Exporters of diversified jute goods are facing difficulties in availing cash incentive due to some complexities, including audit-related documentation.
Exporters said the government has announced jute goods as the product of the year in February 2023, offering 20 per cent cash incentive to raise earning from export of diversified jute goods.
Despite that they fail to avail the opportunity - mainly because of bureaucratic tangles and some complexities related to documentation, as banks do audits based on papers and mentioned words.
Meantime, the Bangladesh Jute Mills Association (BJMA) has recently sought the Prime Minister's intervention in solving the issue, so that the exporters of diversified jute goods, mostly small-sized businesses, can get the 20 per cent cash incentive.
BJMA Chairman Abul Hossain, in a letter to the PMO on August 14, said jute was declared as an agricultural product in 2016, and the Ministry of Agriculture issued notification in this regard. But the jute millers are not getting the facilities given to the agri sector.
He noted that the jute secretary told them that though jute is an agro product, goods made of jute are not agricultural ones. So, the millers are deprived of getting benefits as exporters of agricultural goods.
"Annually US$ 9.0 billion can be earned, if jute-made products get the same benefits given to agri-products."
Private entrepreneurs are also installing new machinery to produce diversified jute goods alongside traditional ones following the government's policy supports for the last couple of years.
Diversified goods have huge export potentials too. But now the exporters are in difficulties, as there is a stalemate regarding the list of 282 diversified jute goods, prepared by the Ministry of Textile and Jute, the BJMA chairman opined.
The Ministry of Finance did not send the list to the Bangladesh Bank (BB), and so the central bank did not take any measure accordingly.
Mr Hossain sought the PM's intervention to solve the complexities and implement the declaration, so that the exporters of diversified jute goods can get the cash incentive and jute goods can get facilities like the agri-products.
"It'll cost no additional expenditure to the government," he added.
Talking to the FE, Rashedul Karim Munna, managing director of Creation Private Ltd, said these exporters need certification from the BJMA or the Bangladesh Jute Spinners Association to avail the cash incentive. But being small in size, they do not meet the membership criteria of any of these two entities and cannot be members.
"To be an association member, they need to have weaving looms. There are at least 200 such entrepreneurs or factories, which are small in size and work at macro level to produce diversified jute goods," noted the exporter of diversified jute goods.
Besides, there are complexities over requirement of jute use in production level. According to the Jute Act 2017, diversified jute goods, except hessian, sacking, CBC and yarn of six counts or more, would get 20 per cent cash incentive, if produced by using at least 50 per cent jute.
But as per a BB circular, diversified jute goods are those which use 50 per cent jute based on their respective FoB (freight on board) prices, he added.
Ismat Jerin Khan, managing director of Jermatz Limited, said small entrepreneurs produce hand-made diversified goods mostly by women. These jute goods are eco-friendly, while 100 per cent value addition is done by using local raw materials, unlike ready-made garment.
She focused on ample fund, research and training to help entrepreneurs to produce diversified jute goods - not only for export but also for local market.
Policy support is needed to take a small entrepreneur to exporter level, she added.
Both the entrepreneurs urged the government for taking required measures to solve the existing complexities, so that the exporters of diversified jute goods can get the cash incentive and increase their footprints in the international market.
munni_fe@yahoo.com
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