Taskforce on jute sector submits report to CAO

S M JahangirbrA jute sector taskforce has placed its report before the Chief Adviser's Office (CAO), making recommendations that includes diversification of product base, enhancement of policy support for infrastructure and related areas for the revival of the country's ailing jute industry, sources said. brThe high-powered body 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 in line with demands from the sector representatives.brBesides, the 16-member taskforce headed by textile and jute secretary has also favoured a 20 per cent subsidy on exports of diversified or value added jute goods, sources said. brAs an export-oriented industry, the local jute mills are entitled to get export credit at 7.0 per cent rate of interest, but the concerned banks charge 12 to 13 per cent interest, it observed.brAmong other major recommendations, the body has stressed the need for developing the infrastructure of the Mongla Port in order to facilitate the exports of jute and jute goods from the country's southwestern regions.brTo ensure timely supply of quality seeds for the local jute growers, it has also recommended that the Bangladesh Agriculture Development Corporation (BADC) should create a buffer stock of jute seeds ranging between 200 and 300 tonnes.brBesides, the BADC can collect quality seeds from selective growers by paying incentives and sell those to the farmers at a subsidised rate for boosting the production of quality raw jute in the country, it suggested.brTaking the financial problems of the local jute mills into consideration, the Taskforce also recommended for extending the repayment period of loans, which has been borrowed by the mills under the World Bank's Revised Jute Sector Adjustment Credit (JSAC), until 2013 from the existing 2008. brIt also underscored the urgent need for setting up a special 'Information Cell' under the jute ministry to develop a comprehensive database on the actual production, export, stock etc. of the local jute sector, the sources said. brHowever, it has recommended necessary steps for checking exports of high quality raw jute in the name of low grades or rejected items as such unfair trading by a section of exporters causes substantial foreign exchange losses to the country. brAccording to jute ministry officials, the Taskforce recently finalised its recommendations after holding a series of meeting and also taking opinions and suggestions from the stakeholders and the sector representatives.brIn March 2008, the government through a gazette notification formed the Taskforce to identify the problems that the local jute sector has been facing and suggest remedies.br One of the main objectives of setting up the Taskforce was to devise strategies on how to integrate the private jute mills with the sector's development process, an official source said.brAnother important task of the body is to review the implementation performances of the decisions taken earlier by the government for the development of the local jute industry, the source noted.br