State-owned jute mills start making profit after decades
Saturday, 14 May 2011
Talha Bin Habib
The state-owned jute mills started making profit after three decades, bringing hope to regain the golden days of the golden fibre of Bangladesh, officials said. There are 18 jute mills run by Bangladesh Jute Mills Corporation (BJMC). The mills had made no profit since 1982. But after the present government came to power, it gave utmost priority to jute sector with a view to making all the jute mills profitable. From July 2010 to April 2011, the total profits made by those jute mills were Tk 97.8 million (9 crore 78 lakhs). Latif Bawani Jute Mill made profit worth Tk 24.6 million (2 crore 46 lakhs), the highest among the mills. The mills incurred losses worth Tk 1.0415 billion (104 crore 15 lakhs) in the last fiscal. The increased production of jute and sales of raw jute and jute goods in the local and international markets have been contributing to making the mills financially viable. The export of jute goods made a record 54 per cent growth during the first six months of the current (2010-11) fiscal compared with the previous fiscal. The country has exported raw jute and jute goods worth US$643.40 million during July-April of the current fiscal (2010-11), according to the concerned department. The demand of raw jute and jute goods has increased substantially in the international market in recent days. Besides, the prices of raw jute and jute goods have also increased 33 per cent in the international market, because of its environment-friendly physical condition. Earlier, the Jute Commission, in its report submitted to the government recommended reopening, revitalising and rejuvenating the closed jute mills and declaring jute as an agro-based sector with the provision of providing all kinds of necessary logistic support to it. The ministries of textiles and jute and the forest and environment at a meeting on April 13 at the jute ministry emphasised the need for wider use of jute goods considering the environmental concern and bringing back the past glory of the 'golden fibre' of Bangladesh. According to the decision of the government the four government organisations have decided to purchase a large quantity of jute sacks from the government jute mills during 2010-11 fiscal. The BJMC has taken an order worth Taka 1050 million to supply about 15 million jute sacks to the Department of Food (DoF) and Bangladesh Agriculture Development Corporation (BADC), a high official of BJMC marketing department said. The BJMC will also sell jute sacks to Bangladesh Chemical Industries Corporation (BCIC) and Bangladesh Sugar and Food Industries Corporation (BSFIC). Jute Minister Abdul Latif Siddiqui said according to the recommendations of the Jute Commission, the government will soon formulate the Jute Policy so that the sector could regain its fame as the golden fibre of Bangladesh.
The state-owned jute mills started making profit after three decades, bringing hope to regain the golden days of the golden fibre of Bangladesh, officials said. There are 18 jute mills run by Bangladesh Jute Mills Corporation (BJMC). The mills had made no profit since 1982. But after the present government came to power, it gave utmost priority to jute sector with a view to making all the jute mills profitable. From July 2010 to April 2011, the total profits made by those jute mills were Tk 97.8 million (9 crore 78 lakhs). Latif Bawani Jute Mill made profit worth Tk 24.6 million (2 crore 46 lakhs), the highest among the mills. The mills incurred losses worth Tk 1.0415 billion (104 crore 15 lakhs) in the last fiscal. The increased production of jute and sales of raw jute and jute goods in the local and international markets have been contributing to making the mills financially viable. The export of jute goods made a record 54 per cent growth during the first six months of the current (2010-11) fiscal compared with the previous fiscal. The country has exported raw jute and jute goods worth US$643.40 million during July-April of the current fiscal (2010-11), according to the concerned department. The demand of raw jute and jute goods has increased substantially in the international market in recent days. Besides, the prices of raw jute and jute goods have also increased 33 per cent in the international market, because of its environment-friendly physical condition. Earlier, the Jute Commission, in its report submitted to the government recommended reopening, revitalising and rejuvenating the closed jute mills and declaring jute as an agro-based sector with the provision of providing all kinds of necessary logistic support to it. The ministries of textiles and jute and the forest and environment at a meeting on April 13 at the jute ministry emphasised the need for wider use of jute goods considering the environmental concern and bringing back the past glory of the 'golden fibre' of Bangladesh. According to the decision of the government the four government organisations have decided to purchase a large quantity of jute sacks from the government jute mills during 2010-11 fiscal. The BJMC has taken an order worth Taka 1050 million to supply about 15 million jute sacks to the Department of Food (DoF) and Bangladesh Agriculture Development Corporation (BADC), a high official of BJMC marketing department said. The BJMC will also sell jute sacks to Bangladesh Chemical Industries Corporation (BCIC) and Bangladesh Sugar and Food Industries Corporation (BSFIC). Jute Minister Abdul Latif Siddiqui said according to the recommendations of the Jute Commission, the government will soon formulate the Jute Policy so that the sector could regain its fame as the golden fibre of Bangladesh.