Textiles and jute ministry has turned down a commerce ministry proposal for a project plan to expand the export of jute and jute goods, officials said.
"Any scope to take a project for enhancing the export of jute and jute goods is limited as production at state-run jute mills is fully shut," reads a Bangladesh Jute Mills Corporation (BJMC) letter.
No decision is yet to make to resume production at the mills with direct government investment. There is no production at the mills, it says.
But a process is well underway to lease out 17 out of 25 mills under private arrangement in line with a government decision.
Earlier, commerce ministry sought a plan to increase jute goods and agriculture items significantly according to the 21st meeting of a policy-making committee to expand activities of Bangladesh missions abroad to boost export trade, an official said.
On October 13, the BJMC sent its opinion to jute ministry against the commerce ministry's proposal.
It said, "The decision is not feasible by the BJMC as the jute mills under the BJMC are closed completely."
Jute ministry relayed the BJMC's opinion to commerce ministry, a high official of the ministry said.
The government put up the shutters of 25 jute mills under BJMC from 01 July 2020 for incurring massive losses over the years.
Later on July 16, a committee was formed to recommend the reopening of the units successfully within a short period.
The BJMC has already leased out five mills -- Bangladesh Jute Mills and Jatiyo Jute Mills in Dhaka, Crescent Jute Mills in Khulna and Hafiz Jute Mills and KFD Jute Mills in Chattogram.
Five private agencies, who have taken the lease are Mimu Jute Mills, Unitex Group, Saad Musa Group, Bay Group, and Jute Republic from the UK.
Until fiscal year 2019-20, the mills had a total of Tk 291.7 billion as capital and liabilities, according a report available with the BJMC.
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