Jute millers seek help to recover unrest losses

Jute millers have urged the government to take measures for non-classification of the sector's fresh loans to help businesses recoup losses caused by political unrest.

In a letter to textile and jute secretary Monday, the Bangladesh Jute Mills Association also urged the government to halt deduction of existing tax at source for five years against export earnings and quarterly bank interests.

Another request the association made is to provide financial assistance from Export Development Fund for the environment- friendly jute sector.  

"We've made the requests to the ministry seeking its assistance to help us overcome the crisis," BJMA secretary Abdul Barik Khan told the FE.

Already, a significant number of jute mills have been closed because of poor demand for jute sacking bags in the international market.

In this situation, the political unrest has brought double-whammy to the sector," Mr Khan said.

The BJMA secretary said production and shipment of jute goods have almost halved owing to the unrest.

Jute millers cannot carry their raw jute from rural areas to mills because of transport shortage. Besides, transport fares increased four to five times because of blockade and hartal, he said. "Production cost of jute-made products has increased significantly now-a days," he added.   

A total of 145 small and large jute mills are operating under the BJMA, and the sector provides direct or indirect employment for 40 million people.

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