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Govt mulls law to make use of jute mandatory

Tuesday, 12 January 2010


The government is planning a law to make use of jute mandatory for packaging purposes considering environment and to prop up domestic demand for the natural fibre, Jute Minister Abdul Latif Siddiqui told parliament Monday.
The minister also said none of the state-owned jute mills will incur loss in the next two years, reports bdnews24.com.
The minister further said the government should continue with the ban on raw jute export until we make full use of jute produced in Bangladesh.
"We are considering use of jute mandatory for packaging of food grains, sugar, fertiliser, cement and other things," said Mr Siddiqui.
Replying to a written question from Awami League lawmaker Nosrul Hamid, the minister told the parliament that process was on to enact a law with the name "Mandatory Packaging Act", which would spur domestic demand for jute and replace harmful polythene.
He said the government's Food Directorate, Bangladesh Agricultural Development Corporation, Bangladesh Chemical Industries Corporation and other bodies have been using jute for packaging.
The minister said the government has taken measures to revive the jute mills, closed during the military-backed interim government, in the southwestern region of the country.
"All the jute mills in southwestern region will start functioning in the next six months," said the minister.
"Unlike previous years, jute mills will no longer incur losses."
The minister said that the industry incurred losses of Tk 4.70 billion in 2008, which came down to just Tk 900 million in 2009.
"I can say losses of the state-owned jute mills will be reduced to zero in the next two years," said Mr Siddiqui.
Bangladesh Jute Mills Corporation has 24 jute mills, most of which cause losses to the public exchequer mainly due to poor management and corruption.
Mr Siddiqui said the government should allow raw jute export too.
"We should continue raw jute export after we can make full use of jute produced here," said the minister.