For reviving Sirajganj, now in deadline
Wednesday, 23 December 2009
Asif Mahfuz
SIRAJGANJ, a transportation hub since 1960, gradually lost its importance in recent years. It drew its importance as a communication hub for it railway, river as well as road links.
Transportation-related business has been a major income source for its people other than agriculture, which employs almost 70 per cent of the population. Until 2007, public sector, Kowmi Jute Mill employed around 11,000 people.
Sirajganj, as a district town lost much of its commercial importance after Jamuna Bridge was opened to traffic. Closure of Sirajganj Spinning and Cotton Mill, also in the public sector, took its toll. There were four railway stations in Sirajganj town namely Sirajganj Raipur, Sirajganj Bazaar, Sirajganj Bahirgola and Sirajganj Ghat. Perhaps, but for Dhaka, no other city in Bangladesh has so many railway stations. Raipur Railway Station mainly fed Kowmi Jute Mill's transportation. Without Kowmi Jute Mill, it looks like a ghost station. Only the Sirajganj Bazar Station still operates. Sirajganj Ghat and Bahirgola, the two other stations, were closed long ago.
Until 1997, the noise of trains was an indicator of the commercial importance of the town. Now only four local passenger trains stop at Sirajganj town.
Before the bridge was opened, the Sirajganj Ghat Station was one of the main points of transportation across the Jamuna. Now, it is a story of the past. Jamuna lost its navigability long ago. Yet passenger launches and ferries regularly anchored at Sirajganj Ghat. Now the town is no more linked with the rest of the country by river.
Sirajganj Spinning and Cotton Mill, in its heyday, used to add value to raw cotton worth about Tk 5.98 million to produce threads worth about Tk 8.23 million a year. It employed around 1000 employees.
Established in 1966 at Rahmatganj under Sirajganj municipality by the private sector, Sirajganj Spinning and Cotton Mill was nationalised in 1972. After nationalisation, it was closed thrice. The final closure took place in the middle of 2007. The management said the mill was closed mainly due to acute financial crisis and antiquated machinery. Replacement of machinery, with bank loans, could, they said, make it profitable again. Rupali Bank agreed, but never gave the loan, they noted.
Kowmi Jute Mill, established in 1960 at Raipur Upazila in the district had 250-loom, hessian unit, sacking unit, and a 32-loom CBC unit. It was established in Sirajganj, because of availability of raw jute and its communication advantage. In its heyday, around 5,600 permanent workers, 2500 temporary workers and about 2000 other employees were employed by the jute mill. Shops used to remain open until later hours on pay day.
Former worker, Ram Prashad Saha, said, "We used to receive at least Tk. 1800 a week in wage. With overtime he earned up to Tk. 3200 a week. He said, he saw workers coming at four in the morning to the mill. Cargo movement made it a busy railway station. Bullock carts brought raw jute to the mill. Thousands of workers came out as the bell rang. But those are the memories of the past. Gone are those good old days. Now most of the nearby families either live on subsistence agriculture or the meager returns out of their provident fund. Officially, the reasons for closure were shortage of funds and lack of raw materials. It was ironic that the mill had to be closed for the lack of raw materials, when Bangladesh exported jute to several countries, notably India. Unofficially, rent-seeking by union leaders and corruption in the purchase of jute and spares, delays in the release of funds by the government were responsible for the closure. Public sector mills become profitable under private ownership because of better management.
Raw jute is smuggled to India. The latter became a major importer of Bangladesh jute only to re-export to third countries. Bangladesh lost the market for jute goods as well as raw jute. Salahuddin Ahmed, a former chairman of the Bangladesh Jute Mills Corporation (BJMC), commented, "When we are shutting down, jute mills in our country, neighbouring India is increasing investment in jute industry, sensing the high demand for environment-friendly jute goods in the global market."
Former chairman of Transparency International Bangladesh Trustee Board, Prof Muzaffer Ahmed said despite demand for jute-made products, there has been no major research to revive the jute industry of Bangladesh. Thirty five million people were involved on jute sector, from cultivation to industrial processing. The government should take realistic action plans to save the sector. By declaring the year 2009, the 'International Natural Fibre Year', the UN has only underlined the relevance of environment-friendly jute and jute products. The new government's decision to reopen the mill has created a new optimism. The chairman of the parliamentary standing committee on textiles and jute ministry, Akhtaruzzaman Chowdhury MP said that the committee recommended for reopening the Kowmi Jute Mill in Sirajganj. He also said that the Awami League government was trying to revive the lost glory of jute, popularly known as the golden fibre. The committee also recommended for reopening the Daulatpur Jute Mill and a unit of Adamjee Jute Mills. It recommended payment of Tk 620 million to Kowmi Jute Mill in phases.
This is what the Sirajganj has been expecting since the closure of the mill two years back. With better management, timely funding and reduction of corruption in purchases, Kowmi Jute Mill can again be profitable.
