Food department set to buy 10 million jute sacks

The government is set to approve the food department's proposal to purchase 10 million jute hessian sacks costing Tk 540 million for preserving foodgrains in public silos, officials said.    
The Directorate General of Food will purchase the sacks from the state-owned Bangladesh Jute Mills Corporation (BJMC) under direct procurement system, they added.
As per the proposal, the BJMC will sell to the food department jute sack at Tk 54 each. One sack can accommodate 30kg foodgrains.
The ministry of food sent the proposal to the cabinet division for approval by the cabinet committee on public purchase in its meeting next week.
The government has allocated over Tk 4.17 billion for purchasing jute sacks for public departments/offices for the fiscal year (FY) 2016-17.
So far, over Tk 1.88 billion were spent for procurement of sacks by the state-run organisations.
The ministry of textiles and jute in its circular on January 22, 2014 asked all government offices/departments to compulsorily purchase 50 per cent of its requirement of jute sacks from the BJMC and the rest from the private sector.  
Following the directive, the DG Food has been purchasing jute sacks from the BJMC following proper specification.
The BJMC has 26 mills including three non-jute mills. Of the mills, one is closed.
The BJMC mills produce 500 tonnes of jute goods a day. The Corporation has a plan to raise its production to 700 tonnes daily to turn the Corporation into a profit-making concern.
The BJMC incurred a loss of Tk 6.40 billion in the FY 2014-15 and Tk 5 billion in the FY 2015-16.
The government gives funds every year to help the BJMC run its mills.
talhabinhabib@yahoo.com