19 jute-spinning mills shut in 8 months

The country's jute millers and spinners are passing a hard time following lower demand and prices of their products in overseas market as well as currency devaluation in India.
At least 19 jute mills and spinning mills were shut during the last eight months. Many others are about to face closure because of lower sales and prices of jute-made products in the international market, said sector insiders.
So far 16 jute spinning mills, out of 95, and three jute mills, out of 130, were forced to stop their production because of financial difficulties, they said.
On the other hand, India has curbed import of jute goods following its currency devaluation.
Shabbir Yousuf, president of Bangladesh Jute Spinners' Association (BJSA), said the millers were forced to close their units due to poor sales. If such dull situation continues, many others will face the same fate.
Bangladesh mainly exports jute yarn, jute sacks and bags to India, Thailand, Egypt, Syria, Turkey, Iraq and Sudan. But most of these countries have been facing political unrest since long, which brought an adverse impact on Bangladesh jute sector, he said.
Syria is one of the largest markets for Bangladesh's jute yarn. It usually imports nearly 70,000 tonnes of yarn a year. But it imported only 7,000 tonnes in the last fiscal year following political turmoil, Mr Yousuf said.
Besides, export of Bangladeshi jute yarn to India has recently reached almost zero-level. But the neighbouring country usually imports 55,000 tonnes of yarn each year.
Due to the US-imposed sanction against Iran, it cannot buy jute goods from Bangladesh. The Muslim state imports some 40,000 tonnes of yarn a year.
The BJSA president also mentioned that the price of jute yarn has declined in the international market. Now jute yarn is selling at US$ 810-820 per tonne against its production cost of $ 950.
Like the jute spinning mills, the jute mills are also facing the same adversity. Some three to four jute mills were closed recently, said Bangladesh Jute Mills Association (BJMA) secretary Abdul Barik Khan.
He said jute price has declined at least 17 per cent in the international market.
At least three private jute mills have been declared laid off recently, while many others are about to face closure because of financial difficulties.
The closed mills are Mohsin Jute Mills and Ajax Jute Mill in Khulna, and Pubali Jute Mills in Ghorashal. The mills stopped their operations, as these were burdened with bank loans and piles of unsold products, said officials.
Moreover, nearly half of the mills are now struggling to maintain their existence. If the government does not come forward, they cannot survive in the long run, said the BJMA secretary.
He said the mills are facing various problems, as the demand of jute products has declined significantly in the international market due to world recession and political unrest in the Middle East.
Besides, the prices of jute goods have fallen by 20 per cent. Domestic use of these environment-friendly products did not increase, as the Jute Packaging Act is yet to be implemented.
He said since long they have been requesting the ministries concerned to implement the act and provide financial support, but they did not get proper response in this regard.