Draft jute policy could be placed soon for cabinet approval

Talha Bin Habib The new Jute Policy-2011 is likely to be placed before the Cabinet soon for its approval, officials said. "We are going to place the draft jute policy before the Cabinet at the earliest after addressing two queries of the ministry," a high official of the Ministry of Textiles and Jute (MoTJ) told the FE preferring anonymity. The official said the ministry is to find out the difference between the existing jute policy (2002) and the new draft policy (2011). The ministry will also take opinions from all public and private organisations that deal with jute before finalising the policy. There are some new objectives included in the draft jute policy (2011). The objectives are to reopen the closed jute mills, draw more investment in the sector, develop human resources and strengthen jute related information management system. After assuming power, the ruling Awami League government has formed a Jute Commission with a specific task to suggest the government for taking measures to bring back the golden days of jute, once regarded as golden fiber of Bangladesh. The commission had submitted its report to the Textiles and Jute Minister Abdul Latif Siddiqui in March, 2011. The commission suggested the government to have a new 'Jute Policy- 2011' by replacing the existing one. The government has prepared the draft of 'Jute Policy -2011' in line with the recommendations of the Jute Commission. The new policy will focus on increased production of jute, diversification of jute products and making the state- owned jute mills as 'profitable' concerns. The commission has urged the government to declare jute as agro-based industry with the provisions of fiscal supports with other required facilities, ensure fair price of jute to farmers by curbing the middlemen and give tax holiday and other supports to the sector. The other major recommendations of the commission include steps for exporting jute and jute goods and making a buffer stock of the golden fiber so that the prices of jute could remain stable in the local market. The jute plays a significant role in socio-economic development of the country as one-fifth population of the country directly or indirectly is involved with the sector. The demand for jute and jute goods across the world has been increasing notably by considering its eco- friendly nature, giving the country a golden opportunity to export more raw jute and jute products. At present the country has about 200 jute mills and twin mills under public and private supervision. Out of the number, 22 are under the Bangladesh Jute Mills Corporation (BJMC) of which 18 are now running in full swing. The average annual jute production in the country is between 5.5 and 6 million bales on 1.2 million to 1.4 million acres of land. The jute mills of the country usually need 4.4 million bales of raw jute and 1.6 million bales are exported yearly. The country earned foreign currency by exporting raw jute and jute goods worth Tk 50 billion (Tk 5,000 crore) during the 2009-10 fiscal, according to Bangladesh Jute Mills Association (BJMA).