Jute spinners have sought bank interest waiver from the government for two quarters to June of the current calendar year as they have sustained losses as a result of the political turmoil.
The Bangladesh Jute Spinners Association said political turmoil has hit export trade and income of the country's 96 private jute spinners.
Overall export earnings and activities of the factories have been 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. Many yarn factories cut their production by 20-25 per cent during the period, the official said.
Transportation cost was double that of the normal time and shipment of raw jute faced 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, they added. Â
The prevailing situation is changing at a slow pace. Prices of jute in the country are increasing; but exporters of the items do not raise prices commensurate with the production cost, chairman of BJSA Ahmed Hossain told the FE Sunday.
Cash incentive or subsidy from the government for different sectors should be increased, he said.
Presently, some 7.5 per cent cash incentive is provided on export of jute yarns, according to the Bangladesh Bank.
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Turmoil hits jute spinners hard
Rezaul Karim | Published: April 13, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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