BJMC may fail to fulfil target for fund shortage

Bangladesh Jute Mills Corporation (BJMC) is unlikely to fulfil its raw jute procurement target for delay in disbursement of fund from the government exchequer which may result in a slump of jute goods production, officials said.
The procurement of raw jute started two months ago. BJMC has targeted to purchase 2.6 million quintals of raw jute this year. And till date it purchased a minimal quantity of raw jute due to unavailability of required fund.
"We may not be able to fulfil our target of purchasing raw jute. Delay in financial disbursement from the government is the prime cause for this. If we fail to purchase raw jute on time, our production may fall," Chairman of BJMC Maj Gen (Retd) Humayun Khaled told the FE.
He said last year BJMC had purchased nearly 1.2 million quintals of raw jute which is now running out at the mills due to the production of jute products.    
Earlier the BJMC, through the ministry of textiles and jute (MoTJ), wrote a letter to the ministry of finance (MoF) for disbursement of Tk 5.0 billion for purchasing raw jute and payment of dues.
"So far we've got only Tk 2.0 billion that has already been spent for paying salaries, dues and purchase of raw jute. If we get the rest of the amount, then it will be possible for us to purchase raw jute that will help us keep the wheels of the mills running," Mr Khaled said.
About 80,000 employees have been engaged in the BJMC-run 26 mills. But due to lack of modernisation, the mills could not utilise their cent per cent production capacity.  
The BJMC has signed three memorandums of understanding (MoUs) to receive technical assistance from China that will help modernise the mills. As per the MoUs, all the 26 old jute mills of BJMC will be surveyed with the Chinese government's financial grant. China TextMatek Company (CTMC) will undertake balancing, modernisation, rehabilitation and expansion (BMRE) of these jute mills.
In addition, the Chinese government will also provide technical support for manufacturing the latest and diversified jute goods at the jute mills of BJMC.
As per the MoU, the Chinese government will provide credit at 1.5 per cent interest to Bangladesh for executing BMRE work. The loan would be refundable within 20 years.
BJMC sells jute sacks and hessian to Bangladesh Chemical Industries Corporation (BCIC), Bangladesh Agricultural Development Corporation (BADC), ministry of food (MoF) and other organisations.
BJMC sold jute goods worth Tk 3.0 billion in the local market during the fiscal year (FY) 2013-14. The amount is 30 per cent of total sale of the corporation, according to its statistics.  
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