Govt to form taskforce for jute sector development

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S M Jahangir
The government will constitute a taskforce shortly for the development of the country's ailing jute sector with especial focus on the private sector.
To be headed by a senior government official, the taskforce will be comprised of entrepreneurs of the sector and officials of the state-run jute mills, sources said.
The job of the proposed taskforce will be to review the present state of the sector and suggest strategies for its revival.
The decision on the formation of such public-private taskforce came at a recent meeting between officials of the Chief Adviser's Office (CAO) and the representatives of the jute sector, a meeting source told the FE.
Leaders of private jute sector attended the meeting at the invitation of the CAO to set strategies for making the local jute industry operationally sound, they added.
Presided over by Secretary to the CAO Kazi Md. Aminul Islam, discussed the problems faced by the country's jute industry and find out ways for rejuvenating the sector.
Textile and Jute Secretary Abdur Rashid Sarkar, chairmen of Bangladesh Jute Mills Association (BJMA) and Bangladesh Jute Spinners Association (BJSA) along with their respective executive members, Chairman of the Bangladesh Jute Corporation (BJMC), Director General of Department of Jute and Executive Director of Jute Diversification and Promotion Centre (JDPC) were present at the meeting.
Aminul Islam told the meeting that the government had no intention to expand its activities in the jute sector, rather it wanted to accelerate the growth of the industry under the private management.
He, however, said the government has plans to handover the remaining state-run jute mills to the private sector in phases.
The BJMC Chairman Kamran T Rahman placed 11-point recommendations, including payment of outstanding export subsidy and enhancement of existing subsidy on export of jute goods, and reduction of bank interest on working capital, for the promotion of the local jute industry.
Referring to the recommendation of the Jute Advisory Committee, he urged the government to extend the time for rescheduling the loan under the Jute Sector Adjustment Credit (JSAC) facility to 2015 from 2008.
The BJMA Chairman also demanded of the government to release the entire fund, which it woes the private jute mills, to help boost their operations.
The government is liable to pay a sum of Tk 106.20 million on account of loss financing and Tk 194.40 million as interest on the loss financing, Tk 381.90 million against the JSAC and Tk 150 million as export subsidy, he mentioned.
The BJMA leader also suggested that the government should relax the existing provision on requirement of clearance certificate from the Credit Information Bureau (CIB) of Bangladesh Bank in getting loan as working capital by the private jute mills.
The Association, however, urged the government to make the use of jute bags mandatory for packaging foodgrains, sugar, fertilisers, cement and textiles in the country as it has been done in India.
It also reiterated the demand for enhancement of cash subsidy on export of jute goods to 15 per cent from the exiting 7.5 per cent and reduction of interest rate on working capital to 7.0 per cent.