Commerce ministry for Tk 48b fund for jute sector

The commerce ministry has suggested creating a low-cost fund of Tk 48 billion for the jute sector instead of the proposed Tk 100 billion fund.
The ministry put forward the suggestion in a letter sent to the finance division last week.
It recommended setting up a fund on the model of the existing Export Development Fund (EDF) with the facility of 2.0 per cent interest rate on loans to help jute goods producers purchase necessary raw materials.
The Ministry of Textiles and Jute (MoTJ) had earlier proposed establishing a special fund of Tk 100 billion for the benefit of jute goods producers. It also sent letters to the ministries concerned, including commerce and finance ministries, to this end.
Sector insiders, however, said the government should not reduce the amount of the fund, as jute producers and exporters have been facing financial crisis while running their business.
Rather, the authority should give special attention to the jute sector to help the local industry flourish, said Bangladesh Jute Mills Association (BJMA) secretary Abdul Barik Khan.
He said the government set up the Export Development Fund of Tk 2.5 billion in 1988 for the exporters who produce goods after importing raw materials.
On the other hand, jute goods producers and exporters are using local raw materials, but they are not getting such facilities, he added.
"The jute sector is passing a bad phase. So, such a fund will help jute goods producers run their business well," he added.
There are a total of 170 jute mills under the BJMA, 94 mills under Bangladesh Jute Spinners Association (BJSA) and 23 mills under Bangladesh Jute Mills Corporation (BJMC).

[email protected]