The writer, a faculty in the Business Department of Eastern University, now working with an international non-profit organisation for reviving Bangladesh's jute industry, can be reached at amahfuz@winrockbd.org
SIRAJGANJ, a transportation hub since 1960, gradually lost its importance in recent years. It drew its importance as a communication hub for it railway, river as well as road links.
Transportation-related business has been a major income source for its people other than agriculture, which employs almost 70 per cent of the population. Until 2007, public sector, Kowmi Jute Mill employed around 11,000 people.
Sirajganj, as a district town lost much of its commercial importance after Jamuna Bridge was opened to traffic. Closure of Sirajganj Spinning and Cotton Mill, also in the public sector, took its toll. There were four railway stations in Sirajganj town namely Sirajganj Raipur, Sirajganj Bazaar, Sirajganj Bahirgola and Sirajganj Ghat. Perhaps, but for Dhaka, no other city in Bangladesh has so many railway stations. Raipur Railway Station mainly fed Kowmi Jute Mill's transportation. Without Kowmi Jute Mill, it looks like a ghost station. Only the Sirajganj Bazar Station still operates. Sirajganj Ghat and Bahirgola, the two other stations, were closed long ago.
Until 1997, the noise of trains was an indicator of the commercial importance of the town. Now only four local passenger trains stop at Sirajganj town.
Before the bridge was opened, the Sirajganj Ghat Station was one of the main points of transportation across the Jamuna. Now, it is a story of the past. Jamuna lost its navigability long ago. Yet passenger launches and ferries regularly anchored at Sirajganj Ghat. Now the town is no more linked with the rest of the country by river.
Sirajganj Spinning and Cotton Mill, in its heyday, used to add value to raw cotton worth about Tk 5.98 million to produce threads worth about Tk 8.23 million a year. It employed around 1000 employees.
Established in 1966 at Rahmatganj under Sirajganj municipality by the private sector, Sirajganj Spinning and Cotton Mill was nationalised in 1972. After nationalisation, it was closed thrice. The final closure took place in the middle of 2007. The management said the mill was closed mainly due to acute financial crisis and antiquated machinery. Replacement of machinery, with bank loans, could, they said, make it profitable again. Rupali Bank agreed, but never gave the loan, they noted.
Kowmi Jute Mill, established in 1960 at Raipur Upazila in the district had 250-loom, hessian unit, sacking unit, and a 32-loom CBC unit. It was established in Sirajganj, because of availability of raw jute and its communication advantage. In its heyday, around 5,600 permanent workers, 2500 temporary workers and about 2000 other employees were employed by the jute mill. Shops used to remain open until later hours on pay day.
Former worker, Ram Prashad Saha, said, "We used to receive at least Tk. 1800 a week in wage. With overtime he earned up to Tk. 3200 a week. He said, he saw workers coming at four in the morning to the mill. Cargo movement made it a busy railway station. Bullock carts brought raw jute to the mill. Thousands of workers came out as the bell rang. But those are the memories of the past. Gone are those good old days. Now most of the nearby families either live on subsistence agriculture or the meager returns out of their provident fund. Officially, the reasons for closure were shortage of funds and lack of raw materials. It was ironic that the mill had to be closed for the lack of raw materials, when Bangladesh exported jute to several countries, notably India. Unofficially, rent-seeking by union leaders and corruption in the purchase of jute and spares, delays in the release of funds by the government were responsible for the closure. Public sector mills become profitable under private ownership because of better management.
Raw jute is smuggled to India. The latter became a major importer of Bangladesh jute only to re-export to third countries. Bangladesh lost the market for jute goods as well as raw jute. Salahuddin Ahmed, a former chairman of the Bangladesh Jute Mills Corporation (BJMC), commented, "When we are shutting down, jute mills in our country, neighbouring India is increasing investment in jute industry, sensing the high demand for environment-friendly jute goods in the global market."
Former chairman of Transparency International Bangladesh Trustee Board, Prof Muzaffer Ahmed said despite demand for jute-made products, there has been no major research to revive the jute industry of Bangladesh. Thirty five million people were involved on jute sector, from cultivation to industrial processing. The government should take realistic action plans to save the sector. By declaring the year 2009, the 'International Natural Fibre Year', the UN has only underlined the relevance of environment-friendly jute and jute products. The new government's decision to reopen the mill has created a new optimism. The chairman of the parliamentary standing committee on textiles and jute ministry, Akhtaruzzaman Chowdhury MP said that the committee recommended for reopening the Kowmi Jute Mill in Sirajganj. He also said that the Awami League government was trying to revive the lost glory of jute, popularly known as the golden fibre. The committee also recommended for reopening the Daulatpur Jute Mill and a unit of Adamjee Jute Mills. It recommended payment of Tk 620 million to Kowmi Jute Mill in phases.
This is what the Sirajganj has been expecting since the closure of the mill two years back. With better management, timely funding and reduction of corruption in purchases, Kowmi Jute Mill can again be profitable.
The writer, a faculty in the Business Department of Eastern University, now working with an international non-profit organisation for reviving Bangladesh's jute industry, can be reached at amahfuz@winrockbd.org