Taskforce finalises recommendations for development of jute sector
S M Jahangir | Monday, 23 June 2008
A high-powered taskforce on development of the country's ailing jute sector has prepared a series of recommendations, including enhancement of export subsidy and diversification of jute goods, to be placed before the Chief Adviser's Office for next course of action.
The taskforce finalised Sunday its recommendations at a meeting held at the Secretariat with its convener and Jute and Textile Secretary Abdur Rashid Sarker in the chair, sources said.
In March 2008, the government through a gazette notification formed the 16-member taskforce, that comprised representatives from all the stakeholders to find out the problems that the local jute sector has been facing and suggest their remedies.
One of the main objectives of setting up of the taskforce was to devise strategies on how to integrate the private jute mills with the sector's development process.
Another important task of the body was to review the implementation performances of the decisions taken earlier by the government for the development of the local jute industry.
"After holding a series of meetings and taking suggestions from the stakeholders, the taskforce has made a number of recommendations on areas of productivity, value addition, exports, government's fiscal support and operational aspects of the local jute industry," an official source told the FE.
Among the major recommendations, the taskforce has suggested that the government should consider raising the cash subsidy on exports of jute goods to 15 per cent from the current level of 7.5 per cent.
Besides, it has also favoured a 20 per cent subsidy on export of diversified or value added jute goods, sources said.
As an export-oriented industry, the local jute mills are entitled to get export credit at a 7.0 per cent rate of interest, but the concerned banks charge 12 to 13 per cent interest from them.
Considering the situation, the taskforce suggested that the interest rate should be fixed on the basis of client-bank relations.
The taskforce also suggested that the government should take steps to develop the infrastructure of the Mongla Port in order to facilitate the exports of jute and jute goods from the country's southwestern regions.
However, it recommended necessary steps for checking exports of high quality raw jute in the name of low grades or rejected items
To ensure a timely supply of quality seeds for the local jute growers, the taskforce suggested that the Bangladesh Agriculture Development Corporation (BADC) should make a buffer stock of jute seeds ranging between 200 tonnes and 300 tonnes.
Besides, the BADC can collect quality seeds from selected growers by paying incentive and sell those to the jute farmers at a subsidised rate for the sake of boosting the production of quality raw jute in the country, it suggested.
On the financial problems of the local jute mills, the taskforce also recommended for extending the time for the repayment of loan, which was received by the mills under the World Bank's Revised Jute Sector Adjustment Credit (JSAC), until 2013 from the existing 2008.
The taskforce finalised Sunday its recommendations at a meeting held at the Secretariat with its convener and Jute and Textile Secretary Abdur Rashid Sarker in the chair, sources said.
In March 2008, the government through a gazette notification formed the 16-member taskforce, that comprised representatives from all the stakeholders to find out the problems that the local jute sector has been facing and suggest their remedies.
One of the main objectives of setting up of the taskforce was to devise strategies on how to integrate the private jute mills with the sector's development process.
Another important task of the body was to review the implementation performances of the decisions taken earlier by the government for the development of the local jute industry.
"After holding a series of meetings and taking suggestions from the stakeholders, the taskforce has made a number of recommendations on areas of productivity, value addition, exports, government's fiscal support and operational aspects of the local jute industry," an official source told the FE.
Among the major recommendations, the taskforce has suggested that the government should consider raising the cash subsidy on exports of jute goods to 15 per cent from the current level of 7.5 per cent.
Besides, it has also favoured a 20 per cent subsidy on export of diversified or value added jute goods, sources said.
As an export-oriented industry, the local jute mills are entitled to get export credit at a 7.0 per cent rate of interest, but the concerned banks charge 12 to 13 per cent interest from them.
Considering the situation, the taskforce suggested that the interest rate should be fixed on the basis of client-bank relations.
The taskforce also suggested that the government should take steps to develop the infrastructure of the Mongla Port in order to facilitate the exports of jute and jute goods from the country's southwestern regions.
However, it recommended necessary steps for checking exports of high quality raw jute in the name of low grades or rejected items
To ensure a timely supply of quality seeds for the local jute growers, the taskforce suggested that the Bangladesh Agriculture Development Corporation (BADC) should make a buffer stock of jute seeds ranging between 200 tonnes and 300 tonnes.
Besides, the BADC can collect quality seeds from selected growers by paying incentive and sell those to the jute farmers at a subsidised rate for the sake of boosting the production of quality raw jute in the country, it suggested.
On the financial problems of the local jute mills, the taskforce also recommended for extending the time for the repayment of loan, which was received by the mills under the World Bank's Revised Jute Sector Adjustment Credit (JSAC), until 2013 from the existing 2008.