Concern over quality as Tk 7.60b jute goods stockpiled in mills

The quality of jute goods worth about Tk 7.60 billion, manufactured by different jute mills, is at risk, as those are remaining stockpiled at the mills concerned due to a fall in export on sagging demand in the international markets, sources say.
The Bangladesh Jute Mill Corporation (BJMC) has long been manufacturing different types of packaging fabrics, hessian, sacking, carpet backing, mats and bags which are exported to different countries.
But now use of jute goods across the world fell significantly due to alternatives available, an official of the ministry of commerce (MoC) told the FE.
"About 75,419 tonnes of jute products worth Tk 7.60 billion are stored in different jute mills across the country. The quality of the jute items is at risk, as those have long been remaining stockpiled due to the fall in exports. Besides, storing such goods is a very difficult task," an official of the MoC said.
About 80,000 employees are working in 27 mills under the BJMC, which has to pay Tk 750 million a month on account of salaries.
"It is impossible for the BJMC to meet the expenditure on account of salaries due to the fall in exports and use of jute products in the international market," an MoC official said.
The MoC has taken initiatives to increase exports and explore new markets abroad for the items.
The government would issue a directive to the foreign missions abroad to expedite exports in the days to come, sources said.
According to the Export Promotion Bureau (EPB), export earnings from jute and jute goods declined by more than 30 per cent in the July-January period of the current fiscal. The country earned nearly US$ 592 million during the period against US$ 646 million in the corresponding period of the last fiscal year.
Millers and exporters said neighbouring India, that used to buy about 55-60 per cent of the total raw jute exports of Bangladesh, cut the imports from the country in the last few months driving down the total volume of jute exports, sources concerned said.
The central bank is going to create its own refinance fund to the tune of Tk 2.0 billion for the jute sector to boost it, a central banker has said.