BJMA submits 10-pt suggestion for survival of local jute mills
Sunday, 23 November 2008
FE Report
The private jute millers have submitted a 10-point suggestions including creation of a 'crisis fund' to a high-profile government committee for helping protect exports of local jute goods against the adversity of the global financial meltdown.
"We have placed the suggestions before the Advisory Committee on Jute Affairs for its consideration," said the Bangladesh Jute Mills Association (BJMA).
The Committee recently sought suggestions from the stakeholders including the BJMA for discussing the problems of the country's jute sector at its next meeting, an Association source said.
In its 10-point suggestion, BJMA Chairman Nazmul Haq stressed the urgent need for raising the cash subsidy on export of jute goods to 20 per cent from the existing 7.5 per cent.
"Taking the adverse impact of the global financial recession into consideration, the government should enhance the rate of export subsidy on export to 20 per cent from the existing 7.5 per cent," he said.
The Association suggested that the authorities should either devalue the local currency or reintroduce the 'bonus voucher system' to help protect the country's jute export.
India, Bangladesh's main competitor in the jute sector, had recently devalued its currency by around 21 per cent in phases, as a result of which the local jute goods became less competitive in the export market, it said.
Among others, the Association called for immediate implementation of the recommendations made earlier by a high-powered Jute-Sector Taskforce, introduction of 'dual currency exchange rates' and reduction of bank interest on working capital.
The apex body of the private jute mills also reiterated its demand for making the use of jute bags mandatory for packaging food products and cement for survival of local jute mills.
The private jute millers have submitted a 10-point suggestions including creation of a 'crisis fund' to a high-profile government committee for helping protect exports of local jute goods against the adversity of the global financial meltdown.
"We have placed the suggestions before the Advisory Committee on Jute Affairs for its consideration," said the Bangladesh Jute Mills Association (BJMA).
The Committee recently sought suggestions from the stakeholders including the BJMA for discussing the problems of the country's jute sector at its next meeting, an Association source said.
In its 10-point suggestion, BJMA Chairman Nazmul Haq stressed the urgent need for raising the cash subsidy on export of jute goods to 20 per cent from the existing 7.5 per cent.
"Taking the adverse impact of the global financial recession into consideration, the government should enhance the rate of export subsidy on export to 20 per cent from the existing 7.5 per cent," he said.
The Association suggested that the authorities should either devalue the local currency or reintroduce the 'bonus voucher system' to help protect the country's jute export.
India, Bangladesh's main competitor in the jute sector, had recently devalued its currency by around 21 per cent in phases, as a result of which the local jute goods became less competitive in the export market, it said.
Among others, the Association called for immediate implementation of the recommendations made earlier by a high-powered Jute-Sector Taskforce, introduction of 'dual currency exchange rates' and reduction of bank interest on working capital.
The apex body of the private jute mills also reiterated its demand for making the use of jute bags mandatory for packaging food products and cement for survival of local jute mills.