $100 which was $120-$130 two months back. Echoing Mr Huq, Managing Director of Quasem Jute Mills Ltd Md Sayef Ullah said prices of jute ranged between Tk 800- Tk 2200 per maund according to the grade in the local market. Cost of production is increasing day by day due to high rate of bank interest, depreciation of Indian Rupee against dollar, increasing transportation cost and frequent power cuts, he said Bangladesh fails to make direct sourcing with Iran due to sanctions on the country, he explained. Moreover, private jute millers do not get equal government facilities, a jute miller said adding: "The government is yet to announce the rebate of the GoB loan of BJMA jute millers while it awarded the rebate of GoB loan to state-owned Bangladesh Jute Mills Corporation (BJMC) mills. The industry needs skilled manpower as there is also shortage of skilled technical manpower, he added. Chairman of Bangladesh Jute Spinners Association (BJSA) Mohammad Shams Uz Zoha stressed the need for ensuring quality seeds and natural way of jute retting for getting quality jute. The country meets its local seed demand through import and the larger share comes from India, he said. Bangladesh has 205 jute mills including 81 spinning and 124 composite mills, according to Bangladesh Jute Mills Corporation, BJMA and BJSA. The mills produce nearly 0.75 million tonnes of jute products and export 0.6 million tonnes per year.