Jute spinners for 10pc cash incentive on yarn export

Jute spinners have sought re-fixation of cash incentive rate on export of jute yarn to save the country's jute industry, sources said.

The president of Bangladesh Jute Spinners Association (BJSA) sent a letter to the finance minister seeking an increase in the existing rate, they said.  

Presently, some 7.5 per cent cash incentive is provided on export of jute yarn, but the spinners have sought 10 per cent cash incentive from the next fiscal year (FY).  

BJSA said political turmoil has hit export trade and income of the country's jute spinners.

Overall export earnings and activities of the spinners were hampered because of blockade coupled with hartals enforced by BNP-led 20-party alliance, an association official said.

During the blockade, a large number of labourers of the jute mills could not attend their workplaces. As a result, production at the factories decreased and the millers incurred massive losses.

Transportation cost was double that of the normal time and shipment of raw jute faced a serious setback with export decreasing significantly.

Besides, the spinners have been facing liquidity crisis in operating their business smoothly. For this, the government should stand beside the private jute spinners to help them to cope up with their fund crisis and losses.  

The prevailing situation is changing at a slow pace. Prices of jute in the country are increasing; but exporters of the items do not increase prices commensurate with the production cost, an official of BJSA told the FE.

Cash incentive or subsidy from the government for the sector should be increased from the next fiscal year; otherwise, the sector will fall in difficulties, he said.

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